Sunday, August 2, 2009

Tokyo... back on top baby!

So Mercer (didn't Jenn used to work for them?) came out with their annual cost of living study and Tokyo is the most expensive city in the world for expats.  Wahoo!!! Take that Moscow.

New York serves as the basis (with a score of 100) and Tokyo came in at 143.7  Most of the change is due to currency movements, not actual increases in prices.  The yen/USD has gone from well over 110 to around 93 since we've been here.  I think it even dipped below 90 for a while last fall.  That's not a bad thing when you get paid in yen... it's like US dollars go on sale.

The flip side (for Japan that is) is that its exports become relatively more expensive.  We get a lot of questions about how the economy is here... unemployment is projected to go over 6% (which would be the highest since WWII), but is not nearly as bad as the 10% projected in the US.  But that number is probably lower than it should be.  There was a story last weekend (can't find a link now) indicating that nearly the same number of people were "over-employed" - meaning their employers would terminate/RIF/fire them if they could, but they are legally prohibited from doing so.

It is really hard to layoff/fire someone here.  As a result it is a big deal when it happens.  I need to catch some photos of this, but there are guys standing around doing a jobs that no one would ever do in the US.  For example, around construction sites there are usually 2 guys at each construction entrance to 1) make sure you don't go into the site, or 2) make sure you don't get run over by a truck.  Road patching crews have at least 2-3 guys at each end of the patch to direct traffic (I've never seen a bad road or a bad patch in Japan).  Pedestrian crossings of roads around the hotels have 2 guys (one on each side) telling you when it is safe to cross (as if you couldn't see the cars coming).  I have even seen a guy who's job it is to clean the phone booths.

It really is amazing and I think it (partially) explains why prices are higher here... there is a lot of extra labor cost being passed on to consumers.  I'm not sure it's always worth it, but it's the way it is here.  

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