ECONOMIC OVERVIEW OF TOHOKU REGION

2018

Tohoku Bureau of Economy, Trade and Industry

Conten t s

1. Overview of the Tohoku Region (1) Overview of the Tohoku Region ……………………………………………… 2 (2) Positioning of Tohoku as Shown in Major Economic Indicators ……………… 3

2. Economic Structure and Trends in the Tohoku Region (1) Gross Product ………………………………………………………………… 4 (2) Real Economic Growth Rate ………………………………………………… 5 (3) Population ……………………………………………………………………… 6 (4) Demographics ………………………………………………………………… 7 (5) The Number of Business Establishments (Private) …………………………… 8 (6) Industrial Production…………………………………………………………… 10 (7) Consumption …………………………………………………………………… 12 (8) Private Sector Capital Expenditures …………………………………………… 13 (9) Acquisition of Plant Locations ………………………………………………… 15 (10) Labor Force Population ……………………………………………………… 16 (11) Employment ………………………………………………………………… 17 (12) Business Entry and Exit Rates ……………………………………………… 18 (13) Internationalization 　　① Trade ……………………………………………………………………… 19 　　② Internationalization of Corporate Activities ……………………………… 21 　　③ International Arrivals/ Departures and Foreign Residents ……………… 22 (14) Tourism 　　① Domestic Tourism ………………………………………………………… 23 　　② Foreign Tourism ………………………………………………………… 24 (15) Reconstruction Related Trends ……………………………………………… 25

3. Industrial Structure of Tohoku (1) Manufacturing industry 　　① Overview ………………………………………………………………… 27 　　② National Share by Industry Sector ………………………………………… 28 　　③ Percentage Ratios by Industry Sector by Prefecture ……………………… 29 　　④ Shipment Value of Manufactured Goods in Major Industrial Sectors 　　　and Added Value Productivity by Region ………………………………… 30 　　⑤ Industrial Property Rights ………………………………………………… 31 (2) Commerce 　　① Overview ………………………………………………………………… 32 (3) Service industry ……………………………………………………………… 33 (4) Agriculture, Forestry, and Fisheries …………………………………………… 34

Note: Due to rounding up/ off, not all totals equal the sum of separate figures in tables and graphs throughout this document.

_ 1 _

Economic Indicators for the Tohoku Region

(1) Overview of the Tohoku Region

Item Major economic indicators Tohoku Data and source Item

Major economic indicators Tohoku Data and source

Total area < km2 >� (As of October 1, 2017) 66,947

National Land Area Survey of Prefectures and Municipalities (Geospatial Information Authority of Japan)

Income per capita <1,000 yen>� (FY 2015)

2,765 FY 2015 Annual Report on Prefectural Accounts(Cabinet Office)

Total population <1,000 people>� (As of October 1, 2017) 8,836

Population Estimate(Ministry of Internal Affairs and Communications)

No. of establishments� (As of June 1, 2016) 414,657 2016 Economic Census for

Business Activity(Ministry of Internal Affairs and Communications and Ministry of Economy, Trade and Industry)

No. of households <thousands>� (As of October 1, 2015) 3,468

2015 Population Census(Ministry of Internal Affairs andCommunications)

No. of employees� (As of June 1, 2016) 3,726

Nominal GRDP <100 million yen>� (FY 2015) 338,894 FY 2015 Annual Report on

Prefectural Accounts(Cabinet Office, Prefectural Public Documents)

Value of manufactured goods shipped <100 million yen>� (FY 2016)

170,185 2017 Census of Manufacture(Ministry of Economy, Trade and Industry)

(Primary industry)�<Note 2> 8,301Wholesale sales value<100 million yen>� (FY 2015) 175,705 2016 Economic Census for

Business Activity(Ministry of Internal Affairs and Communications and Ministry of Economy, Trade and Industry)

(Secondary industry)�<Note 2> 96,034 (Tertiary industry)�<Note 2> 233,860

No. of municipalities � (As of August 1, 2018)

77cities Number of Municipalities in Each Prefecture (Ministry of Inter-nal Affairs and Communications)

Retail sales value <100 million yen>� (FY 2015)

99,666 116towns34villages

< Note 1> For the areas of prefectures with undefined boundaries, reference values recorded in the National Land Area Survey of Prefectures and Municipalities (Geospatial Information Authority of Japan) are used.< Note 2> Figures by industry are before the deducation or addition of import duties, imputed interest, etc. on imported goods.< Note 3> Privately operated offices

Aomori

Akita

Iwate

MiyagiYamagata

Fukushima

1. Overview of the Tohoku Region

33,889.4billion yen (FY 2015)

Aomori13.4%

Iwate13.9%

Miyagi28.0%

Akita9.9%

Yamagata11.7%

Fukushima23.1%

Gross Regional Domestic Product (GRDP)(6.2% of national total)

17,185billion yen (FY 2016)

Aomori10.6%

Iwate13.9%

Miyagi24.2%Akita

7.3%

Yamagata15.7%

Fukushima28.4% 　

Value of Manufactured Goods Shipped(5.6% of national total)

17,570.5 billion yen (FY 2015)

Aomori10.5%

Iwate11.2%

Miyagi50.0%

Akita6.4%

Yamagata7.6%

Fukushima14.4%

Wholesale Annual Sales Value(4.3% of national total)66,947km2

(FY 2017)

Aomori14.4%

Iwate22.8%

Miyagi10.9%

Akita17.4%

Yamagata13.9%

Fukushima20.6%

Total Area (17.7% of national total)

8,836,000people

(FY 2017)

Aomori14.5%

Iwate14.2%

Miyagi26.3%

Akita11.3%

Yamagata12.5%

Fukushima21.3%

Total Population(7.0% of national total)

9,966.6billion yen (FY 2015)

Aomori14.4%

Iwate13.7%

Miyagi27.8%

Akita11.3%

Yamagata11.6%

Fukushima21.2%　　

Retail Annual Sales Value (7.2% of national total)

_ 3 __ 2 _

(2) Positioning of Tohoku as Shown in Major Economic Indicators

Although Tohoku’s population accounts for 7.0% of Japan’s population, Tohoku is below the na-tional level from the perspective of “GRDP” and “value of manufactured goods shipped.” In the manufacturing industry, Tohoku’s position is higher for “electronic parts, devices and electronic circuits” and “information and communications electronics equipment.”

0.0 5.0 10.0 15.0 20.0

No. of factory locations acquired [2017]

Value of public works contracted [FY 2017]

Housing starts [FY 2017]

New passenger car registrations [FY 2017]

Convenience store sales value [2017]

(Supermarkets)

(Department stores)

Department store/ supermarket sales value [2017]

Retail sales value [2015]

Wholesale sales value [2015]

(Information and communications electronics equipment)

(Transportation equimpment)

(Electronic parts, devices and electronic circuits)

(Foodstuffs)

Value of manufactured goods shipped [2016]

No. of employees [2016]

No. of business establishments [2016]

(Teritary industry)

(Secondary industry)

(Primary industry)

GRDP [FY 2015]

(Teritary industry)

(Secondary industry)

(Primary industry)

No. of employed persons [2017]

Total population [2017]

Total area [2017]

(%)

Percentage of the total population: 7.0%

17.7 17.7

7.0 7.0

6.9 6.9

14.9 14.9

7.4 7.4

6.4 6.4

6.2 6.2

15.215.2

6.56.5

6.06.0

7.47.4

6.66.6

5.65.6

7.27.2

15.615.6

2.62.6

14.814.8

4.34.3

7.27.2

6.36.3

3.23.2

7.87.8

6.96.9

7.77.7

6.36.3

16.016.0

9.49.4

_ 3 _(Note) The number of employed persons is based on the Labor Force Survey 2017, preliminary report (Ministry of Internal Affairs and Communications).

The Gross Regional Domestic Product (GRDP) is 33.9 trillion yen, or 6.35% of the national total.

● In fiscal year 2015, the Tohoku region’s nominal GRDP was 33,889.4 billion yen, up 2.2% from the previous year, and 6.35% of the national total. The GRDP increased in the prefecture of Aomori, Iwate, Miyagi and Yamagata.

● In fiscal year 2015, the Tohoku region’s nominal GRDP follows behind that of Kanto, Kinki, Chubu and Kyushu re-gions.

● By industry classification, primary industries account for 2.5%, secondary industries for 28.4%, and tertiary industries for 69.1%. Share of the construction industry rose to 10.5% due to reconstruction-related projects in the aftermath of the Great East Japan Earthquake of 2011, which is 4.6 points increased, comparing with the share in 2010, before the earthquake.

Changes in the Share of Industry Sectors in Nominal GRDP

(Note) The past figures in the Annual Report on Prefectural Accounts are revised retrospectively, together with the estimates for the latest fiscal year.(Note) Calculated nationwide figures when calculating the national ratio based on the National Accounts Calculation Source: Annual Report on Prefectural Accounts, Cabinet Office

(Note) The above shares are before the addition and deduction of duties, customs and so forth on imported goods.Source: Annual Report on Prefectural Accounts, Cabinet Office

Source: Annual Report on Prefectural Accounts, Cabinet Office

(1) Gross Product2. Economic Structure and Trends in the Tohoku Region

(%)

30,492.8 billion yen

33,889.4 billion yen

FY2010

FY2015

Secondary industry Tertiary industryPrimaryindustryPrimaryindustry

0 10 20 30 40 50 60 70 80 90 100

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2.5 17.8 10.5 3.7 10.8 3.6 10.9 4.8 2.8 2.4 6.1 6.9 4.3 8.6 4.2

0.1

0.20.2

0

50

100

150

200

250

OkinawaKyusyuShikokuChugokuKinkiChubuKantoTohokuHokkaido

300

19.033.933.9

249.4

64.686.486.4

29.929.914.2

45.0

4.1

Kyusyu　　Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki

Hokkaido HokkaidoTohoku　　Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima, Fukushima

Kanto 　Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, 　Kanagawa, Niigata, Yamanashi, Nagano, Shizuoka

Chubu　 　Toyama, Ishikawa, Gifu, Aichi, MieKinki　　　Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara, WakayamaChugoku 　Tottori, Shimane, Okayama, Hiroshima, YamaguchiShikoku 　Tokushima, Kagawa, Ehime, Kochi知

Okinawa 　 Okinawa

(Trillion yen) Nominal GRDP by Region

29.8 trillion yen

29.8 trillion yen

0

10

20

30

40

50 AomoriIwateMiyagiAkitaYamagataFukushima

FY2014FY2013FY2012FY2011FY20104.50

4.90

5.30

5.70

6.10

6.50

National Total (right axis)

6.11

6.04

6.326.37 6.396.39 6.35

(Trillion yen) (%)

31.3 trillion yen

32.3 trillion yen

33.2 trillion yen

7.2 6.6 7.0 7.5 7.83.7 3.7 3.7 3.9 3.83.3 3.3 3.3 3.3 3.47.9 7.8 8.5 8.8 9.24.0 4.1 4.3 4.5 4.64.4 4.4 4.4 4.3 4.4

33.9 trillion yen

7.84.03.7

9.5

4.74.5

30.5trillion yen

FY2015

Changes in Nominal GRDP

_ 5 __ 4 _

(2) Real Economic Growth Rate

The real economic growth rate was 0.6%, showing a positive growth for four consecutive years.

● The economic growth rate of Tohoku region in fiscal year 2015 was 0.6% (cf. 1.4% for Japan), continuing the trend of positive growth for four consecutive years, which was lower than that of Japan.

● With respect to the contribution made by different economic activities (industrial sectors) to the real economic growth rate for fiscal year 2015, finance/ insurance industry and health sanitation/ social business and specialized/ science technology/ business support service industry and wholesale/ retail made positive contributions of 0.3% and 0.2% re-spectively, while electricity, gas, water, waste disposal had a negative impact of minus 0.2%.

● In terms of changes in the real economic growth rate of each prefecture in Tohoku, Aomori, Miyagi and Yamagata recorded positive growth, while Akita and Fukushima recorded negative growth. The prefecture of Aomori and Ya-magata whose rate of growth was minus turned to plus, comparing with fiscal year 2014.

(Note 1) The figures for Japan are based on National Accounts of Japan in 2016 (2008SNA (System of National Accounts)).(Note 2) Japan’s figures for fiscal year 2017, 2018 and 2019 are taken from the Mid-Year Economic Projection for FY 2017 released by the Cabinet Office on July 6, 2018.(Note 3) The figures for Tohoku are based on 2011SNA (System of National Accounts) and the chain-linking method (chain-linking price to the calendar year 2011).(Note 4) The figures for Tohoku from FY 2016 onward are not included because the six Tohoku prefectures have not yet released them.(Note 5) Business-cycle peaks and troughs are based on the Cabinet Office’s reference dates for the business cycle.Source: Annual Report on National Accounts of Japan, and Annual Report on Prefectural Accounts, Cabinet Office

Source: Annual Report on Prefectural Accounts, Cabinet Office

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2019(FY)2018201720162015201420132012201120102009200820072006

(%)

Lehman Shock

Japan Tohoku

Great East Japan Earthquake

Peak: February 2008 Trough: March 2009 Peak: March 2012 Trough: November 2012

-1.8-1.8

-0.4-0.4

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-0.7-0.7

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0.50.5 0.80.82.62.6

-0.3-0.3

1.41.4 1.21.2

3.23.2

1.31.3

5.15.1

3.53.5

1.41.4 1.21.21.61.6 1.51.5 1.51.5

-0.3-0.3

Changes in the Real Economic Growth Rate in the Tohoku Region (chain-linking method)

Contribution to the Real Economic Growth Rate in FY 2015 by Economic Activity

(%) (Chain-linking method)

-0.5

0.0

0.5

0.30.3 0.30.3

0.10.10.10.10.20.2

0.20.2

0.10.1 0.10.10.00.0

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FukushimaYamagataAkitaMiyagiIwateAomori

2015(FY)262524232221

Aomori 2.7Miyagi 1.8Yamagata 1.3Iwate 0.0Akita -1.0Fukushima -1.2　

Changes in Real Economic Growth Rate by Prefecture

_ 5 _

(Note)The above estimates are based on medium assumptions of births and deaths.

