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Running head: POVERTY AND HOMELESS IN JAPAN 1

Poverty and homelessness in Japan

Sofiane Zedira

Tae Furuse

IBUS 596-01

05/04/2021

Introduction

Poverty is a concern most countries face including Japan. The word poverty is defined

by one's lack of material possession or income for which they need to live. While it's difficult to

declare that living in poverty and homelessness is a phenomenon, the issue still continues in

first-world countries such as Japan. Studies by various economists in Japan show an increase

in the very low-income population. They are evident due to the increasing gap in safety nets

such as social security and public assistance and their individual scope. Public assistance

covers less than 20% of the estimated families in need, and this indicates that there many

families who are in need but do not receive assistance from the state. Amartya Sen and

economists say that poverty is not just a matter of income but defines it as capacity deprivation.

Besides lack of income, poverty includes being unable to afford and access social service and

the personal freedom to fulfill oneself.

On the other hand, homelessness exists in most countries, and while it is not a lovely

phenomenon, some people in Japan suffer from instability due to homelessness. The majority of

the people who are homeless are due to economic recession and a collapse in an inflated

bubble economy in the late 20th century, lack of employment, business failure, multiple debts,

and others as a result of work-related difficulties that have left them in the streets.

Homelessness is approved that there is a problem in society. The issue of homelessness affects

the homeless themselves and the other people in the community. Hence, there is a need to find

a solution to it.

Causes of poverty and homelessness

1. Unemployment and employment stability

Unemployment is a significant cause of poverty, and those that are unemployed or are

trying to find a job are most likely to become poor. The possibility of becoming a part of a

low-income household is excellent for unemployed individuals aged between thirty and fifty. The

shift of employment to irregular employment is a threat to livelihood because it’s unstable and

offers low wages. A decrease in permanent job openings and the overall employment situation

has become adverse and unsafe.

Moreover, remaining in these dangerous work contracts is a threat to their social security

benefits because they are either restricted or do not apply, and their wages are most likely to be

minimal. The elderly and the disabled face poverty because they have limited employment

opportunities. Half of the population of persons living with disabilities are unemployed, and also

half of the population headed by elderly persons receive public assistance.

In addition, elderly persons living alone experience social isolation and are exposed to

the hostile condition in their day to day life due to their low revenues. Hence careful

considerations on public pension for the older people to secure a minimum standard of living

needs to be checked compared to public assistance. Generally, employment instability and

unemployment result in poverty and directly impact businesses. Businesses depend on

individuals to purchase their products. With low-income wages or no income at all, only those in

a position to buy will affect the expected profits within a given population.

2. The dysfunction of the public assistance system

An increase in poverty and homelessness is also being attributed to the functional failure

of the public assistant systems as a net safety. Twenty percent of the estimated household have

a lower income than the minimum living standards and receive assistance and benefits from the

public assistance system. This indicates that not everyone in need is receiving aid from public

service. Budget allocation of public assistance has become a problem due to structural reforms.

For instance, Koizumi's local public finance reforms brought about change in the distribution of

tax grants, and the financial burden of the local government on social security increased

significantly.

Opposition on this matter resulted in some compromise (Kubota, 2017). The ministry

health, labor, and welfare suggested reducing funds towards national medical insurance, public

assistance, and child benefit under the public offering. A discussion between the officials

resulted in this suggestion being retracted. This indicated the difference in perception between

the national leaders and the local leaders. While the show claimed that higher staffing resulted

in higher allocation levels, the provincial government thought it was the other way round that

more increased staffing was due to inadequate staffing, which could not deal with the increasing

demand.

Moreover, the local government stressed the cause of poverty which requested public

assistance such as unemployment and aging. However, the show implied the difference was

due to poor administration of the local government and that the allocation remained limited. A

more significant percentage of the households receiving public assistance are single-person. A

majority are headed by elderly persons or people living with disabilities, which constitutes less

than 5.9%—the critical reason for benefits to cover for illness and injuries. However, a law

barring persons with no disabilities and who can work was put in place to prohibit them from

accessing these benefits, which resulted in increased poverty.

3. Single-parent households

About 10% of the single-parent households receive public assistance, which indicates

the economic vulnerability of such families. A survey on national consumption conducted by the

show revealed that there are close to one million single mothers in Japan. 83% of the one

million single-mothers are working in Japan, although Japan's wage gap between genders and

the nature of employment is still substantial (Mimura, 2019).

Generally, whether doing a part-time job or a permanent job, women are paid lower

wages than their male counterparts. The majority of the single mothers are experiencing

hardships and demanding situations, and only 10% of them receive public assistance in Osaka

and even less nationally. Besides facing public assistance discrimination, they face social

pressure, making most of them not take up social aid. In addition, the social welfare policy

started providing employment assistance instead of economic assistance. Also, it reduced the

unique childcare benefits set aside for single mothers that are essential to household income.

