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Investor Presentaiton

Significant job losses have been avoided in Japan A breakdown of the number of employees by contract type (y-o-y, %) 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 ■Full-time employees Dispatched workers Others Part-time employees Contract workers Total -2.5 Jan Apr Jul Oct 2020 Jan 2021 Apr Jul Oct (CY) NOMURA One reason for the smooth reopening of Japan's economy after the pandemic is the relatively small scale of job losses during the pandemic. Employment and income conditions for Japanese households avoided the serious deterioration and jump in unemployment seen in the US and European countries. The risk of employment and household income acting to hinder economic recovery may thus be lower. Avoidance of large scale job losses, on the other hand, may mean that little progress has been made in reforming Japan's unique employment customs and system characterized by terribly low employee mobility. Following reopening after the pandemic, these characteristics of Japan's labor market could pose a serious challenge to economic growth. Source: Nomura, based on MIC data 10
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