(Note) From 2017 onward, unknown age has been apportioned by proportional division.

(3) Population

The productive-age population in Tohoku is projected to shrink by 35.1% between 2017 and 2040.

● In 2017, the Tohoku region had a population of 8.84 million, accounting for 7.0% of the national population (126.71 million people). Tohoku’s population started to decrease after peaking in 1995, and is projected to drop 23.8% be-tween 2017 and 2040 to 6.73 million, or 6.1% of the national population.

● In terms of population changes in three age groups between 2017 and 2040, the productive-age population (15 to 64 year-olds) and the child population (0 to 14 year-olds) are projected to decrease by 1.79 million and 390,000 respec-tively, while the aged population (aged 65 or older) is projected to increase by 800,000. The decrease in population along with the aging of the population is advancing ahead of the national average.

Source: (1955 to 2015) Population Census of Japan, the Statistics Bureau of the Ministry of Internal Affairs and Communications (2017) The Ministry of Internal Affairs and Communications Population estimate (From 2020 onward) Population Projection by Prefecture, the National Institute of Population and Social Security Research (Projection from March 2018)

Source: (1995 to 2017)Population Census of Japan, the Statistics Bureau of the Ministry of Internal Affairs and Communications (2017)The Ministry of Internal Affairs and Communications Population estimate (From 2020 onward) Population Projection by Prefecture, the National Institute of Population and Social Security Research (Projection from March 2018)

0

200

400

600

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1,000

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20402030202020172015201020052000199519851975196519550

2

4

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8

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Share of the national total

(%)(10,000 people)

10.410.4

933933

9.29.2

911911

8.28.2

923923

8.08.0

973973

7.87.8

983983

7.77.7

982982

7.57.5

963963

7.37.3

934934

7.17.1

898898

7.07.0

884884Aomori

1.28 millionAomori

1.28 million

1.26 million1.26 million

Miyagi2.32 million

Miyagi2.32 million

Akita1.00 million

Akita1.00 million

Yamagata1.10 millionYamagata

1.10 million

Fukushima1.88 millionFukushima1.88 million

6.96.9

861861

6.56.5

772772

6.16.1

673673

Iwate

Iwate

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

202520172015200519951985197519651955

(1955 = 100, index) (%)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Population

Population aging rate(right axis)

Tohoku 94.7Tohoku 94.7100.0100.0

Japan 140.7Japan 140.7

Tohoku 30.7Tohoku 30.7

Japan 27.7Japan 27.7

Tohoku 4.6Tohoku 4.6Japan 5.3Japan 5.3

(10,000 people)

0

200

400

600

800

1,000

1,200

205020402020201720152010200520001995

Child populationProductive-age populationAged population

648

169

634

200

606

223

571

238

523

260

511

272

484

281

408

286

331

279

166 148 133 120 106 102 96 78

63

Changes in the Population of the Tohoku Region

Population Trends of Three Age Groups Changes in the Population and the Population Aging Rate

_ 7 __ 6 _

(Note)The datum in 2017 are approximate value.Source: Annual Report on Demographic Statistics, Ministry of Health, Labour and Welfare

(Note) The number of arrivals/ departures does not include people who moved within the Tohoku region.Source: Annual Report on the Internal Migration in Japan Derived from the Basic Resident Registers, Ministry of Internal Affairs and Communications

(4) Demographics

Tohoku’s population shrank by 55,000 due to natural population decline, and by 28,000 due to net migration loss.

● In 2017, the number of live births in Tohoku region was 58,700 down 2,500 from the previous year, while there were 114,200 deaths, up 1,900 from the previous year. As a result, natural population decline increased from 51,000 people in the previous year to 55,500 people.

● In 2017, 78,700 people moved to Tohoku region, down 3,300 people from the previous year, and 107,000 people moved out of the region, down 400 people from the previous year. As a result, Tohoku’s net migration loss (arrivals minus departures) increased from 24,600 people in 2016 to 28,300 people.

● Among the 155,900 people who moved out of one of the six prefectures in the Tohoku region, 48,900 people moved into another prefecture in the region, while 107,000 people moved out of the region entirely, showing that about 70% of the people moved out of the region altogether. The destination of the largest portion of people moving within the Tohoku region was Miyagi Prefecture.

Source: Annual Report on the Internal Migration in Japan Derived from the Basic Resident Registers, Ministry of Internal Affairs and Communications

Comparison of Net Migration Loss in Tohoku Prefectures (2017)Prefecture/ region (moving in) Departures

totalAomori Iwate Miyagi Akita Yamagata Fukushima Tohoku total Outside Tohoku total Tokyo area onlyAomori - 1,965 3,220 864 346 577 6,972 16,557 10,129 23,529 Iwate 1,898 - 4,656 923 466 691 8,634 12,385 7,794 21,019

Miyagi 2,214 3,546 - 1,659 2,720 3,912 14,051 33,275 19,748 47,326 Akita 916 1,113 2,461 - 611 440 5,541 9,725 6,306 15,266

Yamagata 303 450 3,594 492 - 1,130 5,969 10,430 6,599 16,399 Fukushima 469 683 5,076 468 1,012 - 7,708 24,649 13,993 32,357 Tohoku total 5,800 7,757 19,007 4,406 5,155 6,750 48,875 107,021 64,569 155,896

Outside Tohoku total 11,654 8,901 27,057 6,541 7,380 17,212 78,745 Tokyo area only 6,373 5,183 14,391 4,018 4,199 9,018 43,182

Arrivals total 17,454 16,658 46,064 10,947 12,535 23,962 127,620

(people)

Pref

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(1,000 people) (1,000 people)

0

20

40

60

80

100

120

140

Number of deathNumber of live births Number of departuresNumber of arrivals

20172016201520142010200520000

20

40

60

80

100

120

140

2017201620152014201020052000

85.385.396.696.6

104.8104.8109.8109.8 110.7110.7 112.3112.3 114.2114.2

87.787.775.075.0

70.070.064.264.2 63.363.3 61.361.3 58.7 58.7

122.0122.0 124.1124.1

109.3109.3 104.2104.2 107.5107.5 106.6106.6 107.0107.0108.5108.5

92.092.086.486.4 86.886.8 85.785.7 82.182.1 78.778.7

Changes in the Number of Live Births and Deaths Changes in Arrivals and Departures

_ 7 _

(5) The Number of Business Establishments (Private)

Private business establishments in Tohoku represent 7.4% of the national total, while the number of employees accounts for 6.6% of the national total.

● In 2016, the Tohoku region had 414,657 private business establishments or 7.4% of the national total of 5,578,975 es-tablishments(7.3% in 2014). The number of establishments decreased by 2.3% from the previous survey conducted in 2014. In particular, Akita, Aomori and Yamagata saw significant decreases of 3.4%, 3.0% and 3.0% respectively.

● In 2016, the total number of employees in Tohoku was 3,726,422, down 0.9% from the previous survey conducted in 2014.

● In terms of the ratios of private business establishments by industry (major group category), wholesale and retail trade had the largest share at 26.6%, followed by accommodation and food services at 12.4% and construction at 10.9%. The tertiary industry had a significant share at 81.2%. In comparison to 2014, medical and welfare services increased their share by 0.3 points, while manufacturing and wholesale and retail trade decreased its share by 0.2 points.

(Note)The number of private establishments includes businesses whose business details are unclear.Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report), Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry

(Note)The number of business establishments by industry includes only those for which required values were obtained.Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report),

Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry

Number of private establishments Number of employees

2014 2016 2014 2016Comparison to 2014 (%)

Comparison to the national total (%)

Comparison to2014 (%)

Comparison to the national total (%)

Aomori 60,866 59,069 ▲ 3.0 1.1 508,770 498,988 ▲ 1.9 0.9Iwate 60,543 59,451 ▲ 1.8 1.1 536,313 525,264 ▲ 2.1 0.9

Miyagi 103,505 102,026 ▲ 1.4 1.8 1,010,795 1,006,886 ▲ 0.4 1.8Akita 51,156 49,432 ▲ 3.4 0.9 418,534 413,719 ▲ 1.2 0.7

Yamagata 58,292 56,551 ▲ 3.0 1.0 480,627 475,435 ▲ 1.1 0.8Fukushima 89,971 88,128 ▲ 2.0 1.6 803,372 806,130 0.3 1.4

Tohoku 424,333 414,657 ▲ 2.3 7.4 3,758,411 3,726,422 ▲ 0.9 6.6Japan 5,779,072 5,578,975 ▲ 3.5 100.0 57,427,704 56,872,826 ▲ 1.0 100.0

Number of Private Establishments and Employees by Prefecture

(%)

2014414,900

establishments

2016405,012

establishments

Secondary industry72,204 establishments

(17.8%) Tertiary industry 328,708 establishments(81.2%)Primary industry

4,100 establishments(1.0%)

Primary industry4,100 establishments

(1.0%)

0 100

Agriculture, Forestry and Fisheries 1.0

Agriculture, Forestry and Fisheries 1.0

Mining and quarrying of stone0.1

1.01.0 0.1 0.1 0.8

2.3

10.8 6.9 26.6 12.3 10.2 7.6 6.7

1.7 2.75.7 3.5Manufacturing7.1

Wholesale and retail26.8

Accommodations, eating and drinking services

12.3

Living-related and personal services

and amusement services10.3

SERVICES, N.E.C.6.8

Medical, health care and welfare

7.3

Construction10.9

Heat supply 0.1

Transport and postal services 2.4Information and communications 0.7

Scientific research, professional and technical services 3.5

Education, learning support 2.7

Compound services0.8

Finance and insurance 1.7

Real estate and goods rental and leasing 5.6

0.9

Changes in Ratios of Private Establishments by Industry (Major Group Category)

_ 9 __ 8 _

● In 2016, the total number of employees in the Tohoku region was 3,726,422 or 6.6% of the national total(6.5% in the previous survey). The ratio of employees in private business establishments by industry (major group category) was 1.3% for the primary industry, 26.2% for the secondary industry and 72.5% for the tertiary industry. In comparison to 2014, the ratio of employees in wholesale and retail trade decreased by 0.3 points, while the ratio in living-related services and leisure services decreased by 0.1 points.

(Note) The number of employees by industry for 2014 is as of July 1, 2014, and that for 2016 is as of June 30, 2016.Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report), Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry

(%)

20143,758,411persons

20163,726,422persons

0 100

Secondary industry975,825 establishments

(26.2%) Tertiary industry 2,702,499 establishments(72.5%)

Primary industry48,098 establishments

(1.3%)

Primary industry48,098 establishments

(1.3%)

9.8 16.3 21.0 8.5 13.2 7.7

5.3 2.4 2.52.0 2.3Manufacturing16.3

Wholesale and retail21.3

Accommodations, eating and

drinking services8.5

4.5SERVICES,

N.E.C.7.7

Medical, health care and welfare

13.1

Construction9.7

Agriculture, Forestry and Fisheries 1.3

Agriculture, Forestry and Fisheries 1.3

Mining and quarrying of stone0.1

Heat supply 0.5

Transport and postal services 5.4

Information and communications1.2

Scientific research, professionaland technical services 2.4

Education, learning support 2.6

Compound services1.3

Finance and insurance 2.4Real estate and

goods rental and leasing 2.0

Living-related and personal services and amusement services4.4

1.21.2 0.1 0.4 1.2 1.3

Changes in Ratios of Employees by Industry (Major Group Category)

_ 9 _

(6) Industrial Production

2017 showed a gradual recovery in industrial production.

● The Tohoku Region’s Index of Industrial Production (IIP) in 2017 increased by 3.6% from the previous year to 101.1 (2010=100).

● By quarter, the IIP (seasonally adjusted: 2010=100) in the 1ST quarter of 2017 rose 0.3% from the previous year to 100.2 mainly by transport machine industry with the new model car effect. In the 2nd quarter, the IIP rose 0.5% from the previous year to 100.7 mainly by machine industry for business, production and industrial use thanks to semicon-ductor related business performing well. In the 3rd quarter, the IIP declined 0.2% from the previous year to 100.5 mainly due to metal products industry decreasing water gates. In the 4th quarter, the IIP rose 1.8% from the previous year to 102.3 mainly thanks to electronic parts and devices industry for automotive and smartphone shifting in high level. 2017, all over the year, showed a gradual recovery in industrial production.

● In the first three months of 2018, the IIP declined 1.9% from the previous year to 100.4 mainly by the influence of electronic parts and device products industry related with decreasing in production of connector, which had been shift-ing steadily so far.

(Note) The IIP for Japan is prepared by the Ministry of Economy, Trade and Industry, while the IIP for Tohoku is prepared by the Tohoku Bureau of Economy, Trade and Industry. (Note) The IIPs for both Tohoku and Japan are revised based on the figures for 2010 as the base values. The IIP for Japan is annualized for the period from January 2017.Source: Prepared by the Tohoku Bureau of Economy, Trade and Industry

Annual IIP: original index; quarterly IIP: seasonally adjusted, 2010 = 100(IIP)

70.0

80.0

90.0

100.0

110.0

120.0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII I

2010

Production in Tohoku Production in Japan

2011 2012 2013 2014 2015 2016 20172018

Lehman ShockLehman Shock

85.785.789.389.3

82.082.0

100.2100.2

100.7

100.5100.5

102.3102.3

100.4100.4101.1101.1

Consumption tax hikefrom 5% to 8%.Consumption tax hikefrom 5% to 8%.

Great East JapanEarthquakeGreat East JapanEarthquake

Changes in the IIP

Annual IIP: original index; quarterly IIP: seasonally adjusted, 2010 = 100(IIP)

40.050.060.070.080.090.0

100.0110.0120.0130.0140.0

General-purpose, production and business oriented machineryInformation and communications electronics equipment

Electronic parts and devicesTransportation equipment

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII I

2010 2011 2012 2013 2014 2015 2016 2017

2018

128.7128.7 134.2134.2

112.0112.0108.7108.7

57.357.3

119.6119.6

108.8108.8

53.253.2

Changes in the IIP by Industry Sector

_ 11 __ 10 _

● In 2017, the IIP showed positive year-on-year growth for machine industry for business, production and industrial use (up 19.2%), and ceramic and stone products industry (up 11.4%) among others, while the IIP declined year-on-year for communications electronics equipment (down 13.4%), and metal products industry (down 8.4%).

