In 2017, Prime Minister Shinzo Abe boasted during a Diet speech of the achievements of his own economic policy. He said that, as the result of his Abenomics, the goals of economic growth and wage hikes had been achieved. He declared that what had been thought to be impossible was realized by his Abenomics, one goal after another. Based on this recognition, new policies were launched which form the principle of eliminating the distinction between regular and non-regular employees and applying equal pay for equal work. His policy was received favorably, but his recognition of the current situation includes things that do not match the facts. The economic growth rate that the government had targeted has not been achieved yet. The employment situation is improving, but economic growth, nominal wages and prices are not as good as expected by the government. This paper analyzes basic conditions of the Japanese economy as a premise of economic policy, and looks into the future of the employment system.
