Containerization and globalization
developed economies, developed economies tend to lose low-end jobs. While the unemployment rate in Japan stayed below 2.5%, 14 the unemployment of the USA has risen, as shown by the chart below:
Unemployment rate of the US (% of total labour force) (national estimate)
10
9
8
7
6
5
4
3
1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Figure 3: Unemployment rate in the USA (national estimate) as a percentage of total labour force 15
Although it was mainly the 1973 oil crisis and the 1973-1975 recession that caused the rise of unemployment in 1975, we can see the possible effect of the cheaper transportation by comparing the unemployment in 1973 to the figure in 1979 (where unemployment were at the low point in two different economic cycles).
The changes in wages in Japan also showed the same pattern. Japan experienced a significant wage rise during the period (as shown by the chart below).
Average Monthly Regular Earning in Japanese Manufacturing Sector (Unit: 1000 yen)
140
120
100
80
60
40
20
0
Figure 4: Average Monthly Regular Earning in the Japanese Manufacturing Sector 16
14 World Bank. ‘ Unemployment, total (% of total labor force) (national estimate) https://data.worldbank.org/indicator/SL.UEM.TOTL.NE.ZS?locations=JP. 15 World Bank ibid.
16 Statistics Bureau of Japan. ‘ Age, Years of Service, Monthly Cash Earnings of Regular Employees and Number of Employees by Industry and Sex (Enterprises with 10 or more Regular Employees) (1958-2003). (Chart 19-37-a). https://stat.go.jp/English/data/chouki/19.html.
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