● In terms of the level of contribution by industrial sector to the year-on-year IIP growth (3.6%), general-purpose, pro-duction and business oriented machinery, whose solid performance was aided by the demand for semiconductors, made a positive contribution (3.12). Electronic parts and devices, which both showed steady performance helped by the demand for in-car products and smartphones, also made a positive contribution (0.81). Meanwhile, information and communications electronics equipment, due to the decline in the production for mobile phones, "personal handy-phone systems" (PHSs), had a negative contribution (-0.77), to lower the overall IIP.

● By product category, the IIP of capital goods rose year-on-year by 14.8% (122.7) in 2017, thanks to contributions from semiconductor production equipment, industrial TV equipment and industrial robot and other equipment. Meanwhile, the IIP of construction materials dropped by 0.1% (107.8) and concrete block for revetment and others contributed to the decline. Durable consumer goods decreased by 8.3% (73.3). mobile phones, "personal handy-phone systems" (PHSs), interchangeable lens for camera and laptop computers contributed to the decline. Non durable consumer goods dropped by 4.1% (92.5). Sweets and other products caused the negative impact on IIP. The IIP of producer goods rose year-on-year by 4.1% (101.1). metal oxide semiconductor ICs (Logic), metal oxide semiconductor ICs (Memory), car audio and other products contributed to the decline. Connector, engine parts, fine ceramics (General structural material) and other products contributed to the ascending.

(Note) Weight: The share of each industrial sector in the total (the entire industrial production=10,000)(Note) Contribution: Breakdown of the percentage change of the entire production by industry sector. It shows the impact of any changes in the production of the relevant

sector on the entire production.Source: Prepared by the Tohoku Bureau of Economy, Trade and Industry

Source: Prepared by the Tohoku Bureau of Economy, Trade and Industry

General-purpose production and business oriented machineryCeramic, stone and clay products

Plastic productsTransportation equipment

Electronic parts and devicesIron and steel

Pulp, paper and paper productsOther manufacturingElectrical machinery

MiningNon-ferrous metals

Chemical and petroleum productsFoodstuffs and tabacco

Textile productsMetal products

Information and communication electronics products -13.4 -13.4

-8.4 -8.4

-7.1 -7.1

-5.0 -5.0

-2.0 -2.0

-0.8 -0.8

0.7 0.7

1.2 1.2

2.0 2.0

2.3 2.3

2.8 2.8

4.5 4.5

6.6 6.6

7.4 7.4

11.4 11.4

19.2 19.2 General-purpose production and business oriented machinery(1469.3)Electronic parts and devices(1687.4)

Transportation equipment(828.1)Ceramic, stone and clay products(375.6)

Plastic products(286.3)Other manufacturing(625.3)

Pulp, paper and paper products(321.5)Iron and steel(270.4)

Electrical machinery(434.6)Mining(20.2)

Non-ferrous metals(244.3)Textile products(248.6)

Chemical and petroleum products(807.8)Metal products(400.9)

Foodstuffs and tabacco(1061.8)Information and communication electronics products(917.9) -0.77 -0.77

-0.42 -0.42

-0.41 -0.41

-0.20 -0.20

-0.13 -0.13

-0.02 -0.02

0.00 0.00

0.06 0.06

0.07 0.07

0.07 0.07

0.12 0.12

0.21 0.21

0.41 0.41

0.63 0.63

0.81 0.81

3.12 3.12

( ) The figures in parentheses show the weight of the relevant industry sector.( ) The figures in parentheses show the weight of the relevant industry sector.

2017 Industry Sector Contribution (% point) to Year-on-year Production Growth (plus 3.6%)

2017 Year-on-year Growth in IIP (%)

(IIP) 2010 = 100

Capital goods Construction goods Consumer durables Consumer non-durables Producer goods

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2017201620152014201320122011201020092008

122.7122.7

107.8107.8101.1101.1

92.592.5

73.373.3

IIP Trend by Goods

_ 11 _

(7) Consumption

Consumption is in stepping state.

● In 2017, department stores and supermarkets in the Tohoku region recorded 1,230.6 billion yen in sales on an all-store basis, down 0.8% from the previous year for the first time in six years. Sales at existing stores shrank by 1.1% year-on-year, declining for five consecutive years.

● In terms of year-on-year comparison of sales by store type (on an all-store basis), department store sales decreased 1.9%, for a five consecutive year of decrease, and supermarket sales decreased 0.5% for the first time in seven years.

(Note)The sales value is partially expanded using the link coefficient (for the period up to June 2015). Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

20172016201520142013201220112010-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0(100 million yen) (Y to Y comparison,%)

Y to Y comparison (right axis)

Department storesDepartment stores

-0.5-0.8-1.9

SupermarketsSupermarkets

1,230.6 billion yen

Department stores only

Supermarkets only

Department Store/ Supermarket Sales Value and Year-on-year Changes (All Store Basis)

_ 13 __ 12 _

(8) Private Sector Capital Expenditures

For fiscal year 2018, the private sector increased its planned capital spending because the manufacturing industry was expected to greatly increase capital spending in Transport machinery and other areas.

● The private sector’s capital expenditures in the To-hoku region amounted to 605.5 billion yen (accord-ing to the June 2018 survey) in fiscal year 2018, up 19.7% from the previous year. The manufac-turing industry planned to increase its capital ex-penditures by 27.6% from the previous year. The non-manufacturing industry planned to increase its capital expenditures by 11.9% from the previous year (or a 6.1% increase in capital spending by the non-manufacturing industry, excluding electrici-ty). However, the actual capital expenditures in the Tohoku region for fiscal year 2017 turned out to be 23.0% higher than that of fiscal year 2016. This reflects a 9.7% year-on-year decrease in cap-ital spending by the manufacturing industry and a 35.6% increase by the non-manufacturing indus-try (or 22.1% increase in capital spending by the non-manufacturing industry excluding electricity).

● By industrial sector, the amount of capital expenditures by the manufacturing industry in fiscal year 2018 is projected to highly increase over the previous year in Transportation equipment and to increase over the previous year in Paper/ pulp and Foods, Electrical machinery. On the other hand, the amount of capital expenditures by the non-manufactur-ing industry is projected to increase in many sectors, such Electricity as Renewable energy, Transport and Real estate.

(Note) The published data were recalculated for the six Tohoku prefectures. The same shall apply hereinafter.Source: Survey on Planned Capital Spending in the Tohoku Region, Development Bank of Japan

Source: Survey on Planned Capital Spending in the Tohoku Region, Development Bank of Japan

(Note)The sales value is partially expanded using the link coefficient (for the period up to June 2015). Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

FY 2018FY 2017FY 2016FY 2015FY 2014FY 2013FY 2012Actual Actual Actual Actual Actual Actual Plan

Non-manufacturingManufacturing Non-manufacturing (excl. electricity)All industries

(%)

23.0 23.0

19.719.7

-9.7-9.7

27.627.6

35.635.6

11.911.922.122.1

6.16.1

170.0

120.0

70.0

20.0

-30.0

-80.00.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Percentage ratios in FY 2017Year-over-year change in FY 2018

Percentage ratios of capital spending by industry sector in FY 2017 (%)

Y to

Y c

hang

e in

FY

201

8 (%

)

Paper/pulp49.14.1

Textile- 50.0

0.1

Chemicals- 3.37.0 Petroleum

- 17.20.7

Ceramic clay and stone products

- 7.33.2

general machinery

- 2.16.1 Other manufacturing

- 31.1 3.9

Construction-11.6

2.4

Gas5.8 1.3

Leasing- 4.6 1.7

Non-ferrous metals

9.04.5

Iron and steel41.71.2

Electrical machinery

14.18.4

Precision machinery

41.5 1.4

Wholesale and retail trade

17.1 6.2

Real estate55.4 4.8 Transport

32.1 7.8

Electricity29.1 12.7

Comminication and information

52.8 3.6

Services- 38.3

5.2

Other non-manufacturing

- 76.2 4.8

Foods40.64.1

Transportation equipment

192.1 4.9

Year-on-year Changes in Capital Expendituresin the Tohoku Region

Capital Spending Trend (FY 2018 Plan)

_ 13 _

● By prefecture, the amount of capital expenditures in fiscal year 2018 in-dicates an increase of 13.8% for Ao-mori, an increase of 18.7% for Iwa-te, an increase of 38.0% for Miyagi, an increase of 4.4% for Akita, an increase of 11.2% for Yamagata and an increase of 13.5% for Fukushi-ma, which is planned to increase in all prefectures.

Source: Survey on Planned Capital Spending in the Tohoku Region, Develop-ment Bank of Japan

0

200

400

600

800

1000

1200

1400

1600

FY2018Plan

FY 2017Actual

FY2018Plan

FY 2017Actual

FY2018Plan

FY 2017Actual

FY2018Plan

FY 2017Actual

FY2018Plan

FY 2017Actual

FY2018Plan

FY 2017Actual

(100 million yen)

Aomori Iwate Miyagi Akita Yamagata Fukushima

Y o Y change ofFY 2018 plan

13.8%13.8% 18.7%18.7%

38.0%38.0%

4.4%4.4%

11.2%11.2%

13.5%13.5%

ManufacturingManufacturing

Non-manufacturing

Non-manufacturing

134134 171171 159159 209209419419

654654

181181 226226361361 388388

676676 816816234234 248248

160160 171171

672672

852852

170170 140140

206206 243243

519519541541

Changes in Capital Expenditures by Prefecture

_ 15 __ 14 _

(9) Acquisition of Plant Locations

Acquisition of plant locations has decreased for the first time in two years.

● In 2017 (from January to December), the number of acquisitions for plant locations (excluding electricity) in the To-hoku region decreased by 13 (or 12.1%) to 94 from the previous year, the first decreased in two years. The region’s share of the national total went down by 1.5 points to 9.3%.

● By prefecture, Fukushima had the largest number of acquisitions at 30 (16 in 2016), followed by Miyagi at 23 (47 in 2016), Yamagata at 21 (21 in 2016), Iwate at 11 (8 in 2016), Akita at 5 (9 in 2016) and Aomori at 4 (6 in 2016). Ac-quisitions for relocation in the coastal areas which were affected by the Great East Japan Earthquake, decreased by 4 to 11 from the previous year (such acquisitions are involved with plans to close down all or part of existing plants).

● The top four industrial sectors in terms of the number of land acquisitions for plants locations are: foodstuffs (23), Transportation equipment (10), Metal products and Production machinery (8) and Ceramic, clay and stone products (7). By prefecture, the number of acquisitions for foodstuffs in the highest in Miyagi (9), followed by Fukushima (6), while Transportation equipment in the highest in Yamagata (4).

(Note) Excludes the electricity industrySource: Survey of Factory Location Trends (2017 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry

(Note 1) The above figures correspond to the acquisition (including leasing) of land with a size of 1,000 square meters or larger for use to build a fac-tory, business office or research center for industries in manufacturing, the electricity industry (excluding hydraulic power plants, geo-thermal power plants and solar power plants(*)), gas or heat supply. They do not include the number of acquisitions of plant locations for vacant plants or for-lease plants that have increased after the Great East Japan Earthquake.

(Note 2) As for solar power plants out of the electricity industry are excluded from the surveys for 2015.Source: Survey of Factory Location Trends in Tohoku in 2017 (January to December, Preliminary Report), the Tohoku Bureau

of Economy, Trade and Industry

0

50

100

150

200

250

201720162015201420132012201120102009200820070

2

4

6

8

10

12(Acquisitions) （％）

AomoriIwateMiyagiAkitaYamagataFukushima

Share of national total (right axis)Share of national total (right axis)

9.2 9.2 8.5 8.5 8.6 8.6

10.0 10.0 10.3 10.3 11.4 11.4

11.0 11.0

8.7 8.7 8.0 8.0

10.8 10.8

9.39.3

163163

137137

7474 78788888

1071079191 8989 8484

1071079494 44

11112323 55

2121

3030

(Acquisitions)

AomoriIwateMiyagiAkitaYamagataFukushima

0 5 10 15 20 25

Beverages/ taacco/ feedstuffPrinting

Non-ferrous metalsIron and steel

Pulp/ paperChemical products

Lumber and wood productsElectrical machinery

Textile productsBusiness oriented machinery

Electronics/ devicesPlastic products

Ceramic, clay and stone productsProduction machinery

Metal productsTransportation equipment

Foodstuffs

Changes in Number of Acquisitions for Plant Locations

Distribution of Plant Location Acquisitions by Industry Sector and Prefecture (2017)

_ 15 _

(10) Labor Force Population

The number of employed persons was 4.52 million, and the number of unemployed persons was 130,000.

● In 2017, the number of employed persons in the Tohoku region was 4.52 million, which is above the figure for 2010, a year before the Great East Japan Earthquake. Meanwhile, the number of unemployed persons was 130,000 which was as low as the previous years, or the rate was 2.8%, which is below the figure for the previous year.

● By industrial sector, the largest number of employed persons is in the wholesale and retail sector, reaching 740,000 (16.4%), followed by manufacturing with 690,000 (15.3%), medical and welfare services with 560,000 (12.4%), con-struction with 460,000 (10.2%), and agriculture and forestry with 290,000 (6.4%).

● As for number of employed persons in the establishments, the number of employed women between the ages of 25 to 44 who have a young child (or children), shows a downward trend, but the number of employed persons (men and women) aged 65 and over is increasing. The ratio of both employed women between the ages of 25 to 44 who have a young child (or children) and employed persons (men and women) aged 65 and over gets higher.

Source: Labor Force Survey, Ministry of Internal Affairs and Communications

Source: Labor Force Survey, Ministry of Internal Affairs and Communications

(Note) The figure for 2011 is an estimate made as supplementary data due to the impact of the Great East Japan Earthquake.

