Japanese glass ceiling for women cracking

In August 1999, Kathy Matsui raised many a male eyebrow in Japan with a report on how the future of the world's No.2 economy was in women's hands.

Goldman Sachs (Japan)'s chief strategist called the phenomenon "womenomics".

Part of Matsui's analysis was that tapping just the male half of Japan's population lowered the quality of the national labour pool and, ultimately, gross domestic product.

Discrimination also exacerbates Japan's biggest long-term challenge: a low birthrate.

It came out at a time when politicians were increasingly deriding career women who did not bear children as selfish and over-educated.

Young women refusing to marry and have children - many of whom live with their parents - were labelled "parasite singles".

Yet six years on, Matsui senses some promising cracks in Japan's glass ceiling, especially now with the economy on the mend.

"While much more progress still needs to be made at the public and private sector levels to foster greater female labour participation, we believe Japan is finally moving in the right direction," Matsui says.

Moreover, investors should begin looking at industries poised to benefit from her view that "womenomics is likely to become a secular investment theme". Notice Matsui's use of the word "secular", not "cyclical".

In a new report, Matsui recommends a basket of 115 companies that may get a boost from increased female purchasing power.

They include industries related to daycare, nursing care, real estate, financial services, online and mail-order retailing, beauty, prepared foods, apparel and accessories, furniture, entertainment and placement agencies.

Women are still an under-used asset in this nation of 127 million people and they are paid a fraction of what men get.

Japan's glass ceiling still keeps many well-educated, experienced and ambitious women out of corporate boardrooms, unless they're serving tea to the men sitting around the table.

Also, the lack of an affordable infrastructure for women who want to work and raise children means motherhood is often a career-ending prospect. Until more mothers can have careers too, the birthrate won't increase, leaving Japan with a long-term labour shortage.

What politicians don't realise is that the low birthrate is a form of rebellion.

Quietly, though, things may be improving, a trend personified by Fumiko Hayashi and Tomoyo Nonaka. This year Hayashi, 59, was named chief executive of retailer Daiei and Nonaka, 51, became chief executive of Sanyo Electric.

They're the first women to run major Japanese companies.

Prime Minister Junichiro Koizumi also has realised women deserve better.

Last year he said the Government would "provide assistance so that women can exert their talents and take on challenges in various areas, including business".

In last month's elections, Koizumi encouraged several women candidates to run for office.

Anecdotal data also tell the story. "Out of economic necessity or as a result of lifestyle choices, an increasing portion of Japanese women are actively participating in the workforce and becoming an important source of income and consumption growth," Matsui says.

Last year the ratio of women in the labour force was still low by developed nation standards at 55 per cent. That compares with 62 per cent in the United States and 61 per cent in Britain.

If Japanese female labour participation rates hit US levels, per capita income would be 5.8 per cent higher, Matsui said. Such girl power would provide a nice boost to Asia's biggest economy.

- BLOOMBERG