Early marriages that end in divorce also leave the single mother with low wages or no income at

all due to a low level of education. In order for these single mothers to get public assistance,

they are subjected to harsh employment assistance, despite the low amount of jobs available.

Therefore these hardships faced by single mothers affect business in Japan because a majority

of them have low wages, which cannot cater to their basic needs and afford other items in the

market.

4. Multiples debts

Some organizations offer consumer loans aiming at people with financial hardships.

These organizations aim at taking advantage of people already in difficulty. The majority of

these people cannot secure bank loans, and their only option is consumer lenders, although

they levy high interest rates. The lenders have a difficult way of collecting the loans, which

forces people to flee away and become homeless when they are not able to pay the loans.

Ways of dealing with the rise in poverty in japan

1. Unemployment benefits

Unemployment benefits are a safety net in the form of social security insurance that one

gets in case of a job loss. However, specific guidelines are to be fulfilled to benefit from the

allowance. For instance, one is required to have six months of former employment (Kubota et al

2019). This does not apply to recruits who have recently graduated. It is also not applicable to

employees who work below 20 hours a week. Their period one can get unemployment benefits

is limited and ranges from 90-330 days.

If one is not able to get a job within these given periods, there are no other means to

ensure minimum income except for public assistance. Japan is beginning to experience

long-term unemployment, which may necessitate the adoption of the current income security

systems. By using these unemployment benefits, one can find alternative means of income

such as business. Business can boost the livelihood of an individual.

2. The public assistance system

The purpose of the public assistance system is to provide a healthy and cultural

minimum standards of living to persons in need and help them obtain independent living.

Independent living entails various factors such as self-reliance and social independence through

work and mental healthiness. However, the Japanese system faces challenges because its

emphasis is on helping people have a minimum standard of living instead of focusing on

independent living. Two examples have illustrated the importance of self-support in public

assistance systems. In Tokyo, there is a rapid increase in the aging population and the number

of households headed by the elderly, an increase in unemployment and homeless people,

increased drug and alcohol abuse, and multiple debtors.

To improve the livelihood of these people, a project was put in place to strengthen

self-reliance and also offer financial support. This includes employment assistance, health

enhancement, and participation in community lives. This is referred to as the primary project.

This project focuses not only on employment assistance but also on a wide range of activities to

provide long-lasting independent life.

In Kushiro, Hokkaido, a survey on single mothers indicated that there is a need to offer

assistance that exceeds job access counseling. This area has a trend of generating young

unskilled young mothers, and they face hardships trying to earn a living and taking care of their

children. Mothers who got married at a young age are guided on health management matters

and how to manage social relations. The participants in these programs are enrolled for home

care work, office computing, cooking and can get skills to seek better employment opportunities.

3. The self-support assistance to the homeless

Rehabilitation programs for the homeless have been started in Japan. The rehabilitation

is done through medical care, housing, securing stable jobs, and training. The national budget

makes an allocation to finance this rehabilitation. Laws have also been put in place to protect

homeless people. The homeless are being provided with temporary shelters, basic needs,

public assistance allowances, and the protection of their human rights through campaigns to

raise awareness.

4. Minimum wages

Minimum wages should be a fundamental support and safety net for low-income

employees. The minimum wage should meet the minimum standards of living that are stipulated

by public assistance. In Japan, however, the legal working hour does not meet the minimum

wage of the workers in some instances. This raises consideration about the capability of small

businesses in comparison to the living needs of employees and hence suggests the role of

minimum wage as a safety net is being overlooked (Kitagawa, 2021). Therefore there is a need

for the government to offer a minimum wage to workers in order to elevate the level of poverty.

Conclusion, poverty and homelessness in Japan are the real issue but is often said to be

invisible. The government needs to address these issues by using the strategies described

above to ensure its population's wellbeing. Poverty and homeless generally affects human life

negatively.

References

Kitagawa, Y. (2021). Homeless Policy as a Policy for Controlling Poverty in Tokyo: Considering

the Relationship between Welfare Measures and Punitive Measures. Critical Sociology, 47(1),

91-110.

Kubota, H. (2017). A narrative inquiry into the experiences of people who are homeless in

Japan.

Kubota, H., Kohlen, H., Clandinin, D. J., & Caine, V. (2019). Recognizing the body as being

political: Considering Arendt’s concepts in the context of homelessness in Japan. Journal of

Contemporary Ethnography, 48(2), 287-305.

Mimura, K. (2019). Poverty in a Rich Country-A Case Study on the Perception of Poverty in

Japan.