A New Wave of Homeless: The Young Professional

The Japanese economic forecast is bordering grim. Years back, however, in 1998, I remember sitting in my freshman Intro to Economics class and looking at an economic growth chart.

The US line was high, but almost flat, only slightly upward sloping. Then followed Japan, which at the time was coming off of three decades of spectacular growth, nearly catching my home country's stagnant line and projecting to surpass it.

The lecture's point was, "Hey, America's not always going to be the super power in the world, sooner than we think other countries will be stronger."

Enter Japan. Based on its skilled labor force, Japan was rising to the top of the automobile and technological markets. It was this technology paired with a small defense allocation that fueled it's rapid economic growth.

That was in the 90s, the end of Japan's heyday. The yen was strong and it showed. And so came the birth of consumer services that relied on this innovative technology, such as the internet cafe.

Well, the boom ended, and actually turned into a recession in the early 2000s. When I arrived in Japan in 2003 the job market and economy was oozing out of its slump. It has continued to stabilize; however, the road ahead seems flat.

Last week the yen had its weakest showing against the US dollar in 4 and 1/2 years at 124 and also against the Euro--at 166-- since its inception in 1999.

In 1980 it was believed that a foreigner teaching in Japan could make an almost unfair high salary of $2,500 a month teaching English when the Japanese young professional just out of college averaged $1500 per month. Well, 20 years ago that was true.

In 27 years both salaries have changed little.

My Japanese friend graduated as an economics major from a 4-year university and became a banker. After taxes, three years later she is taking home about $1500 a month.

At the same time, a foreign teacher friend of mine said his low salary, coupled with the low exchange rate, is almost putting him into debt and allowing him to pay only the interest on his school loans.

Evidently Japan has responded little to the inflation rate and ups and downs of the job market. The Japanese pay scale benefits the life-long employee, growing slowly based on the amount of time you put in. If you stay, your company will take care of you.

This initial low salary base is why it is so common for 20-somethings and now even 30-somethings to live with their parents. In Japanese they are called "parasites."

But what happens to those independent-go-getters that want to make it on their own? In Tokyo a surge of them are recently classifying themselves as "one step away from being homeless."

These young people have been spending their nights at places that could be tagged as a computer geek's perfect Saturday night out: the internet cafe.

Meet the influx of "Net Cafe Refugees" who, after being evicted from their apartments because they can't afford rent, opt for the only thing they can afford: a pay-per-hour small cubicle-like room equipped with a computer, free soft drinks, sometimes a TV and if you're lucky, a small sofa.

On 24-year old, as quoted in the Yomiuri Shimbun newspaper, has been calling it a temporary home for more than one year, at 100 yen per hour. About one meter wide, he stretches his legs under a table and sleeps with a suit on. He owns one small bag.

"Underwear is mostly disposable. I throw away a winter coat in the spring," he said. Meals are fast food and instant ramen.

When he awakes, the vocational college-graduate goes to work at an imaging company, and earns 9000 yen a day ($80) as a temporary staffer.

With a low wage and no savings, he became unable to pay the commission that is required to renew his apartment rental contract. He has no money to pay the steep key money and security deposit that almost all apartments in Japan require.

So where does that leave him? Relying on a venue for a lifeline that is originally meant to be a place for fun and free time.

And he's not alone. There are believed to be more than 2 million "Net Cafe Refugees." A younger generation whose values have shifted making them less ready to conform to the corporate work ethic of their parents and grandparents and more ready to try to give it a go on their own.

"My family home is nearby, but I can't sit still at home because I think I have to become independent," the newspaper quoted another net cafe refugee in Tokyo as saying.

There is a new age of homelessness in Japan, influenced by insecure employment and low wages. They are working and earning, but with no lump sum to use as a crutch, getting out of poverty is nearly impossible for them in the metropolitan areas.



(More about Net Cafe Refugees at USA Today .)