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Labor Situation in Japan and Analysis 2004/2005 Labor Situation in Japan and Analysis 2004/2005 JILPT Labor Situation in Japan and Analysis 2004/2005 Labor Situation in Japan and Analysis 2004/2005 The Japan Institute for Labour Policy and Training The Japan Institute for Labour Policy and Training Printed on Recycled Paper The Japan Institute for Labour Policy and Training The objective of The Japan Institute for Labour Policy and Training is to contribute to the planning of labour policies and work toward their effective and efficient implementation, as well as to promote the livelihood of workers and the development of the national economy by conducting comprehensive research projects regarding labour issues and policies, both domestically and internationally, and capitalize on the findings of such research by sponsoring training programs for administrative officials. The Institute will concentrate our effort in the following areas. 1. Comprehensive Research on Labour Policies The following research themes have been decided. (1) Contribute to the formulation of an employment strategy centering on systematic implementation and assessment of employment promoting measures and the creation of jobs that match the regional situation. (2) Contribute to upgrading the supply/demand adjustments of the labour market, including adequate responses to employment issues for the young, middle-aged and older workers and to a vocational information system. (3) Contribute to the development of an infrastructure for the corporate management of human resources and ability development, and to restructuring the system determining working conditions while accurately monitoring changes in corporate structure and behavior. (4) Contribute to building a social system in which one's private and working life are in harmony with each other, and to developing an environment allowing for diverse working styles, indispensable for such a system. The Institute will also engage in collection and coordination of information on labour policies, both domestically and internationally, and various statistical data in order to lay a solid basis for its research activities. We will also carry out policy studies from an international perspective by building a network with overseas research institutions and individual researchers. 2. Training of Staff and Other Personnel Related to Labour Affairs Using the results of the above mentioned research projects, the institute will provide training programs for personnel in charge of labour affairs and other interested parties at the Ministry of Health, Labour and Welfare. Simultaneously, through such training sessions, the Institute will be kept abreast of current issues in labour administration and the problems frontline officials in such positions face. The information so acquired will then be utilized in future research activities. 3. Dissemination of Results and Findings, Including Policy Proposals The results of our research activities will be published quickly in research reports on labour policies, newsletters and on the web site with an eye to contributing to the planning and drafting of labour policies and the stimulation of policy discussions among different strata of the populace. At the same time, the Institute will organize policy forums and other events to provide opportunities for open discussion on policies. Labor Situation in Japan and Analysis 2004/2005 The Japan Institute for Labour Policy and Training Contents Chapter I The Economy, Industries and Corporations 1 The Japanese Economy: Current Situation and Outlook for the Future ………………………………2 2 Japanese Corporate Management Systems ……………………………………………………………6 Chapter II The Labor Markets 1 Population ………………………………………………………………………………………………10 2 Labor Force ………………………………………………………………………………………………14 3 Changes in the Employment Structure …………………………………………………………………16 4 Diversification in Forms of Employment ………………………………………………………………18 5 Employment and Unemployment Trends ………………………………………………………………21 Chapter III Human Resource Management 1 The Long-Term Employment System ……………………………………………………………………26 2 Recruiting and Hiring ……………………………………………………………………………………29 3 Assignments and Transfers………………………………………………………………………………34 4Wages ……………………………………………………………………………………………………38 5Working Hours …………………………………………………………………………………………40 6 Company Benefits ………………………………………………………………………………………44 7 Career Development through In-house Training and Education ……………………………………47 8 Resignation, Mandatory Retirement and Dismissals …………………………………………………50 Chapter IV Labor Relations 1 Labor-Management Relations in Japan …………………………………………………………………56 2 Union Organization………………………………………………………………………………………58 3 Labor Unions ……………………………………………………………………………………………60 4 Collective Bargaining and the Labor-Management Consultation System ……………………………63 5 Shunto: