The OECD has released the results of the International Assessment of Adult Competencies (PIAAC). The first International Assessment of Adult Competencies was conducted in 2011-12. This time, in 2022-23, it will be the second survey. The survey covers people aged 16-65 in 31 countries and regions. It measures the skills required for social life. Japan secured the top two in all three areas, including “reading comprehension.” People around the world appreciate Japan’s high level of ability. On the other hand, there is something that is puzzling. Finland and other Nordic countries have good results in PIAAC and also have very high labor productivity. Japan’s productivity is about half that of Nordic countries, ranking 21st out of 37 countries.
I want to know why there is a difference in productivity between Japan and Northern Europe, even though they have the same high level of ability. We have come to understand part of the difference. The Japanese 16-24 age group ranked first among the participating countries and regions in terms of numerical thinking ability. However, after peaking at 16-24 years old, numerical thinking ability tended to decline with age. In other words, “numerical thinking ability” tended to decline steadily from the 25-year-old age group onwards. The Nordic countries that ranked high in the three areas continued to improve their numerical thinking ability into their 30s and 40s. Finland, which ranked first, and Sweden, which ranked third, showed the best results in the 35-44 age group. Japan may be an early bloomer, while the Nordic countries are late bloomers.
So how do Nordic countries improve their late bloomer abilities? The conclusion is that they improve their abilities through relearning (reskilling). Nordic countries provide generous financial support for reskilling at universities. An OECD report released in 2021 states that Nordic countries have a high participation rate in work-related retraining among 25-65 year-old. Sweden, known as a leader in reskilling, enacted the Educational Leave Act in 1974. This law guarantees that those who take leave to study will be able to return to work with the same working conditions and wages as before the leave. In Japan, the participation rate in retraining is only 37%, about 20 points lower than in Nordic countries. Investment in reskilling is also poor. Japan’s skills development expenditure, excluding on-the-job training (OJT), is only 0.1% of gross domestic product (GDP). This is far behind the United States’ 2.08%, France’s 1.78%, and Germany’s 1.20%. In order to increase labor productivity, it is urgent to create an environment in Japan that people can continue to learn.
