Exec who coined ‘womenomics’ says it needs work

Kathy Matsui, the former vicechair of Goldman Sachs Group’s Japan unit, said the realisation of “womenomics,” the term that she coined about the economic benefits of empowering women, is still a work in progress.

“One challenge that Japan faces is whether we can increase the representation of women in leadership,” Matsui said. While the employment rate for women has increased, it’s still difficult for them to move from non-regular jobs to management positions, she said.

Matsui’s comments come after the Japanese government pressed companies listed on the Prime Market Index of the Tokyo Stock Exchange to raise the ratio of female executives to 30%. According to the Cabinet office, this year, women accounted for only 13% of the total number of executive positions at prime listed companies.

It is the employers’ responsibility to develop human resources and create an environment where women can play an active role, according to Matsui.

While the number of women in the workforce has risen more than 30% over the past 40 years, over 50% of them are part-time workers, according to data from the Ministry of Health, Labour and Welfare.

Matsui is known for her womenomics research which explored the economic benefits of boosting female participation in the Japanese labour market. Former Prime Minister Shinzo Abe’s policies were influenced by her work.

Matsui said the effort to increase women in leadership positions is “a matter of trial and error to find the best fit” for the organisation. With Japan’s ageing population and declining birthrate, diversity is essential for companies’ competitiveness as “friction leads to innovation, and we can detect risks that we did not anticipate”, she said.

The former chief Japan equity strategist who stepped down at the end of 2020 after 26 years with the firm, also witnessed the country’s change since the bubble era. –