Japanese Millennials: Living Through the Lost Decade with Economic Struggles
How is the country’s “Lost Decade” affecting the Japanese millennials?
The term ‘lost decade’ refers to the time after the asset price bubble burst in the late 1980s when Japan’s economy stagnated—this perpetuating period of the economic slowdown had consequences that still affected Japanese society. The millennials in Japan who come of age during these turbulent times are amongst the most affected. The socioeconomic challenges faced by this generation have tremendously changed their aspirations and perspectives.
From facing disaster after disaster to experiencing economic insecurity and delayed life milestones, the hardships faced by the millennials in Japan provide valuable insights into the deep-rooted impact of Japan’s ‘lost decade.’
Millennial culture in Japan is a result of the struggles and victories of the Japanese millennials who have spent a significant period of their lives navigating a landscape that is affected by economic adversity.
The following points explore how the ‘lost decade’ continues to shape the mindset of millennials in Japan.
- Inveterate Insecurity about the economy
The economic fallout faced by the Japanese millennials made limited career prospects a common thing for them. The life of a typical millennial in Japan started with a bubble pop which led to economic stagnation that lasted more than three decades, leading the millennials never to experience a good or stable economy.
The millennial generation of Japan was compelled to take up irregular jobs that eventually caused a lack of job stability, lower salaries, and lack of access to employee benefits and social security.
The continuing economic instability impacted the ability of millennials to save and build wealth. As this generation witnessed their parents struggling with financial matters, amongst all other prevalent matters, the Japanese millennials moulded themselves to have a conservative perspective on spending and investing.
Millennials’ values in Japan were sculpted by the ‘lost decade’, which forced them to be more realistic about the economic worldview as compared to the generations that preceded them who never started their life with immense negative about natural disasters and economic trends.
- Changing perceptions of success and work
Due to the economic downfall, the traditional corporate culture that promised lifelong employment and career growth suddenly lost its importance. As a consequence of the unstable situations in the early 90s, Japanese millennials started questioning the ‘work yourself to death’ mindset of the earlier generations and inclined more toward career paths that offer flexibility and work-life balance.
The changed perspective of success by Japanese millennials has highlighted personal achievements over financial victories. Millennials in Japan are now refusing to accept the overtime working culture and started embracing entrepreneurship, freelancing, and other flexible opportunities.
The idea of gaining control over their destinies is a prominent reason why Japanese millennials are building ventures and pursuing their passions, which enables them to align their work with their values and interests.
- Delayed life milestones for the Japanese millennials
Facts about millennials in Japan reveal that the number of births in Japan fell to 1.26 per woman in 2023 which marked the lowest in 17 years. Traditionally, getting married and starting a family was a common norm. However, economic uncertainty and constantly changing and degrading financial trends have led millennials in Japan to postpone marriage and childbirth.
Millennials women in Japan are unable to meet the cost of raising a child due to their unstable jobs and lack of financial security. This adversity has made the Japanese millennial woman hesitate to take the responsibility of being a parent and rather prefer to enjoy their lives with the limited income they receive.
Similarly, millennial trends showcase that buying a home or property was considered a milestone for baby boomers in Japan but millennials have a different take on it. Homeownership was earlier considered a victory but is no longer seen the same way by Japanese millennials.
Entering real estate has been challenging for Japanese millennials because of the high cost of living and the increased weight of student loans. This has resulted in them staying with their parents or renting spaces throughout their life. As Japanese millennials witnessed a tremendous decline in asset prices, it is less essential for them to own a house as compared to the previous generation.
- Social Isolation and degrading mental health
The repercussions of the lost decade extend beyond economic aspects, impacting the mental health of the Japanese. ‘Hikikomori’, a Japanese term for a severe form of social withdrawal, has risen amongst the millennials in Japan. The pressure to secure a stable job, pay off student loans, and meet societal expectations are some of the main reasons leading to stress, anxiety, and other mental health issues among the millennials in Japan.
Additionally, as millennials are inclined to the idea of living an individualistic lifestyle, their ties with traditional communities are weakening, which eventually causes social isolation and loneliness.
As millennials constantly face the challenge of establishing meaningful connections due to the temporary nature of their jobs, their sense of belonging is eroding, and the internal network of people which was once prevalent in Japan is being faded.
- Technological Advancement and Innovation
Despite the hardships that occurred due to the bubble burst, Japanese millennials found rescue in the rapid advancement of technology by constantly updating themselves with innovations.
The tech-savvy generation overcame the barriers of economic instability by embracing digitalization and technological advancements. Online platforms are becoming a great way for Japanese millennials to connect with people who share the same mindset as theirs and exchange ideas and support during testing times.
Technology enabled millennials in Japan to challenge the traditional corporate culture and welcome the opportunity to work online, thereby creating a global network with people of the same interest and passions.
Multi-faceted Impact of the lost decade on a Japanese Millennial
The lost decade had numerous effects on various aspects of the life of a typical Japanese millennial. Economic insecurity, changing work attitudes, mental health challenges, and tampered life milestones are all a few prominent parts of the complex tapestry.
Despite the challenges, millennials in Japan are resilient and adapting to the changing landscape. However, as Japan advances, policymakers need to address the hardships faced by this generation. Policymakers need to provide financial tools and literacy of financial planning in Japan to ensure a brighter future for them.
