[jmyeet]

The unemployment rate doesn't capture the scope of the issue. That's true in the US and Europe too. It doesn't capture people who are undermployed, locked into lower-paid positions, have to juggle multiple casual/part-time jobs and end up doing "gig" work, which is often sub-minimum wage once you factor in depreciation.

As for Japan, in particular, we have the Lost Decades [1], where the 1980s asset bubble collapsed and the economy stagnated for 20 years. Part of this was cultural too. For all of the faults of the US banking system at the time (eg the S&L crisis), the FDIC's approach is to take over failing banks whereas Japan let essentially bankrupt banks exist and gum up the economy. They are known as zombie banks [2]. You had zombie companies too and the entire thing largely came down to avoiding a loss of face by declaring bankruptcy, restructing or doing mass layoffs.

For over a decade, you had the "employment ice age" [3], which essentially destroyed GenX at the time they'd otherwise be starting families. This continued into the 2010s with the millenial generation.

Young people aren't stupid. They can look at their environment and increasingly realize they'll have no work-life balance, be lucky to find a good job, get paid enough to live on that job, won't own a house and can't afford to have a family. I call this a crisis in hopelessness. I also think this underpins how consumer spending has remained relatively strong. People are living for experiences rather than saving for a future because they have no future.

[1]: https://en.wikipedia.org/wiki/Employment_Ice_Age

[2]: https://en.wikipedia.org/wiki/Zombie_bank

[3]: https://en.wikipedia.org/wiki/Employment_Ice_Age