Japan’s Untapped Workforce: Why Supporting Single Mothers Can Save Japan

Japan is facing a well-documented labor crisis. By 2030, the country is projected to face a shortfall of over 6 million workers, a figure that reflects both its aging population and declining birthrate.

Businesses across Japan are already feeling the pressure, struggling to find talent, retain employees and keep teams engaged.

In this context, it’s surprising that one of the most capable, motivated, and overlooked segments of the workforce continues to be held back: single mothers.

The Overlooked Reality

Japan has one of the highest rates of working single mothers in the developed world. Over 85% of single mothers are employed (!) and yet, more than half (56%) of single-mother households in Japan live in poverty, the highest rate in the OECD.

This isn’t due to lack of effort. Many single mothers work multiple part-time jobs, doing everything they can to provide for their children. But they are often caught in a system that unintentionally penalises them for trying to do more.

For example, the ¥1.3 million income ceiling limits how much single mothers can earn before losing access to vital social support like subsidized childcare or health insurance. The message is clear but also contradictory. Work more, and you risk losing what little support you have.

Add to this the lack of flexible work arrangements and affordable childcare, and it becomes obvious why so many single mothers remain stuck in low-wage, unstable employment.

The Business Case for Inclusion

While this is a serious social issue, it’s also a missed opportunity for business.

Supporting single mothers isn’t just about doing the right thing, it’s also strategically smart. Companies that create space for single mothers to succeed and thereby gain access to a pool of talent that is already demonstrating resilience, adaptability and deep motivation.

In a country where employee turnover is costly, often estimated at 30% to 200% of an employee’s annual salary, retaining loyal, long-term staff matters more than ever.

Single mothers, when supported with flexible hours, remote options, and understanding management, often become among the most committed and grateful employees in a company.

There’s also a growing awareness among both consumers and employees that companies should stand for something. Supporting underserved communities through inclusion and meaningful engagement sends a clear signal to the world. It shows that this company doesn’t just talk about social responsibility, it acts on it.

Small Changes, Big Impact

Supporting single mothers doesn't require massive HR overhauls. Sometimes, it begins with small, practical steps, such as:

• Offering flexible schedules or remote options

• Re-examining salary structures to avoid penalising those just above the income cap

• Creating partnerships with charities that work directly with single-parent households

• Providing re-skilling or return-to-work opportunities

• Actively including single mothers in company hiring campaigns or internal upskilling programs

These changes not only help women re-enter or remain in the workforce, they also build stronger, more empathetic workplace cultures.

Rethinking "Workforce Readiness"

Too often, society frames single mothers as people who need help. The truth is, they’re already helping give back a lot. To their families, their communities and the economy.

What they need is not just charity, but opportunity.

By offering real, flexible, and meaningful ways to participate in the workforce, companies help shift the narrative. And in doing so, they support not just the women themselves, but their children—Japan’s future generation.

A Win-Win Opportunity

As Japan searches for solutions to its labor shortage, the answer may be closer than we think. Creating a more inclusive workforce isn’t just about meeting a quota or ticking a CSR box. It’s about tapping into the human potential that’s already here, waiting to be recognized.

If this topic resonates and you’d like to share or connect to discuss further, feel free to reach out.

Let’s keep learning and building a more inclusive future together :)