Japan’s average annual working hours fell to a new low of 1,654.2 hours in fiscal 2024, according to a report released by the Cabinet Office in January 2026. This represents a decrease of 17.7 hours compared to the previous year, marking the second consecutive year of decline.
The 1,654.2-hour average is 257.4 hours lower than the peak recorded in fiscal 1995, when Japanese workers averaged 1,911.6 hours annually. The decline comes as the government continues to implement policies aimed at improving work-life balance and addressing long-standing concerns about overwork.
The transport and postal services sector experienced the most significant reduction in working hours, with a decrease of 38.4 hours. This change is directly attributable to stricter regulations on overtime, implemented to address chronic labor shortages and improve working conditions within the industry. The construction industry also saw a substantial decrease, with working hours reduced by 31.1 hours.
Still, not all sectors experienced a decline. The information and communications industry saw an increase in working hours, rising by 4.3 hours. Similarly, the finance and insurance industry recorded a slight increase of 2.2 hours. These increases suggest that certain sectors are facing pressures that require longer working hours, potentially due to increased demand or staffing challenges.
The current legal framework, established by the Labor Standards Act, limits standard working hours to eight hours per day and 40 hours per week. The 2019 Work Style Reform Act further refined these regulations, initially capping monthly overtime at 45 hours and annual overtime at 360 hours. A grace period was granted to industries facing labor shortages – including truck and bus drivers, construction workers, and physicians – but those allowances were tightened beginning in April 2024.
Current regulations set the annual overtime limit at 720 hours for construction workers and 960 hours for physicians and drivers, with exceptions for specific cases. The tightening of these regulations is intended to enforce compliance with the standard working hour limits and protect worker health and well-being.
Sanae Takaichi currently serves as Prime Minister of Japan, leading a cabinet that includes Shunichi Suzuki as Minister of Finance and Masahito Moriyama as Minister of Education, Culture, Sports, Science and Technology, according to the Prime Minister’s Office website. These key figures are overseeing the implementation of the work style reforms and related economic policies.