Source: Labor Force Survey, Ministry of Internal Affairs and Communications Source: Labor Force Survey, Ministry of Internal Affairs

and Communications

420

430

440

450

460

470

480

201720162015201420132012201120102009200820072006

(10,000 persons)

473473469469

462462

450450 449449

442442446446

449449 449449447447

451451 452452

0

10

20

30

40

50

60

70

2017201620152014201320122011201020092008200720060.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0(10,000 persons) (%)

Tohoku (right axis) Japan (right axis)Number of unemployed persons

2424 2323 23232929 2727 2525

2121 19191616 1616 1414 1313

4.1 4.1 3.9 3.9 4.0 4.0

5.1 5.1 5.1 5.1 4.6 4.6 4.3 4.3

4.0 4.0 3.6 3.6 3.4 3.4

3.1 3.1 2.8 2.8

4.8 4.8 4.7 4.7 4.7 4.7

6.0 6.0 5.7 5.7 5.3 5.3

4.5 4.5 4.0 4.0

3.6 3.6 3.6 3.6 3.1 3.1 2.8 2.8

(10,000 persons) (%)

Men and women aged 65and over in Tohoku (right axis)

Women aged 25 to 44 in Tohoku (right axis)

Employed men and women aged 65 and over in Tohoku

Employed women aged 25 to 44 in Tohoku

0

10

20

30

40

50

60

70

80

90

20172012200720020

10

20

30

40

50

60

70

80

9080.0 80.0

23.2 23.2 42 42 42 42 4545

6363

83 83 80 80 78 78 76 76

Agriculture and

Forestry 29

Fisheries 4 Mining and quarrying of stone 0

Construction 46

Manufacturing 69

Heat supply 3

Information and communications 5

Transport and postal services 22

Wholesale and retail74

Finance and insurance 10Real estate and goods rental and leasing 5

Scientific research, professional and technical services 11

Accommodations, eating and drinking services 24

Living-related and personal services 16

Education, learning support 21

Medical, health care and welfare

56

Compound services 6SERVICES

27

Government service producers 19

Industries unable to classify 4

4.52 million persons in total

<10,000s of people>

Number of Employed Personsin the Establishments

Number and Ratio of Employed Persons(Women Aged 25-44, and Men and Women Aged 65 and Over)

Changes in the Unemployment Rate and the Number of Unemployed Persons

Number of Employed Persons byIndustrial Sector (2017)

_ 17 __ 16 _

(11) Employment

Both the new job openings-to-applicants ratio and active job openings-to-applicants ratio remain high.

● In 2017, the annual average for active job openings-to-applicants ratio in Tohoku region was 1.44, which was nearly as high as the national average of 1.50. In addition, the new job openings-to-applicants ratio in Tohoku was 1.99, which was also nearly as high as the national average of 2.24.

● The active job opening-to-applicants ratio in the period of I, 2018 in Tohoku was 1.53, which is the highest since the first year these statistics were collected. The job market continues to improve.

Source: Employment Referrals for General Workers, Ministry of Health, Labor and Welfare

0.2

0.7

1.2

1.7

2.2

2.7

IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII I

Japan (new job openings-to-applicants ratio)

Tohoku (new job openings-to-applicants ratio)

Japan (active job openings-to-applicants ratio)

Tohoku (active job openings-to-applicants ratio)

2012 2013 2014 2015 2016 20172018

2017 averageJapan (new job openings-to-applicants ratio) 2.24Tohoku (new job openings-to-applicants ratio) 1.99Japan (active job openings-to-applicants ratio) 1.50Tohoku (active job openings-to-applicants ratio) 1.44

(Double)

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Aomori

Iwate

Miyagi

Akita

Yamagata

Fukushima

2012 2013 2014 2015 2016 2017

2017 average

Aomori　 1.24Iwate　 1.40Miyagi　 1.59Akita　 1.35Yamagata 1.54Fukushima 1.45

(Double)

2018

IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII IVIIIIII I

Changes in the Active Job Openings-to-Applicants Ratio in Tohoku and Japan

Active Job Openings-to-Applicants Ratio by Prefecture

_ 17 _

(12) Business Entry and Exit Rates

Both the business entry rate and the business exit rate decreased.

● According to employment insurance statistics in fiscal year 2017, the business entry rate in the Tohoku region was 4.05%, which was decrease for the first time in two years. Since fiscal year 2014, the business entry rate which had increased since the Great East Japan Earthquake has remained almost flat. The business entry rate for Japan has de-creased for the first time in seven years to reach 5.55%.

● In Tohoku, the business exit rate was 3.24%, which was decreased for the first time in three years. The national rate was 3.49%.

● The business entry rate by prefecture was higher than the previous year in Akita and Yamagata in fiscal 2017, and oth-er prefectures were decreased. In terms of the difference between the business entry rate and the business exit rate in fiscal year 2017, the business entry rate exceeded the business exit rate by 2.06 points for Japan and by 0.81 points for Tohoku. By prefecture, the business entry rate exceeded the business exit rate in Miyagi, Yamagata and Fukushima, while the business exit rate was higher than the business entry rate in Aomori, Iwate and Akita.

Source: Monthly and Annual Reports on Employment Insurance Services, Ministry of Health, Labor and Welfare

(Note) Plotting (-) on each bar indicates the difference in rate between business entry and exit.

The business entry and exit rates are calculated using the following formulas based on data from the Annual Reports on Employment Insurance Services:Business entry rate= Number of business establishments newly applying for employment insurance in the relevant business year / Number of business establishments covered by employment insurance as of the end of the previous business year x 100 (%)Business exit rate= Number of business establishments that ceased to be covered by employment insurance in the relevant business year / Number of business estab-lishments covered by employment insurance as of the end of the previous business year x 100 (%)*The business establishments covered by employment insurance refer to business establishments that have an insurance relationship for employment insurance pur-suant to the provisions of the Act on the Collection, etc., of Insurance Premiums of Labor Insurance. An existing business establishment does not become a business establishment covered by employment insurance until it hires an employee.Source: Monthly and Annual Reports on Employment Insurance Services, Ministry of Health, Labor and Welfare

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

20172016201520142013201220112010

(%)

Business entry rate in JapanBusiness entry rate in Japan

Business exit rate in JapanBusiness exit rate in Japan

Business entry rate in TohokuBusiness entry rate in Tohoku

Business exit rate in TohokuBusiness exit rate in Tohoku

4.51 4.51

4.49 4.49 4.58 4.58

4.80 4.80 4.86 4.86

5.18 5.18

5.60 5.60 5.55 5.55

4.09 4.09

3.90 3.90

3.82 3.82 4.04 4.04

3.71 3.71 3.79 3.79

3.52 3.52

3.49 3.49 3.91 3.91

4.81 4.81 4.96 4.96

4.74 4.74 4.24 4.24 4.22 4.22 4.27 4.27 4.05 4.05

4.00 4.00 3.96 3.96

3.47 3.47 3.76 3.76

3.17 3.17 3.32 3.32

3.60 3.60

3.24 3.24

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

20172016201520142013201220112010

AomoriAomori

IwateIwate

MiyagiMiyagi

AkitaAkita

YamagataYamagata

FukushimaFukushima

3.49 3.49

3.32 3.32

3.21 3.21 3.14 3.14

5.65 5.65

5.19 5.19

2.70 2.70 2.80 2.80

3.40 3.40

3.43 3.43

5.30 5.30

4.85 4.85

(%)

5.00

4.00

3.00

2.00

1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

FukushimaYamagataAkitaMiyagiIwateAomoriTohokuJapan

(%)

Business exit rate

Business entry rate

5.55 5.55

4.05 4.05 3.32 3.32 3.14 3.14

5.19 5.19

2.80 2.80 3.43 3.43

4.85 4.85

3.493.49 3.243.24 3.393.39 3.403.40 3.063.06 3.393.39 3.233.23 3.143.14

2.06 2.06

0.81 0.81

-0.07-0.07 -0.27-0.27

2.13 2.13

-0.59-0.59

0.21 0.21

1.71 1.71

Changes in Business Entry and Exit Rates in Japan and Tohoku

Business Entry and Exit Rates in FY 2017

Changes in Business Entry Rate in Tohoku by Prefecture

_ 19 __ 18 _

(13) Internationalization① Trade

Exports increased for the first time in two years, and imports increased for the first time in three years.

● In 2017, exports (Note) from the Tohoku region increased for the first time in two years for a total of 708.7 billion yen, an increase of 15.4% from the previous year. This was attributable to an increase in the export of Motors, Phar-maceuticals etc. despite a decrease of Ships etc. Meanwhile, imports (Note) increased for the first time in three years for a total of 1594.4 billion yen, an increase of 22.8% from the previous year. This was attributable to an increase of crude oil/ raw oil/ coal despite a decrease of Inorganic compound. The Tohoku region accounted for 0.9% of Japan’s exports (0.9% in 2016) and 2.1% of its imports (2.0% in 2016).

● By port, Sendai-Shiogama Port handles the largest volume of goods in the Tohoku region based on the value of ex-ports, followed by the Port of Hachinohe and Sakata Port. Based on the value of imports, Sendai-Shiogama Port ranked first, followed by Onahama Port and the Port of Hachinohe. In comparison with the previous year, Soma Port and Sakata Port etc. increased in exports, Sendai-Shiogama Port, Onahama Port etc. increased in imports.

Source: List of the Value of Trade by Port in Japan, Kobe Customs, Ministry of Finance

(Note) The value of cargo that passed through export and import custom clearances at the custom offices in the six Tohoku prefectures.Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance

2016/ 2017 Trade Value by Port in the Tohoku Region

Changes in the Value of Exports and Imports Handled in the Tohoku Region

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

201720162015201420132012201120102009200820070.0

0.5

1.0

1.5

2.0

2.5(100 million yen) (%)

Share of Japan’s imports (right axis)Share of Japan’s exports (right axis)Exports Imports

8,284 8,284 7,655 7,655

5,003 5,003

6,484 6,484

3,886 3,886 4,425 4,425 5,521 5,521 6,344 6,344 6,561 6,561 6,142 6,142

7,087 7,087

15,548 15,548

16,467 16,467

10,668 10,668

13,021 13,021

7,949 7,949

14,309 14,309

17,406 17,406 18,742 18,742

15,176 15,176 12,978 12,978

15,944 15,944

0.9 0.9 0.9 0.9 0.9 0.9

1.9 1.9 2.0 2.0

2.1 2.1

01,0002,0003,0004,000

Onahama Port

Soma Port

Sakata Port

Akita Port/ Funagawa Port

Sendai Airport

Sendai-Shiogama Port

Ishinomaki Port

Port of Ofunato

Kamaishi Port

Miyako Port

Port of Hachinohe

Aomori Port

0 2,000 4,000 6,000 8,000(100 milliion yen) (100 milliion yen)

Exports20162017

Imports20162017

46 46

1,256 1,256

39 39

95 95

95 95

62 62

2,593 2,593

87 87

514 514

644 644

424 424

284 284

148 148

1,486 1,486

5 5

30 30

41 41

397 397

5,477 5,477

59 59

1,573 1,573

713 713

768 768

2,278 2,278

57 57

1,238 1,238

44 44

94 94

102 102

103 103

2,634 2,634

133 133

673 673

879 879

673 673

452 452

229 229

1,609 1,609

11 11

53 53

33 33

427 427

6,599 6,599

44 44

1,685 1,685

825 825

1,133 1,133

3,284 3,284

_ 19 _

● Major destinations of Tohoku’s exports are the United States (U.S.), the People’s Republic of China (PRC) and the Republic of Korea (POK), while the major sources of imports are Australia, the PRC and the U.S.

● Major export items include motors, office equipment and rubber products, while import items include metallic ores/ scraps, crude oil/ raw oil, and coal.

● Approximately 33.4% of marine export cargo comprised of products produced in the Tohoku region, was loaded in international containers at the port of Yokohama, while 29.2% was loaded at the Port of Tokyo. This indicates that a large proportion of cargo was loaded at ports located outside the Tohoku region. 19.1% was loaded at Sendai-Shiog-ama Port. Meanwhile, 32.8% of marine import cargo comprised of goods to be consumed in the Tohoku region, were unloaded at the Port of Tokyo, 22.4% at Sendai-Shiogama Port and 17.1% at the Port of Yokohama.

(Note) The survey is concluded once every five years to gain a grasp of the movements of international containers in detail.Source: FY 2013 Survey Results of Japan’s Export and Import Container Cargo Movements, Ports and Harbors Bureau, Ministry of Land, Infrastructure, Transport and Tourism

Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance

U.S.24.3%

PRC20.3%

ROK 7.2%Singapore4.5%

Thailand 4.5%Taiwan 4.3%

Philippines 4.2%

UK 3.6%Netherland 3.5%

Indonesia 3.1%

Other20.4%

Australia15.5%

PRC12.4%

U.S.11.4%

Saudi Arabia 4.8%United Arab Emirates (UAE) 4.7%

Indonesia4.7%

Russia 4.7%Kuwait 4.6%

Chile 4.2%ROK 3.2%

Other29.9%

Motors13.0% Office equipment

9.4%

Rubber products 8.5%

Iron and steel 8.1%

Ships 5.3%Paper/ paper products 4.6%

Metallic ores/ scrap 4.3%Memory devices (including those containing recorded data) 3.2%

Pump / centrifuge 3.1%

Seafood/ seafood products 2.9%

Other37.5%

Metallic ores/ scrap

17.4%

Crude oil / raw oil17.1%

Coal15.8%

Liquefied natural gas 4.1%Seafood / seafood products4.1%

Liquefied petroleum gas 3.8%

Wood and cork products (excl. furniture) 3.1%

Grains and entraining products 3.0%

Petroleum products 2.6%

Organic compound2.4% Other

26.6%

Port of Yokohama33.4 %

Port of Tokyo29.2 %

Sendai-Shiogama Port19.1 %

Akita Port5.9 %

Port of Hachinohe 5.4 %

Other ports in the Tohoku region 2.4 %Other ports outside the Tohoku region 4.6 %

Port of Tokyo32.8 %

Sendai-Shiogama Port22.4 %

Port of Yokohama17.1 %

Akita Port12.3 %

Port of Hachinohe 4.1 %

Other ports in the Tohoku region 5.8 %

Other ports outside the Tohoku region 5.4 %

2017 Major Destinations of Exports(Countries/ Regions)

2017 Percentage Ratios of Exports Items by Value

Ports of Loading for Export Cargo (tons)(November 2013) (Place of production: Tohoku)

Ports of Loading for Import Cargo (tons)(November 2013) (Place of production: Tohoku)

2017 Major Destinations of Imports(Countries/ Regions)

2017 Percentage Ratiosof Import Items by Value

_ 21 __ 20 _

② Internationalization of Corporate Activities

The number of overseas subsidiaries of companies headquartered in the Tohoku region increased.

