Sometimes, it feels like there are two entirely different anime industries. One is a thriving, multi-billion-dollar business, generating an estimated $20 billion annually, thanks to global hits like Oshi no Ko, to name just a few. These franchises can dominate worldwide streaming platforms, sell out merchandise, and fill theaters with blockbuster films, making anime one of Japan’s biggest cultural exports.

Yet, behind this success lies a harsh reality. Animators and voice actors—the backbone of the industry—struggle with low wages, grueling hours, and an ever-growing labor shortage. Many animators, particularly young freelancers, earn far below a living wage despite working under punishing deadlines. Meanwhile, voice actors face stiff competition and unstable incomes, making long-term careers in the industry difficult to sustain. Both sides of this reality—the glamorous and the grim—are undeniably true. But will there ever be meaningful reform?

The United Nations Takes Notice

A Tough Report on Anime Industry Exploitation

Now, no less an authority than the United Nations has taken notice of the crisis within Japan’s anime industry. The global business and finance news outlet Bloomberg recently reported on a damning UN assessment that highlights the industry’s systemic problems. This scrutiny could push the Japanese government to finally take action and implement reforms to improve working conditions for both animators and voice actors.

In 2024, a working group for the United Nations Human Rights Council released a 22-page report titled “Visit to Japan: Report of the Working Group on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises.” The findings expose widespread exploitation in Japan’s anime and idol industries, shedding light on the stark contrast between the industry’s booming profits and the poor treatment of its workforce.

Alarming Findings in Previous Reports

Anime and Idols in Peril to Predatory Regulations

The United Nations Working Group has sounded the alarm on deeply troubling labor issues. Despite the anime market’s explosive growth—reaching 2.74 trillion yen (approximately $20 billion)—animators continue to earn staggeringly low wages. According to the report, “the annual starting salaries of animators stand at a mere 1.5 million yen (roughly $10,000),” a stark contrast to the industry’s soaring profits. The situation is even more precarious for freelancers, who made up 30.8% of the industry in 2023 but were reportedly “not receiving protection under the current labor laws.”

With no legal safeguards, animators endure “excessively long working hours and unfair subcontracting relationships,” yet production companies and their subcontractors face no penalties. To make matters worse, many animators sign contracts that “inadequately protect their intellectual property rights,” leaving them vulnerable to further exploitation. If these problems go unaddressed, the report warns the industry could face a potential collapse.

Meanwhile, Japan’s idol industry isn’t faring much better. The UN report highlights how young performers are “coerced into g contracts” that force them to comply with every demand from producers, rs, and agents. Even minor infractions can result in “exorbitant penalties for non-compliance,” trapping idols in a system where power is heavily skewed against them.

The Cultural and Economic Importance of Anime

Who Could Fill the Void if it Crashes?

With anime now a $20 billion global export, generating nearly as much revenue as Japan’s steel and computer chip industries, the country cannot afford to lose its golden goose. The anime industry’s cultural and economic significance makes it a cornerstone of Japan’s soft power, attracting millions of fans worldwide and fueling a massive market for merchandise, streaming, and theatrical releases.

At the same time, if Japan’s anime industry were to collapse, other countries are ready to step in and fill the void. In particular, China has been making significant strides in animation, producing films and series that are gaining international recognition. One standout example is Ne Zha 2, which became a massive box office hit and is now the highest-grossing animated film in China’s history, earning over $2 billion worldwide.

Meanwhile, Chinese animation is also making waves in the television sector. The new series Super Cube has begun attracting attention worldwide, particularly for its shōnen anime-inspired fight scenes that resemble, and possibly outshine, the high-energy battles seen in popular Japanese series like Dragon Ball and Naruto.

New Labor Protections: A Step Forward or Not Enough?

The Future of Japan’s Anime Industry

Perhaps inspired by the UN report, Japanese lawmakers finally took action last November, introducing new protections for freelance workers—including animators and voice actors. The legislation aims to address exploitative contracts and improve working conditions for those at the heart of the industry. However, some say they have yet to see any real benefits. Many animators and voice actors argue that the reforms lack enforcement mechanisms, leaving studios little incentive to change. With wages still alarmingly low, workers are now calling on anime studios to go further—raising salaries and offering more sustainable working conditions to ensure the industry’s survival.

The UN report has put a spotlight on Japan’s anime industry, exposing the struggles behind its success. While new labor protections are a step forward, many animators and voice actors say little has changed. If Japan wants to keep its $20 billion anime empire strong, it needs to back words with action. Without real improvements, the industry’s future may not be as bright as its biggest hits.

Source: Bloomberg