But the countries which have continued to maintain low unemployment have maintained a sector of the economy which effectively functions as an employer of last resort, which absorbs the shocks which occur from time to time, and more generally makes employment available to the less skilled, the less qualified. There is, of course, a cost associated with this concept, but it is a cost which societies with a high degree of social cohesion have been willing to pay.
In Japan, this shock-absorber has been the domestic service sector. Japanese manufacturing, competing in world markets, is formidably efficient, but the domestic service sector -- travel, restaurants, leisure activities and so on -- employs far more people than comparable companies and industries elsewhere in the West. (...) in Japanese restaurants, for example, many people are employed to carry out what often seem to visitors to the country to be trivial or even pointless tasks. But whether it is soccer clubs, restaurants or whatever, the costs of all these people appear on the bill which is presented to the consumer of the services.*
* A friend of mine assures me that in one of the most exclusive restaurants in Tokyo a person is even employed with the sole function of reviving foreigners who have fainted when confronted with their bill.
From:
Chapter 10, "Economics Revisited"
in The Death of Economics
by Paul Ormerod