● As for companies that have headquarters in Tohoku in FY 2015 (1,633 responding companies), there were 108 compa-nies holding subsidiaries overseas and affiliates overseas, while the number of subsidiaries overseas was 243 compa-nies. Looking at the breakdown of the country of residence, China is the largest with 94 companies (composition ratio 38.7%), followed by Asia (excluding China) 92 (37.9%) and North America 28 (11.5%).

● Also, looking at overseas transactions by companies with headquarters in the Tohoku region (FY2015), the export value of goods (the number of responding companies: 169 companies) was 406.9 billion yen. Meanwhile, the import value of goods (the number of responding companies: 175 companies) was 368.5 billion yen.

● As for the foreigners staying in the Tohoku region at the end of 2017, the number of those whose status of residence is “skill training” was 12,962, which was an increase by 16.6% compared to the end of the previous year.

(Note) As a result of the amendment of Immigration Control and Refugee Recognition Act in July 2012 and introduction of the new residence management system, it is not possible to simply compare 2011 and 2012.Source: Statistics on Foreign Resident in Japan (formerly Statistics on Registered Aliens), Ministry of Justice

* The number of the status of residence as “technical training”

(Note1) The Basic Survey of Japanese Business Structure and Activities targets companies that own a business establishment engaging in mining, manu facturing, electricity and gas, wholesale, retail, services or other businesses with 50 or more employees and a capital equity investment amounting to 30 million yen or more.

(Note2) In principle, the subsidiary overseas is a company with a voting right ownership ratio of more than 50%, and the affiliates are 20 to 50% of the company.Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry

0

50

100

150

200

250

300

2015(FY)(Year-end)

20142013201220112010

Asia (excl. China) EuropeNorth America Other regions

China

The number of companies holding overseas subsidiaries

(Companies)

180180

225225242242

219219

104104

231231

108108

243243

6767 8686 8888 8484 9191 9292

72729090 9797

85859191 94941616

1717 17171414

1313 1616

2323

2222 25252121

2323 2828

22

10101515

15151313

1313

(100 million yen)

2,000

3,000

4,000

5,000

2015(FY)20142013201220112010

Value of ImportsValue of Exports

3,378 3,378

4,056 4,056

4,468 4,468

4,139 4,139 4,032 4,032 4,069 4,069

3,622 3,622

3,382 3,382 3,527 3,527

3,785 3,785 3,505 3,505

3,685 3,685

(%)(Persons)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

20172016201520142013201220112010 0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Aomori Iwate Miyagi Akita Yamagata Fukushima

National Total (right axis)

4,932 4,932 4,942 4,942 5,828 5,828

6,641 6,641 7,782 7,782

8,988 8,988

11,120 11,120

12,962 12,962

1,6501,650

2,5532,553

3,2833,283

8478471,5631,563

3,0663,066

4.94.9

3.53.53.83.8

4.34.34.64.6

4.74.74.94.9 4.74.7

(Year-end)

Changes in the Number of the Foreigners as “Skill Training”

Changes in the Number of Overseas Subsidiaries/ Affiliates Owned by Companies Headquartered

in the Tohoku Region

Changes in Value of Exports and Imports by Companies Headquartered

in the Tohoku Region

_ 21 _

③ International Arrivals / Departures and Foreign Residents

The number of immigrants who used ports and airports in Tohoku has greatly increased.

● The total number of people arriving and departing through ports and airports in Tohoku in 2017 was 409,947, which was 57% increase from 261,136 in 2016. The number of foreigners entering and departing greatly increased, exceeding 2010 for the first time after the Great East Japan Earthquake. The number of immigrants entering Sendai Airport (44.3% increase over the previous year) and Aomori Airport (110.1% increase) greatly increased. The nationwide ratio of the number of people entering and leaving the port in Tohoku and the airport was 0.5% (0.3% in the previous year).

● There were 55,646 foreign residents in the Tohoku region as of the end of December 2017, which was 6.4% increase from the previous year. By nationality, there were 16,079 Chinese residents, representing 28.9% of the total, followed by residents from the ROK/ Korea (9,212 people, or 16.6%), those from Vietnam (8,538 people, or 15.3%) and those from Philippines (7,337 people, or 13.2%). Recently, the number of foreign residents from Vietnam has been rapidly increasing.

(Note 1) “Other Asian countries” for 2010, 2011 and 2012 represent Asia counties excluding China and the ROK/ North Korea.(Note 2) Following the revisions to immigration Control and Refugee Recognition Act and the introduction of a new management system for foreign residents in Japan in July

2012, the Alien Registration Act was abolished. Accordingly, the above statistics cover “medium- to long-term residents” and “special permanent residents” who are managed under the new foreign resident management system (hereinafter, collectively referred to as “foreign residents”). As a result of these changes to the system, the figures for foreign residents under the new system and registered aliens under the old system do not match. It is therefore impossible to simply compare the number of foreign residents and the number of people who used to be registered under the alien registration system.

Source: Statistics on Foreign Resident in Japan (formerly Statistics on Registered Aliens), Ministry of Justice

Source: Annual Report on Overseas Arrivals and Departures Statistics, Ministry of Justice

100200300

2017

2016

2015

2014

2013

2012

2011

2010

0 100 200 300(1,000 people)No. of departures No. of arrivals

JapaneseNon-Japanese nationals/others Japanese Non-Japanese nationals/others

117117

3636

4040

5252

5454

7272

7575

139139

112112

4949

9393

7979

7878

6363

5454

6565

113113

4949

9191

8080

7373

6060

5353

6262

111111

3333

4242

5454

6060

7676

7979

143143

224224

8282

133133

133133

132132

137137

132132

205205

229229

8585

133133

131131

132132

135135

129129

205205

20,00040,00060,000

2017

2016

2015

2014

2013

2012

2011

2010

0 20,000 40,000 60,000

9,5889,588

7,3357,335

9,2339,233

11,28911,289

14,12014,120

19,62919,629

23,18423,184

27,35327,353

16,63716,637

16,99416,994

18,49118,491

17,47317,473

16,90316,903

16,21416,214

17,11617,116

17,88917,889

16,61216,612

16,92116,921

18,40818,408

17,42217,422

16,91616,916

16,25916,259

17,08817,088

17,87617,876

9,5899,589

7,2817,281

9,3099,309

11,38511,385

14,29414,294

19,84219,842

23,38623,386

27,60327,603

26,20126,201

24,20224,202

27,71727,717

28,80728,807

31,21031,210

36,10136,101

40,47540,475

45,48045,480

26,22526,225

24,32924,329

27,72427,724

28,76128,761

31,02431,024

35,84235,842

40,30040,300

45,24245,242

(1,000 people)No. of departures No. of arrivals

JapaneseNon-Japanese nationals/others Japanese Non-Japanese nationals/others

Changes in International Arrivals and Departures through Ports and Airports in Tohoku

Changes in the Number of International Arrivals and Departures (Japan)

(No. of people) (%)

YOY change (right axis)China ROK/ North Korea Other Asian countries Philippines Vietnam NepalIndonesia Europe North America South America Other regions

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

20172016201520142013201220112010-60.0

-50.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

48,732 48,732

42,857 42,857 42,691 42,691 44,349 44,349 46,014 46,014

48,683 48,683 52,298 52,298

55,646 55,646 -4.6 -4.6

-12.1 -12.1

-0.4 -0.4

3.9 3.9 3.8 3.8 5.8 5.8

7.4 7.4 6.4 6.4

China16,079 China

16,079

ROK/ North Korea9,212

ROK/ North Korea9,212

Other Asian countries5,189

Other Asian countries5,189

Philippines7,337

Philippines7,337

Vietnam8,538

Vietnam8,538

Nepal 2,188 Nepal 2,188 Indonesia 1,571 Indonesia 1,571 Europe 1,510 Europe 1,510 North America 2,388 North America 2,388 South America 839 South America 839 Other regions 795 Other regions 795

(Year-end)

Changes in the Number of Foreign Residents (Number of people who used to be registered under the now-obsolete alien registration system) Note

_ 23 __ 22 _

(14) Tourism

Source: Graphic Illustration of Transport in Tohoku/Statistics on Tourism in Each Prefecture, Tohoku District Transport Bureau

Note: For the period from January to March 2010, the number of tourists represents the number of those staying at accommodation facilities with staff of 10 or more employees.

Source: Statistics on Overnight Trips, Japan Tourism Agency

Note 1 : Tourism consumption refers to the total value of consumption by inbound tourists visiting the relevant prefecture(s).

Note 2 : The unit value of tourism consumption refers to tourism consumption per inbound tourists visiting the relevant prefecture(s) during one visit.

Note 3: The Fukushima prefecture in 2016 is being calculated.Source: Tourist entrance statistics, Japan Tourism Agency

① Domestic Tourism

The number of inbound tourists to the Tohoku region has been increasing over the past four years.

● The number of inbound tourists to the Tohoku region decreased considerably in 2011 after the Great East Japan Earth-quake, but recovered to 251.6 million in 2015.

●In 2017, the total number of overnight guests in each prefecture increased in Miyagi and Fukushima.● Compared to the previous year, overall consumption by tourists and consumption per capita increased in 2016 in Ao-

mori and Miyagi while these figures decreased in Iwate and Akita. In Yamagata, consumption per capita increased.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

201720162015201420132012201120100

100,000

200,000

300,000

400,000

500,000

600,000

700,000(Thousand people) (Thousand people)

Aomori Iwate MiyagiAkita Yamagata Fukushima Japan (right axis)

4,6244,624

6,0766,076

9,9819,981

3,3463,346

5,2425,242

10,85810,858

509,597509,597

(100 million yen) (Yen/ per capita per visit)

Unit value of tourism consumption (right axis)Tourism consumption

2016

2015

2014

2016

2015

20140

500

1,000

1,500

2,000

2,500

0

4,000

8,000

12,000

16,000

20,000

Aomori Iwate Miyagi Akita Yamagata Fukushima

9,196 9,196

11,221 11,221

7,891 7,891

6,041 6,041

8,475 8,475

13,400 13,400

1,092 1,092 951 951 1,950 1,950 680 680 1,503 1,503 1,989 1,989

2016

2015

2014

2016

2015

2014

2016

2015

2014

2016

2015

2014

0

50

100

150

200

250

300

201520142013201220112010-30.0

-20

-10

0

10

20

30

(Million people) (%)

Y o Y change (right axis)

3.2

57.2

40.4

43.9

61.3

29.0

34.2

35.2

35.2

29.4

43.2

22.7

31.5

44.5

38.0

31.7

52.1

27.4

33.0

48.3

39.8

32.1

55.7

28.8

33.2

46.9

44.6

32.1

57.4

28.9

34.0

Fukushima50.3

Yamagata44.5

Akita31.9

Miyagi60.7

Iwate29.0

Aomori35.2

265.9265.9

197.2197.2

226.6226.6238.0238.0 243.8243.8 251.6251.6

Changes in the Number of Inbound Tourists to the Tohoku Region

Changes in the Total Number of Overnight Guests in Each Prefecture

Changes in Tourism Consumption in Each Prefecture (Japanese/ tourism)

_ 23 _

② Foreign Tourism

The total number of international overnight visitors in Tohoku increased, exceeding that of the national rise.

● In 2017, the total number of international overnight visi-tors in Tohoku was 1,066,000. Compared to the previous year, it was an increase of 46.9%, exceeding that of the national rise of 14.8%.

● By nationality, the number of inbound overnight visitors from Taiwan increased rapidly after the Great East Japan Earth-quake, reaching 390,000, fol-lowed by China with 160,000, a large increase of 87.6% com-pared to the previous year.

● In a comparison of Tohoku and Hokkaido, consumption by in-ternational inbound visitors in 2015 shows an upward trend in

Tohoku with 22.298 million yen, but is less than one-twelfth that of Hokkaido which has succeeded in attracting inter-national visitors to the area. Spending per capita in Tohoku was 48,474 yen, which is a decrease of 33.5% compared to the previous year, and is about 30% that of visitors to Hokkaido.

(Note) For the period from January to March 2010, the number of visitors represents the number of those staying at accommodations with staff of 10 or more employees.

Source: Statistics on Overnight Trips, Japan Tourism Agency

(Note) The number of visitors represents the number of those staying at accommo-dation facilities with staff of 10 or more employees.

Source: Statistics on Overnight Trips, Japan Tourism Agency

(Note 1) Tourism consumption refers to the total sum spent by inbound visitors to the relevant prefecture(s).

(Note 2) The unit value of tourism consumption refers to consumption per inbound visitor to the relevant prefecture(s) during a single visit.

