Progress to Date
Industry and Economy
The gap in the industrial production index between the affected areas and other regions of Japan has been narrowing. Businesses that were damaged in the earthquake, such as those in the automotive industry, are now back on their feet and are set to return to globally competitive status.
Significant efforts have been made to restore local industry along the coastal areas worst hit by the tsunami. Small and medium sized enterprises are now on the path to recovery and will continue to be supported through government backing as well as additional investment from the private sector.
Economic indicators demonstrate that the local economy in disaster areas have recovered to approximately pre-disaster levels, although challenges do of course remain. In analyzing the Index of Industrial Production (IIP) for disaster areas, not surprisingly the impact of the crisis was sharper and lasted longer than it did in other areas. By the end of 2012, however, IIP had returned to pre-disaster levels and was in line with other areas. A similar rebound can be seen if we analyze other indicators, such as the estimated output for sample of corporations in tsunami affected areas.
The Reconstruction Agency plays an active role in encouraging and supporting local companies to meet with new partners in the private sector to maximize business and growth opportunities. In the agricultural sector, the restoration plan for farming is on schedule, aiming to have approximately 90% of farmland back in operation by 2014, while the fisheries sector is also on its way to a full-scale recovery. There have also been numerous initiatives that support revitalization of local economies through public-private partnerships, many of which are leveraging advanced technologies such as ICT and clean energy, as well as high-tech agricultural initiatives.
As a result of these efforts, the economy in three main affected prefectures is showing a positive employment trend, with the ratio of job offers to job seekers consistently higher than the national average since early 2012. This is particularly true when it comes to jobs in public welfare, construction, transportation industries, the service sector, as well as certain specialist skills jobs.
