I’ve always felt this was a strength of Japan since it ensures employment of even unskilled workers. I remember one time walking near my hotel along a sidewalk in a construction zone, in the USA there'd be a “caution” sign (probably facing the wrong way), but in japan there were live workers at each side of the zone , and they called out a warning to pedestrians to be careful and when a construction truck needed to cross the sidewalk, the workers would physically block the sidewalk to keep pedestrians clear.

I’ve noticed around here that more road construction projects have replaced human flaggers with automated traffic lights… almost certainly better for efficiency and productivity, but probably not better for the people that would have done that job otherwise.

And maybe this leads to lower salaries in Japan, but that doesn’t necessarily mean low quality of life, I know someone in Japan that’s working as a suit salesman (retail sales, not administrative back office) and he can afford to support a family (stay at home wife plus 3 year old child) and a 2 bedroom apartment. I think that’d be much harder for an American worker selling suits at The Men’s Wearhouse