Source: Statistics on Inbound Tourists, Japan Tourism Agency

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

20172016201520142013201220112010

(1,000 people)

AmericaTaiwanHong KongChinaKorea

85,400 85,400

China160,180

China160,180

39,280 39,280

94,610 94,610 127,490 127,490

180,360180,360

60,85060,850

248,410 248,410

Taiwan396,740 Taiwan

396,740

10,00020,00030,00040,00050,00060,00070,00080,00090,000

0

200

400

600

800

1,000

1,200

20172016201520142013201220112010

AomoriIwateMiyagiAkitaYamagataFukushima

Japan in total

78.988.267.0

199.3

132.0

160.2

130.3117.9104.7

264.5

187.9

260.3

577.1577.1

210.0210.0275.7275.7

349.8349.8 402.1402.1

607.9607.9725.5725.5

1065.61065.6

27,509 27,509 18,416 18,416

26,314 26,314 33,496 33,496

44,825 44,825

65,615 65,615 69,389 69,389 79,691 79,691

(1,000 people)

Changes in the Total Number of InternationalOvernight Visitors for Each Prefecture

Changes in Consumption by International Inbound Tourists

0

50,000

100,000

150,000

200,000

250,000

300,000

201520142013201220110

30,000

60,000

90,000

120,000

150,000

180,000(Million yen) (Yen/ per capita per visit)

Tohoku HokkaidoTohoku

Unit value of tourism consumption (right axis)Tourism consumption Hokkaido

172,210 172,210

21,857 21,857

278,282 278,282

22,298 22,298

124,241 124,241 119,363 119,363 121,742 121,742 125,517 125,517

146,233 146,233

38,561 38,561 45,202 45,202 45,212 45,212

72,856 72,856

48,474 48,474

Changes in the Total Number of International Inbound Overnight Visitors by Nationality

_ 25 __ 24 _

The number of evacuees is decreasing, the problems of industrial restoration are diversifying and complicated.

● As of the end of FY2017, 96% and 89% of the plan for disaster public housing and private residential housing in Iwa-te, Miyagi and Fukushima prefectures were completed, and it is expected to be almost complete at the end of FY2018.

● The number of evacuees was more than 340 thousand people in March 2012, but due to housing development, it has decreased to 60 thousand as of July 2018.

(Note) Results as of the end of FY2017 and expected completion timeSource: Infrastructure and Transport, Reconstruction Agency

Ministry of Land

Source: Number of evacuees throughout the Nationwide Reconstruction Agency

(Note 1) 12 municipalities in Iwate: Miyako City, Ofunato City, Kuji City, Rikuzentakata City, Kamaishi City, Otsuchi Town, Yamada Town, Iwaizumi Town, Tanohata Village, Fudai Village, Noda Village, Hirono Town

(Note 2) 14 municipalities in Miyagi: Ishinomaki City, Shiogama City, Kesennuma City, Natori City, Tagajo City, Iwanuma City, Higashi Matsushima City, Watari Town, Yamamoto Town, Matsushima Town, Shichigahama Town, Rifu Town, Onagawa Town, Minamisanriku Town

(Note 3) Fukushima prefecture excludes Naraha Town, Tomioka Town, Kawauchi Village, Okuma Town, Futaba Town, Namie Town, Katsurao Village, and Iitate Village.Source: Economic Census Basic Survey in 2009, Economic Census Activity Survey in 2012 and 2016

● The number of business establishments in 12 municipalities on the Iwate coast in the survey conducted in 2016 was 12,226 establishments (20.5% of the whole prefecture), which was 10.3% higher than the survey in 2012. The number of employees was 90,396 (17.3%, the same), which was an increase of 15.3%. In addition, the survey ratio of 2009 shows the decrease by 16.9% and 6.6% respectively. Also, the number of business establishments in 14 municipali-ties on the Miyagi coast in the survey conducted in 2016 was 24,136 establishments (23.7% of the whole prefecture), which was 8.4% higher than the survey in 2012. The number of employees was 214,880 (21.3%, the same), which was an increase of 12.5%. In addition, the survey ratio of 2009 shows the decrease by 20.7% and 11.7% respectively.

(15) Reconstruction Related Trends

The number of business establishments The number of employees

2009 2012 2016 2009(Persons)

2012(Persons)

2016(Persons) Compared

to 2009 (%)

Compared to 2012

(%)

Prefecture proportion

(%)

Compared to 2009

(%)

Compared to 2012

(%)

Prefecture proportion

(%)

Iwate 64,293 59,537 59,451 ▲ 7.5 ▲ 0.1 _ 546,239 509,979 525,264 ▲ 3.8 3.0 _

12 municipalities 14,716 11,089 12,226 ▲ 16.9 10.3 20.5 96,767 78,410 90,396 ▲ 6.6 15.3 17.3

Miyagi 106,937 98,190 102,026 ▲ 4.6 3.9 _ 1,032,237 955,780 1,006,886 ▲ 2.5 5.3 _

14 municipalities 30,449 22,263 24,136 ▲ 20.7 8.4 23.7 243,351 191,077 214,880 ▲ 11.7 12.5 21.3

Fukushima 98,596 89,518 88,128 ▲ 10.6 ▲ 1.6 _ 872,919 782,816 806,130 ▲ 7.7 3.0 _

0102030405060708090

100

2020 (Year-end)

20192018201720162015201420132012

Residential area for private housingDisaster public housing

(%)

1188

3131

5757

8484

9696 9999 100100 100100

1155

2222

4545

7070

8989

9898 9999 100100

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2018March

2017March

2016March

2015March

2014March

2013March

2012March

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2018July

(Persons)

OtherFukushimaMiyagiIwate

344,345344,345313,329313,329

263,958263,958225,177225,177

170,841170,841

119,163119,163

71,36571,365

5,7105,7104,7404,740

11,21111,211

37,91237,912

59,57359,573

Changes in the Number of Establishments and Employees in Affected Areas

The Number of Refugees NationwideMaintenance of Housing, Residential Lots of the Affected 3 Prefectures

_ 25 _

● Tenants of temporary facilities developed by Organization for Small and Medium Enterprise Infrastructure Develop-ment Organization due to the Great East Japan Earthquake is 1,353 companies (as of the end of March, 2018) , the fishery is the largest with 395 enterprises, followed by the construction and retail industries.

● Looking at the management issues of affected businesses in the questionnaire of the authorities, many businesses have problems in “securing and nurturing human resources” and “securing and developing sales channels.” In the fisheries and food processing industry, “rising raw material prices” and “development of new products and technologies” are the big problem compared to other industries.

● The output of Marine fisheries of disaster affiliated prefectures in 2017 (Iwate prefecture, Miyagi prefecture and Fukushima prefecture) is 294 thousand tons, which means that it is 66.8 if the year of 2010 is 100, 3.6 points lower than the previous year. The output of Marine Aquaculture of disaster affiliated prefectures in 2017 (Iwate prefecture and Miyagi prefecture) is 136 thousand tons, which means that it is 77.9 if the year of 2010 is 100, 5.9 points lower than the previous year.

● The major output of fishery processed goods in three disaster affiliated prefectures in 2016 consists of 230.7 thousand tons of Fresh frozen marine products, 39.9 thousand tons of kinds of Kamaboko (fishcake), 40.2 thousand tons of Fro-zen foods and 33.3 thousand tons of other edible processed goods.

Source: Small and Medium Enterprise Infrastructure Development Organization website

Source: Ministry of Agriculture, Forestry and Fisheries, Fishery and Aquaculture Production Statistics in 2017

(Note 1) Kinds of Kamaboko from 2010 to 2015 are excluding confidential Iwate prefecture.

(Note 2) Salted foods in 2010, 2011 and 2013 are excluding confidential Fukushima prefecture.

Source: Tohoku Agricultural Bureau Pocket Northeast Agriculture, Forestry and Fisheries

Source: Tohoku Bureau of Economy, Trade and Industry, Questionnaire Survey of Supplier of SMEs Group Subsidies (conducted in June 2017)

0

500

1,000

1,500

2,000

2,500

3,000

2018March

2017March

2016March

2015March

2014March

Agriculture and Forestry Fisheries ConstructionManufacturing Wholesale RetailEating and drinking services Services (excl. Eating and drinking services) Others

(Companies)

66395395

212212152152

2626190190109109

159159104104

2,819 2,819 2,678 2,678

2,477 2,477

2,120 2,120

1,353 1,353

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Oth

ers

Soari

ng ra

w ma

terial

price

s

Over

seas

expa

nsio

n

Envi

ronm

enta

lm

easu

res

Deve

lopme

nt of

new

produ

ctsan

d tec

hnolo

gies

Secu

ring a

nd

traini

ng hu

man r

esou

rces

Secu

ring a

nd

deve

loping

sales

chan

nels

Fina

ncin

g

(%)

All industries (n=5,912) Fisheries and food processing (n=486)

18.018.0

42.142.1

54.354.3

14.314.3

5.65.62.32.3

17.517.513.713.7

25.125.1

48.848.8

56.856.8

35.035.0

6.06.09.59.5

47.347.3

10.110.1

Marine fisheries in three afflicted prefectures compared to 2010 years

Aquaculture fisheries in two afflicted prefectures compared to 2010 years

The output of Marine fisheries of three disaster affiliated prefectures

The output of Aquaculture of disaster affiliated prefectures

(10,000 tons)

0102030405060708090

100

20172016201520142013201220112010

100.0100.0

61.661.6

20.120.1

71.771.7

40.740.7

81.981.9

56.756.7

83.583.5

64.164.1

76.176.1

73.273.2 70.470.4

72.072.0

66.866.8

77.977.9

4444

17.517.5

29.429.4

13.613.6

Frozen foodsKinds of Kamaboko Other edible processed goodsSalted foods Fresh frozen marine products (right axis)

(1,000 tons) (1,000 tons)

0

10

20

30

40

50

60

70

80

28年2726252423220

50

100

150

200

250

300

350

400

39.939.940.240.2

16.816.833.333.3

62.262.2

44.544.5

18.418.4

34.734.7

365.5365.5

230.7230.7

Changes in the number of companies’ tenants of temporary facilities

Changes in the Output of Marine Fisheries and Aquaculture of Three Disaster Affiliated Prefectures

Changes in the Output of Fishery Processed Goods

Management Issues of SMEs Group Subsidy Delivery Companies

_ 27 __ 26 _

The value of manufactured goods shipped rose 1.4% year-over-year to 17,185 billion yen.

● The value of manufactured goods shipped in the Tohoku region in 2016 increased 1.4% from the previous year (to 17,185 billion yen), for the fifth consecutive year of growth. Its share of the national total also rose 0.2 points year-on-year, to 5.6%.

● While the number of establishments in the manufacturing industry decreased in all prefectures of Tohoku, the number of employees increased in all of the prefectures. The value of manufactured goods shipped rose in all Tohoku prefec-tures except for Fukushima. The value added rose in all Tohoku prefectures except for Akita and Fukushima. The value of manufactured goods shipped was the highest ever in Aomori and Miyagi.

(1) Manufacturing industry① Overview

(Note) The number of establishments and the number of employees as of June 1.Source:Economic Census for Business Activity (four or more employees); Census of Manufacture (four or more employees)

Source: Economic Census for Business Activity (four or more employees); Census of Manufacture (four or more employees)

No. of establishments No. of employees (Persons) Value of manufactured goods shipped (Million yen)

Value added (gross value added for establishments with 29 or fewer

employees) (Million yen)

2016 2017 Y o Y change 2016 2017 Y o Y

change 2015 2016 Y o Y change 2015 2016 Y o Y

change

Aomori 1,547 1,386 ▲ 10.4 55,122 57,283 3.9 1,702,308 1,807,044 6.2 633,700 652,564 3.0

Iwate 2,281 2,081 ▲ 8.8 84,546 85,282 0.9 2,366,978 2,371,678 0.2 654,685 671,065 2.5

Miyagi 2,928 2,618 ▲ 10.6 111,372 114,587 2.9 4,017,070 4,112,832 2.4 1,224,921 1,274,536 4.1

Akita 1,869 1,800 ▲ 3.7 59,539 61,695 3.6 1,224,139 1,235,285 0.9 480,201 476,111 ▲ 0.9

Yamgata 2,662 2,496 ▲ 6.2 96,471 98,974 2.6 2,550,977 2,663,410 4.4 843,008 929,781 10.3

Fukushima 3,971 3,620 ▲ 8.8 150,230 154,979 3.2 4,915,726 4,828,248 ▲ 1.8 1,618,257 1,530,486 ▲ 5.4

Tohoku 15,258 14,001 ▲ 8.2 557,280 572,800 2.8 16,777,198 17,018,497 1.4 5,454,772 5,534,543 1.5

Japan 217,601 191,339 ▲12.1 7,497,792 7,571,369 1.0 313,128,563 302,035,590 ▲ 3.5 98,028,029 97,232,364 ▲ 0.8

Manufacturing Industry Data by Prefecture

3. Industrial Structure of Tohoku

0

5

10

15

20

25

20162015201420132012201120102009200820071.0

2.0

3.0

4.0

5.0

6.0(Trillion yen) (%)

6.2

3.2

1.7

3.6

2.6

1.7

6.0

3.1

1.6

3.5

2.5

1.6

4.7

2.4

1.2

2.9

2.0

1.5

5.1

2.8

1.3

3.6

2.1

1.5

4.3

2.6

1.2

2.8

1.9

1.4

4.6

2.4

1.1

3.4

2.2

1.5

4.8

2.4

1.1

3.7

2.3

1.5

5.1

2.6

1.2

4.0

2.3

1.6

4.9

2.6

1.2

4.0

2.4

1.7

Fukushima4.8

Yamagata2.7

Akita1.2

Akita1.2

Miyagi4.1

Iwate2.4

Aomori1.8

Aomori1.8

5.6 5.6 5.5 5.5 5.5 5.5 5.75.7

5.0 5.0

5.3 5.3 5.4 5.4 5.5 5.5 5.4 5.4 5.6 5.6

18.9 18.9 18.4 18.4

14.7 14.7

16.3 16.3

14.3 14.3 15.2 15.2 15.8 15.8

16.8 16.8 16.8 16.8 17.0

Trillion yen17.0

Trillion yen

Share of national total (right axis)

Changes in the Value of Manufactured Goods Shipped

_ 27 _

Electronic parts, devices, electronic circuits and information and communications electronics equipment had a relatively high share of the national total.

