Amidst a surge in leisure activities, Japanese residents are increasingly adopting frugal practices
In a significant shift, Japan is witnessing a growing preference for leisure activities over work, as indicated by the Japan Productivity Center's 2025 Leisure White Paper, published on July 16, 2024.
This trend can be attributed to a combination of cultural shifts, policy initiatives, and demographic factors. One notable shift is the increasing support for alternative work arrangements, such as the four-day workweek, particularly among women in their 30s. This suggests a changing priority among younger demographics, driven by a desire for better mental health and more time for personal pursuits.
Policy initiatives, such as the Tokyo Metropolitan Government's three-day weekend policy, are also contributing to this trend. Though awareness of the policy is moderate, among those informed, over half support it, citing benefits such as increased family time, opportunities for hobbies, and improved well-being.
The pandemic has also prompted some employers to offer hybrid work options, reshaping routines and making Japan a more appealing place to work for some, especially international professionals and younger Japanese. This shift is challenging the stereotype of the Japanese workaholic, as it allows for earlier departures from the office and longer vacations.
Demographic and gender dynamics are also playing a role. The gender pay gap remains significant, but new legislation will require large firms to disclose gender pay gaps and the share of women in management, reflecting an official push toward addressing workplace inequalities. This may further empower women—already a demographic with high support for leisure-oriented policies—to advocate for changes that favour work-life balance.
As leisure time becomes more valued, spending patterns are likely to reflect a greater emphasis on experiences—such as travel, dining, cultural activities, and hobbies—over traditional consumption of goods. This aligns with global trends where increased leisure time correlates with higher expenditure on services and experiences.
With remote and hybrid work enabling employees to live outside major metropolitan areas like Tokyo, local economies in smaller cities and rural regions may benefit from increased consumer spending on leisure activities, dining, and retail in those areas.
However, traditional Japanese spending habits, such as high savings rates and conservative consumption, may be challenged by this new emphasis on leisure. Younger generations, in particular, may prioritize spending on quality-of-life improvements, potentially reducing savings rates over time.
Businesses catering to leisure activities, wellness, family-friendly services, and shorter travel (staycations, local tourism) could see growth as workers seek to maximize their increased free time.
Despite the decrease in the participation rate in domestic pleasure trips in 2024, which may be a temporary phenomenon due to recent price spikes, the overall trend suggests a notable departure from Japan’s longstanding reputation for overwork, with implications for both the labor market and consumer economy.
During this shift towards leisure over work in Japan, there's an emerging tendency for people to prioritize experiences such as travel, dining, and hobbies, rather than traditional goods consumption. This aligns with global trends where increased leisure time often leads to higher spending on services and experiences.
As a result of policy initiatives like the three-day weekend policy, and the increasing support for work-life balance, particularly among younger demographics, the emphasis on leisure activities is likely to boost businesses catering to leisure, wellness, family-friendly services, and shorter travel options, such as staycations and local tourism.