Spring Wage Offensive…………………………………………………………………………69 Chapter V Labor Laws and Labor Administrations 1 Employment Measures and Relief for the Unemployed ………………………………………………71 2 Policies Designed to Secure Employment for Older and Disabled Workers …………………………73 3 Public Job Introduction System …………………………………………………………………………78 4 Measures to Shorten Working Hours …………………………………………………………………80 5 The Minimum Wage System ……………………………………………………………………………82 6 Industrial Safety and Health ……………………………………………………………………………84 7 Gender Equal Employment Policies ……………………………………………………………………88 8 Assistance Measures to Balance Work and Family ……………………………………………………89 9 Part-time Work Policies …………………………………………………………………………………91 10 Public Vocational Training Policies ………………………………………………………………………94 Chapter VI Japan’s Social Security System 1 The Subject of Japan’s Social Security System …………………………………………………………98 2 Pension System …………………………………………………………………………………………102 3 Medical Insurance and Long-Term Care Insurance …………………………………………………104 Appendix (International Comparisons) …………………………………………………………………107 Index …………………………………………………………………………………………………………112 Contributing Authors ………………………………………………………………………………………115 ii Labor Situation in Japan and Analysis 2004/2005 Contents for Tables and Figures Chapter I I-1 Real GDP Growth and the Unemployment Rate ……………………………………………………3 I-2 Changes in the Price Increase Rate …………………………………………………………………4 I-3 Changes in Trade by Region …………………………………………………………………………4 I-4 Changes in Unemployment and Long-term Unemployment Rate…………………………………5 I-5 Holding Loss of Lands and Stocks ……………………………………………………………………7 I-6 Non-Performing Loans of Japanese Banks …………………………………………………………7 I-7 Non-Performing Loans of Japanese Banks …………………………………………………………8 I-8 Changes in the Number of Mergers and Acquisitions (M&As) by Type……………………………8 Chapter II II-1 Changes in the Total Population: medium, high, low ……………………………………………11 II-2 Changes in Population Pyramids: Medium Population Growth …………………………………12 II-3 Changes in Registered Alien Population by Nationality …………………………………………13 II-4 Composition of Labor Force ………………………………………………………………………15 II-5 Changes in the Labor Force Participation Ratio by Sex and Age: 1970–2001 …………………15 II-6 Yearly Increases and Decreases in Employment Structure by Industry……………………………17 II-7 Changes in the Number of Part-time Workers and Workers Supplied by Temporary Employment Agencies ………………………………………………………………18 II-8 Reasons for Hiring “Non-regular Workers” ………………………………………………………19 II-9 Reasons for Working as a “Non-regular Worker”…………………………………………………19 II-10 Proportion of Workers by Form of Employment …………………………………………………20 II-11 Breakdown of Employed Persons (2002 Average)…………………………………………………21 II-12 Breakdown of Employees by Status at Work ………………………………………………………22 II-13 Breakdown of Non-Agricultural/Forestry Industry Employees by Working Hours ………………23 II-14 Changes in Unemployment Rate and Long-term Unemployment Rate …………………………24 II-15 Changes in Structural and Frictional Unemployment Rate and Deficient Demand ……………24 Chapter III III-1 Attitudes of Companies Towards Lifetime Employment …………………………………………26 III-2 Attitudes Towards Japanese Lifetime Employment ………………………………………………27 III-3 Current Ratio of Hiring for New Graduates (multiple responses) ………………………………29 Labor Situation in Japan and Analysis 2004/2005 iii III-4 Current Ratio of Hiring for Mid-career Workers (multiple responses) ……………………………29 III-5 Use of the Internet in Hiring Activities ……………………………………………………………30 III-6 Methods of Recruiting New College Graduates and Mid-career Hires (multiple responses)……31 III-7 Points Considered Important when Hiring Recent College Graduates (up to 3 multiple responses) ………………………………………………………………………31 III-8 Points Considered Important when Hiring Mid-career Workers (up to 3 multiple responses) …31 III-9 Points Taken Seriously in Hiring New Graduates and Mid-Career Workers (1,222 companies, JILPT 2003) ……………………………………………………………………32 III-10 Reasons for Practicing the Hire of Mid-career Workers (multiple responses) ……………………32 III-11 Method to secure desired human resources/capacities……………………………………………34 III-12 Ratio of Companies That Did/Did Not Reassign Employees ………………………………………35 III-13 Reasons for Transferring Employees ………………………………………………………………35 III-14 Ratio of Companies by Implementation Status of Various Personnel Management Systems and by Future Plans ………………………………………………………36 III-15 Wage Profile by Age and Sex (manufacturing) ……………………………………………………38 III-16 International Comparison of Working Hours (production workers in manufacturing industries: 2000) …………………………………………40 III-17 Percentage of Annual Paid Vacation Days Consumed (2002) ……………………………………41 III-18 Changes in Average Annual Working Hours per Worker…………………………………………42 III-19 Percentage Fluctuations in Overtime Hours ………………………………………………………43
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