● Tohoku’s share of the value of manufactured goods shipped in Japan in 2016 was large for electronic parts, devices and electronic circuits (15.6%), and information and communications electronics equipment (14.8%), while it was small for transportation equipment (2.6%) and iron and steel (3.0%).

<Reference> Abbreviations for industry sectors in the above graph refer to the following:

② National Share by Industry Sector

(Note) Four industries in 2016 (manufacture of leather tanning, leather products and fur skins / Manufacture of information and communications electronics equipment) are calculated by the total of five prefectures since the information as to Aomori is not disclosed.

The figures in the brackets represent the share of the national total in 2015.Source: 2015:Economic Census for Business Activity (four or more employees) ;

2016:Census of Manufacture (four or more employees)

Middle division of industrialclassification Abbreviation Middle division of industrial

classification Abbreviation Middle division of industrialclassification Abbreviation

Manufacture of food Food Manufacture of petroleum and coal products Petroleum Manufacture of general-purpose

machineryGeneral-purpose

Manufacture of beverages, tobacco and feed Beverages Manufacture of plastic products Plastics Manufacture of production

machinery Production

Manufacture of textile products Textiles Manufacture of rubber products Rubber Manufacture of business-orientedmachinery Business

Manufacture of lumber and wood products (except furniture) Lumber Manufacture of leather tanning,

leather products and fur skins Leather Manufacture of electronic parts, devices and electronic circuits Electronics

Manufacture of furniture andfixtures Furniture Manufacture of ceramic, stone and

clay products Ceramics Manufacture of electrical machinery, equipment and supplies Electrical

Manufacture of pulp, paper and paper products Paper/pulp Manufacture of iron and steel Iron and steel Manufacture of information and

communications electronics equipment Information

Printing and allied industries Printing Manufacture of non-ferrousmetals and products Non-ferrous Manufacture of transportation

equipment Transportation

Manufacture of chemical and allied products Chemicals Manufacture of metal products Metals Other manufacturing Other

Tohoku’s Share of the Value of Manufactured Goods Shipped in Japan (2016)0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Transportation

Iron and steel

General-purpose

Chemicals

Plastics

PetroleumElectrical

Printing

Beverages

Metals

Production

Textiles

Furniture

Food

Paper/ pulp

Non-ferrous

Other

Rubber

Ceramics

Business

Lumber

Leather

Information

Electronics

(%)

ManufacturingShare of national total5.6% (5.4%)

ManufacturingShare of national total5.6% (5.4%)

15.6 (13.3)15.6 (13.3)

14.8 (13.6)14.8 (13.6)

14.3 (15.3)14.3 (15.3)

11.6 (11.3)11.6 (11.3)9.2 (9.3)9.2 (9.3)

8.7 (9.0)8.7 (9.0)

8.6 (7.8)8.6 (7.8)

8.5 (6.7)8.5 (6.7)8.3 (7.7)8.3 (7.7)

8.0 (8.4)8.0 (8.4)

7.2 (7.1)7.2 (7.1)

6.3 (6.3)6.3 (6.3)5.8 (5.7)5.8 (5.7)

5.5 (5.2)5.5 (5.2)5.4 (5.3)5.4 (5.3)

5.1 (4.9)5.1 (4.9)4.6 (4.1)4.6 (4.1)

4.5 (4.3)4.5 (4.3)

4.3 (3.5)4.3 (3.5)4.1 (3.9)4.1 (3.9)

3.8 (3.7)3.8 (3.7)

3.4 (3.2)3.4 (3.2)

3.0 (2.7)3.0 (2.7)

2.6 (2.6)2.6 (2.6)

_ 29 __ 28 _

The top shipping industry sectors in Tohoku are electronic parts, devices and electronic circuits, foodstuffs and transportation equipment.

● In 2016, six industry sectors out of 25 (electronic parts, devices and electronic circuits, foodstuffs, transportation equipment, chemical products, information and communications electronics equipment and production machinery) accounted for about 50% of the value of manufactured goods shipped in the Tohoku region.

● The industry sectors that have the largest share in each prefecture are as follows: Manufacture of food in Aomori, Manufacture of transportation equipment in Iwate, Manufacture of food in Miyagi, Manufacture of electronic parts, devices and electronic circuits in Akita and Yamagata and Manufacture of information and communications electron-ics equipment in Fukushima.

③ Percentage Ratios by Industry Sector and by Prefecture

(Note) The industry of Manufacture of information and communications electronics equipment in 2016 is calculated by the total of five prefectures since the information as to Aomori is not disclosed.

Source: Economic Census for Business Activity (four or more employees) ; Census of Manufacture (four or more employees)

(Note) The following industry sectors make up only a small percentage in Tohoku compared to other regions and are therefore classified as "Other": They include "beverages, tobacco and feed", "petroleum and coal products", "plastic products", "iron and steel", "general-purpose machinery", "others", "lumber and wood products (except furniture)", "rubber products", "printing and allied industries", "textile products", "furniture and fixtures", "leather tanning, leather products and fur skins." As for Aomori prefecture, " information and communications electronics equipment" and " leather tanning, leather products and fur skins" are "others" since the information of Aomori is not disclosed.

Source: Census of Manufacture (four or more employees)

(%)0 20 40 60 80 100

Oth

er

Pape

r/ pu

lp

Cer

amic

s

Bus

ines

s

Elec

trica

l

Non

-fer

rous

Met

als

Prod

uctio

n

Info

rmat

ion

Che

mic

als

Tran

spor

tatio

n

Food

stuf

fs

Elec

troni

cs

2016

2015

2014

2013

2008 14.4 14.4 10.7 10.7 7.4 7.4 5.3 5.3 11.6 11.6 4.8 4.8 4.5 4.5 4.5 4.5 4.3 4.3 3.7 3.7 3.3 3.3 3.7 3.7 21.821.8

11.2 11.2 11.2 11.2 10.3 10.3 5.5 5.5 7.4 7.4 4.7 4.7 4.3 4.3 4.3 4.3 4.0 4.0 4.0 4.0 3.7 3.7 3.6 3.6 25.825.8

11.4 11.4 11.0 11.0 9.3 9.3 5.5 5.5 7.8 7.8 5.4 5.4 4.3 4.3 4.4 4.4 4.3 4.3 3.8 3.8 3.7 3.7 3.5 3.5 25.625.6

11.8 11.8 12.0 12.0 9.9 9.9 6.2 6.2 7.0 7.0 5.6 5.6 4.5 4.5 4.4 4.4 4.5 4.5 4.0 4.0 4.0 4.0 3.7 3.7 22.422.4

13.3 13.3 12.0 12.0 10.1 10.1 6.0 6.0 5.9 5.9 5.9 5.9 4.6 4.6 4.3 4.3 4.3 4.3 3.9 3.9 3.7 3.7 3.4 3.4 22.622.6

Fukushima

Yamagata

Akita

Miyagi

Iwate

Aomori

Oth

er

Pape

r/ pu

lp

Cer

amic

s

Bus

ines

s

Elec

trica

l

Non

-fer

rous

Met

als

Prod

uctio

n

Info

rmat

ion

Che

mic

als

Tran

spor

tatio

n

Food

stuf

fs

Elec

troni

cs

(%)0 20 40 60 80 100

9.0 9.0 15.4 15.4 23.8 23.8 3.1 3.1 2.1 2.1 8.6 8.6 4.9 4.9 0.9 0.9 2.1 2.1 3.9 3.9 4.3 4.3 1.9 1.9 20.0 20.0

13.5 13.5 13.6 13.6 13.0 13.0 1.8 1.8 2.3 2.3 7.1 7.1 4.7 4.7 1.7 1.7 3.0 3.0 1.6 1.6 3.3 3.3 4.5 4.5 29.9 29.9

27.8 27.8 8.5 8.5 5.0 5.0 6.3 6.3 1.0 1.0 6.4 6.4 5.3 5.3 4.1 4.1 2.4 2.4 6.4 6.4 3.6 3.6 3.5 3.5 19.7 19.7

17.5 17.5 12.0 12.0 4.9 4.9 10.1 10.1 9.3 9.3 9.0 9.0 3.7 3.7 1.7 1.7 5.5 5.5 1.9 1.9 3.1 3.1 0.8 0.8 20.5 20.5

8.9 8.9 6.4 6.4 7.5 7.5 10.2 10.2 12.3 12.3 2.8 2.8 5.3 5.3 3.9 3.9 6.9 6.9 5.0 5.0 4.5 4.5 3.9 3.9 22.422.4

14.3 14.3 20.9 20.9 3.2 3.2 2.1 2.1 2.6 2.6 2.7 2.7 20.0 20.0 2.9 2.9 7.0 7.0 2.4 2.4 5.8 5.8 16.1 16.1

Change of Percentage of the Value of Manufactured Goods Shipped in Tohoku by Industry Sector

Percentage of Industry Sectors in the Value of Manufactured Goods Shipped in the Six Tohoku Prefectures (2016)

_ 29 _

Five industries out of the top six exceed the shipment value of manufactured goods in 2010.

● For five of the top six industries, the shipment value of manufactured goods in the Tohoku region in 2016 exceeded that of 2010. Transportation equipment was on an upward trend, and information and communications electronics equipment was on a downward trend.

● The added value productivity in Tohoku region in the year of 2016 is 9.66 million yen/ person, and is 12.84 million yen/ person in Japan. This level is 75.2 for the whole country (= 100), which approaches 76.5 in 2010 before the earthquake (68.8 in 2011).

④ Shipment Value of Manufactured Goods in Major Industrial Sectors and Added Value Productivity by Region

(Note) The industry of Manufacture of information and communications electronics equipment in 2016 is calculated by the total of five prefectures since the infor-mation as to Aomori is not disclosed.

Source: Economic Census for Business Activity (four or more employees) ; Census of Manufacture (four or more employees)

(Note) Added value productivity is the added value per employee (10,000 yen/ person). The number of employees of added value productivity in the year of 2016 is based on the figures as of June 1, 2017.Source : Census of Manufacture (four or more employees)

(Trillion yen)

Electronics Food Transportation Chemicals Information Production

0.5

1.0

1.5

2.0

2.5

3.0

201620152014201320122011201020092008

2.09 2.09 2.27 2.27

1.88 1.88 2.04 2.04

1.20 1.20

1.71 1.71

0.90 0.90 1.03 1.03

1.82 1.82

1.00 1.00

0.71 0.71 1.00 1.00

Change in Shipment Value of Manufactured Goods in Major Industrial Sectors

(10,000 persons) *The figure is 2016.

0

200

400

600

800

1,000

1,200

1,400

JapanTohokuFukushimaYamagataAkitaMiyagiIwateAomori

1,139 1,139

787 787

1,112 1,112

772 772

939 939 988 988 966 966

1,2841,284

2010 2016

Added Value Productivity by Region (Manufacturing industry total)

_ 31 __ 30 _

The number of applications for industrial property rights increased for designs and trademarks.

● The number of applications for industrial property rights made in 2017 in the Tohoku region was 1,648 for patents, 142 for utility models, 314 for designs, and 2,535 for trademarks, with an increase in utility model, design and trade-mark applications, and a decrease in patent applications.

● The number of applications for patents and designs in 2017 rose while those for utility models and trademarks fell in comparison with the national level in 2011 when the application numbers fell off due to the Great East Japan Earth-quake.

● When compared with the number of applications by prefecture in the previous year, patent applications increased in Yamagata and Fukushima. The number of utility model applications increased in Aomori, Iwate and Miyagi and the number of design applications increased in Iwate, Miyagi and Fukushima and the number of trademark applications increased in Miyagi, Akita and Fukushima.

⑤ Industrial Property Rights

Source: Japan Patent Office Annual Report, Japan Patent Office

0

500

1,000

1,500

2,000

2,500

20172016201520142013201220110.00

0.15

0.30

0.45

0.60

0.75(Applications) (%)

AomoriAomoriIwateIwate

MiyagiMiyagi

AkitaAkita

YamagataYamagata

FukushimaFukushima

1,575 1,575 1,641 1,641 1,702 1,702 1,816 1,816

1,719 1,719 1,690 1,690 1,648 1,648 145145 140140142 142 137 137

732 732 687 687

132 132 116 116

257 257 261 261

282 282 307307

0.550.55 0.570.570.630.63

0.680.68 0.660.66 0.650.65 0.630.63Share of the national total(right axis)

0

50

100

150

200

250

300

20172016201520142013201220110.00

0.70

1.40

2.10

2.80

3.50

4.20(Applications) (%)

AomoriAomoriIwateIwate

MiyagiMiyagi

AkitaAkita

YamagataYamagata

FukushimaFukushima

8888

5252

272714142828

9 9 16 16

61 61

21 21 9 9 2626

3.543.54

2.912.91 2.952.95

3.373.373.633.63

2.782.783.103.10223 223

183 183 176 176 183 183 189 189

137 137 142 142

Share of the national total(right axis)

0

100

200

300

400

500

20172016201520142013201220110.00

0.35

0.70

1.05

1.40

1.75(Applications) (%)

AomoriAomoriIwateIwate

MiyagiMiyagi

AkitaAkitaYamagataYamagata

FukushimaFukushima 3737

6565

1616

109109

23234343

4040

6363

99

141141

33332828

1.111.11

1.271.271.391.39

1.601.60

1.061.061.191.19

1.291.29

297 297

354 354 366 366 397 397

264 264 293 293 314 314

Share of the national total(right axis)

0

500

1,000

1,500

2,000

2,500

3,000

20172016201520142013201220110.00

0.40

0.80

1.20

1.60

2.00

2.40(Applications) (%)

AomoriAomori

IwateIwate

MiyagiMiyagi

AkitaAkita

YamagataYamagata

FukushimaFukushima 467467 523523

376376 340340

241241 296296

777777802802

340340319319

299299 255255

2.052.05 2.282.282.232.23

2.142.141.951.95

1.871.87

1.641.641,733 1,733

2,174 2,174 2,066 2,066 2,141 2,141 2,302 2,302

2,500 2,500 2,535 2,535

Share of the national total(right axis)

Changes in the Number of Patent Applications

Changes in the Number of Design Applications

Changes in the Number of Utility Model Applications

Changes in the Number of Trademark Applications

_ 31 _

(Note1) The number of establishments and the number of employees were as of July 1, 2014 for 2014 and as of June 1, 2016 for 2016.(Note2) Changes from the previous census in the number of establishments, number of employees, and annual sales of goods are based on comparison between 2014 and

2016.Source : 2016 year Economic Census - Activity Survey Industry Total (Wholesale, Retail)

Source: 2016 year Economic Census -Activity Survey Industry Total (Wholesale, Retail)

Although both wholesale and retail industries decreased the number of establishments and the number of employees, the annual commodity sales increased.

