The service sector is rapidly gaining importance in Japanese industry. According to a survey by the Management and Coordination Agency, the service industry earned over 100 trillion yen in 1994, a sharp rise of 50% in five years. This figure brings service industry revenues to 80% of the retail industry and 40% of the manufacturing industry. The number of service industry employees also grew markedly over the same period, further increasing this sector's weight in the Japanese economy.
Earnings Up 50% in Five Years
It was found that in the five years since 1989, when the survey was first conducted, the number of service industry establishments around the nation increased by 9.8% for a total of 1.2 million. Of these, 450,000 were asked to provide information on income, employee numbers, and other items as of November 1, 1994.
Based on the results, total annual service industry income was estimated at 118.7 trillion yen, a 46.9% increase over the previous survey. Service industry growth during this period was particularly prominent in comparison with the retail (20.3%) and manufacturing (0.5%) sectors.
Service industry enterprises catering to the individual jumped an explosive 64.7% over the previous survey, with earnings of 55.3 trillion yen. Business-oriented firms also managed income of 55.3 trillion yen, representing a 35.5% increase. Enterprises targeting both individual and business concerns grew 26.8%, recording earnings of 8.1 trillion yen.
The total number of service industry employees now stands at 7.9 million, a 15.1% increase. This represents a significant contribution to employment, which over all grew by only 4.7% in five years.
Top Earner Pachinko Becomes a 30-Trillion-Yen Industry
By business type, Pachinko was again the highest earner in the service industry, with an income of 30.5 trillion yen, double what it was in 1989. As this figure indicates, pachinko is more popular than ever. Pachinko was followed by the hotel business, which earned 7.6 trillion yen, (31.2% up from the previous survey), and the advertising agency business, with 6.8 trillion yen (down 4.2%).
(The above article, edited by Japan Echo Inc., is based on domestic Japanese news sources. It is offered for reference purposes and does not necessarily represent the policy or views of the Japanese Government.)