● In 2016, the total number of wholesale and retail business establishments in the Tohoku region was 107,899 (down 2.8% from the 2014 survey; the national figure also decreased 3.7% during the same period), while the number of employees was 765,337 (down 1.4% from the 2014 survey; down 0.2% for the nation during the same period). Total annual sales of goods stood at 28,916.2 billion yen (up 17.9% from the 2014 survey; the national figure rose 21.5% during the same period). Total annual sales refer to sales of goods for the calendar year immediately preceding the year of the survey.

● Although both wholesale and retail industries decreased the number of establishments and the number of employees, the annual commodity sales increased.

● For wholesalers the number of business establishments decreased from the previous survey in all prefectures, while total annual sales increased from the previous survey in all prefectures. For retailers, the number of business estab-lishments decreased from the previous survey in all prefectures, while total annual sales increased from the previous survey in all prefectures.

(2) Commerce① Overview

Number of Business Establishments Number of Employees Annual sales of goods (* Sales during the year immediately preceding

the year of the survey)Share of national

total (%)

Changes from the previous census

(%) (Persons)Share of national

total (%)

Changes from the previous census

(%) (Million yen)Share of national

total (%)

Changes from the previous census

(%)Tohoku Japan Tohoku Japan Tohoku Japan

Commerce total

2014 111,008 7.9 _ _ 776,029 6.7 _ _ 24,528,243 5.1 _ _

2016 107,899 8.0 ▲ 2.8 ▲ 3.7 765,337 6.6 ▲ 1.4 ▲ 0.2 28,916,184 5.0 17.9 21.5

Wholesale trade

2014 27,511 7.2 _ _ 220,524 5.6 _ _ 15,545,466 4.4 _ _

2016 26,654 7.3 ▲ 3.1 ▲ 4.6 217,845 5.5 ▲ 1.2 0.2 18,596,674 4.3 19.6 22.4

Retail trade

2014 83,497 8.1 _ _ 555,505 7.2 _ _ 8,982,777 7.4 _ _

2016 81,245 8.2 ▲ 2.7 ▲ 3.4 547,492 7.2 ▲ 1.4 ▲ 0.4 10,319,509 7.1 14.9 18.8

Changes in the Number of Business Establishments, Number of Employees, and Annual Sales of Goods

2016 Changes from Previous Census by Prefecture (Comparison with 2014)-10 0 10 20 30

Fukushima

Yamagata

Akita

Miyagi

Iwate

Aomori

Tohoku

(%)

No. of establishments No. of employees Annual sales of goods

-3.1 -3.1 -1.2 -1.2 19.6 19.6

-3.5 -3.5 -1.7 -1.7 8.5 8.5 -2.1 -2.1

-2.6 -2.6 30.3 30.3

-2.3 -2.3 -1.1 -1.1 20.4 20.4

-4.5 -4.5 -3.9 -3.9 20.9 20.9

-3.9 -3.9 0.8 0.8 14.2 14.2

-3.6 -3.6 0.0 0.0 20.4 20.4

-2.7 -2.7

-3.4 -3.4

-3.5 -3.5

-0.8 -0.8

-3.5 -3.5

-3.1 -3.1

-2.9 -2.9

-1.4 -1.4

-2.1 -2.1

-3.9 -3.9

-1.1 -1.1

-1.9 -1.9

-3.3 -3.3

1.9 1.9

14.9 14.9

19.1 19.1

12.7 12.7

22.8 22.8

10.1 10.1

4.9 4.9

12.5 12.5

-10 0 10 20 30 (%)

Fukushima

Yamagata

Akita

Miyagi

Iwate

Aomori

Tohoku

No. of establishments No. of employees Annual sales of goods

_ 33 __ 32 _

(3) Service industry

The Gross Regional Domestic Product (GRDP) of service industry increased for four consecutive years.

● The GRDP for the service industry in Tohoku rose 2.4% in FY 2015 from the previous fiscal year to 197.293 billion yen.

● The share of the service industry for nominal GRDP in Tohoku decreased 1.2 points from the previous fiscal year (59.5%) to 58.3%, and the decline continues since FY 2009.

● The 2016 Economic Census for Business Activity indicated that the number of employees (as of June 1, 2016) was 1.9 million persons; of this number, 25.7% worked in medical, healthcare and welfare industries, followed by the accom-modations, eating and drinking services (16.5%), and services (N.E.C.) (15.0%).

● Medical, healthcare and welfare industries have a larger share in the Tohoku region than the nation as a whole and the information and communications industry has a smaller share.

(Note) The service industry in this table shall be Electricity, gas, water and waste disposal business, Transport and postal services, Accommodations, eating and drinking services, Information and communications, Finance and insurance, Real estate, Professional and technical services, Business support services, Government service producers, Education, Public health and hygiene and social services (Medical, health care and welfare), Miscellan-ceous services.

Source: Annual Report on Prefectural Accounts, Cabinet Office

(Note) The service industries in this table refer to the major group categories of industries in the Japan Standard Industry Classification (revised in October 2013), from “Division F-Electricity, gas, heat supply and water” to “R-Services N.E.C.” The table excludes employees engaged in “I- Wholesale and retail trade.”

Source: 2016 Economic Census for Business Activity, Statistics Bureau, Ministry of Internal Affairs and Communication

0

50,000

100,000

150,000

200,000

250,000

300,000

FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 200625.0

30.0

35.0

40.0

45.5

50.0

55.0

60.0

65.0（％）(Billion yen)

hare of Service Industry (right axis)Aomori Iwate Miyagi Akita Yamagata Fukushima

59.759.7 60.560.5 61.661.6 62.862.8 62.062.0 61.961.9 60.760.7 59.759.7 59.559.558.358.3

199,301199,301 199,734199,734 191,929191,929 189,414189,414 187,129187,129 182,113182,113 186,945186,945 189,804189,804 192,762192,762 197,293197,293

27,35627,356

26,60426,604

54,46354,463

21,91121,91122,63022,630

44,32944,329

Electricity, gas, heat supply and water Information and communications Transport and postal activities Finance and insuranceReal estate, and goods rental and leasing

Scientific research, professional and technical services

Accommodations, eating and drinking services

Living-related and personal services and amusement services

Education, learning support Medical, health care and welfare Compound services Services, N.E.C.

0 100(%)

1.9 million perosons

32.1 million persons

Tohoku

Japan

0.90.92.42.4 10.510.5 4.74.7 3.83.8 4.64.6 16.516.5 8.58.5 5.05.0 25.725.7 2.52.5 15.015.0

0.60.65.15.1 10.010.0 4.84.8 4.64.6 5.75.7 16.716.7 7.57.5 5.75.7 23.023.0 1.51.5 14.814.8

Changes in Gross Product of Service Industry (nominal)

Percentage of Employees Engaged in Service Industries by Major Group Category

_ 33 _

(4) Agriculture, Forestry, and Fisheries

The output of the agriculture and the marine fisheries industry increased, while the output of the forestry industry decreased.

● The number for agricultural management in the Tohoku region in the year of 2015 was 251,519 entities (down 21.6% from the 2010 survey, down 18.7% from the whole country). Forestry management was 15,175 entities (down 42.9% from the 2010 survey, down 37.7% from the whole country). Fishery management in the Tohoku region in the year of 2013 was 11,308 entities (down 31.8% from the 2008 survey, down 18.0% from the whole country).

● The amount of agricultural output in the Tohoku region in the year of 2016 is 1,388.5 billion yen, which accounts for 14.92% of agricultural output nationwide of 9,305.1 billion yen, 0.06 points higher than the previous year. By item, the amount of livestock products is the largest at 449.4 billion yen, accounting for 32.4% of the Tohoku region’s agricultural output, followed by rice at 412.9 billion yen and 29.7%.

Source: Agriculture and Forestry Census (as of February 1 each year), Fishery Census (As of November 1 each year)

Source: Tohoku Agricultural Bureau Pocket Statistics of Northeast Agriculture, Forestry and Fisheries

Agriculture Forestry Fishery

2010 2015 Previous ratio (%) 2010 2015 Previous

ratio (%) 2008 2013 Previous ratio (%)

Japan 1,726,751 1,404,488 ▲ 18.7 140,186 87,284 ▲ 37.7 115,196 94,507 ▲ 18.0

Tohoku 320,942 251,519 ▲ 21.6 26,569 15,175 ▲ 42.9 16,590 11,308 ▲ 31.8

Aomori 45,555 35,914 ▲ 21.2 3,071 2,059 ▲ 33.0 5,146 4,501 ▲ 12.5

Iwate 59,301 46,993 ▲ 20.8 8,795 4,979 ▲ 43.4 5,313 3,365 ▲ 36.7

Miyagi 51,410 38,872 ▲ 24.4 2,129 1,373 ▲ 35.5 4,006 2,311 ▲ 42.3

Akita 50,215 38,957 ▲ 22.4 4,894 2,726 ▲ 44.3 966 758 ▲ 21.5

Yamagata 41,857 33,820 ▲ 19.2 2,751 1,317 ▲ 52.1 416 359 ▲ 13.7

Fukushima 72,604 53,157 ▲ 26.8 4,929 2,721 ▲ 44.8 743 14 ▲ 98.1

The number of agricultural, forestry and fishery management

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

20162015201420132012201120100.0

1.8

3.6

5.4

7.2

9.0

10.8

12.6

14.4

16.2

18.0(%)(Trillion yen)

Rice Vegetables Fruits Flowering plantsIndustrial crops OtherLivestock Nationwide ratio (right axis)

4,129 4,129

2,619 2,619

2,022 2,022 264 264 134 134

4,494 4,494

223 223

15.1715.17 15.0615.06 15.4415.44 15.2715.2714.5914.59 14.8614.86 14.9214.92

12,526 12,526 12,571 12,571 13,296 13,296 13,092 13,092

12,298 12,298 13,169 13,169

13,885 13,885

Rice29.7%

Vegetables18.9%Fruits

14.6%Flowering plants 1.9%

Industrial crops 1.0%

Livestock products32.4%

Other 1.6%

Tohoku1,388.5 billion yen

(2016)

Trend of Agricultural Output and Nationwide Ratio Breakdown of the Output of the Agricultural Industry

_ 35 __ 34 _

● The amount of forestry output in the Tohoku region in the year of 2016 is 69.65 billion yen, which accounts for 15.8% of forestry output nationwide of 440.48 billion yen, 1.6 points lower than the previous year. By item, lumber produc-tion was 45.65 billion yen, accounting for 65.9% of agricultural output in Tohoku region. Cultivated fungi production is 22.85 billion yen, which is 33.0%.

● The output of marine fisheries and marine aquaculture in the Tohoku region in 2016 was 194.2 billion yen, which ac-counts for 13.2% of the output nationwide, 1.0 points higher than the previous year. By the type of business, marine fisheries is 132.8 billion yen, and marine aquaculture is 58.4 billion yen.

● The production volume of marine fisheries in the Tohoku region in 2016 is 415,000 tons, which is the second consecu-tive year’s decline. The proportion of the Tohoku region’s production nationwide was 12.7%, decreased by 0.1 points from the previous year.

Source: Tohoku Agricultural Bureau Pocket Statistics of Northeast Agriculture, Forestry and Fisheries

(Note) 2013 was calculated with the amount excluding Yamagata prefecture and Fukushima prefecture since aquaculture output value is kept secret. 2014 was calculated with the amount excluding Yamagata prefecture since aquaculture output value is kept secret. 2015 was calculated with the amount excluding Yamagata prefecture since aquaculture output value is kept secret. 2016 was calculated with the amount excluding Yamagata prefecture since marine fisheries and aquaculture output value were kept secret.Source: Tohoku Agricultural Bureau Pocket Statistics of Northeast Agriculture, Forestry and Fisheries

0

200

400

600

800

1,000

1,200

20162015201420132012201120100.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0(%)(100 million yen)

Lumber production Firewood coal productionCultivated fungi production

OtherNationwide ratio (right axis)

16.416.4

14.614.615.515.5

16.216.217.117.1 17.417.4

15.815.8

456.5456.5

7.37.3

228.5228.5

0.40.4692.8692.8606.8606.8 602.6602.6

682.5682.5767.3767.3 753.0753.0

696.5696.5

Lumberproduction

65.9％

Cultivated fungi

production33.0％

Firewood coal production

1.1％

Other 0.1％

Tohoku69.65 billion yen

(2016)

0

500

1,000

1,500

2,000

2,500

2016201520142013201220112010

Marine fisheries Aquaculture Nationwide ratio (right axis)

1,328 1,328

584 584

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0(%)(100 million yen)

19071907

12661266 13421342 1,379 1,379 1,623 1,623

1,803 1,803 1,942 1,942

13.613.6

9.59.510.110.1 10.210.2

11.511.512.212.2

13.213.2

0

100

200

300

400

500

600

700

800

20162015201420132012201120100.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Marine fisheries Nationwide ratio (right axis)

585585

400400427427

473473 491491448448

415415

(%)(100 tons)

14.214.2

10.510.511.411.4

12.712.713.213.2 12.812.8 12.712.7

Changes in the Output of the Forestry Industry and Share of the National Total

Breakdown of the Output of the Forestry Industry

Changes in the Output of the Marine Fisheries and Marine Aquaculture

and Share of the National Total The Output of the Marine Fisheries

_ 35 _

Tohoku Bureau of Economy, Trade and Industry

ECONOMIC OVERVIEW OF TOHOKU REGION

2018