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JILPT Labor Situation in Japan and Its Analysis: General Overview 2015/2016 LaborLabor SituationSituation inin JapanJapan andand ItsIts Analysis:Analysis: GeneralGeneral OveOverrviewview 2015/20162015/2016 The Japan Institute for Labour Policy and Training The Japan Institute for Labour Policy and Training Printed on Recycled Paper Labor Situation in Japan and Its Analysis: General Overview 2015/2016 The Japan Institute for Labour Policy and Training Labor Situation in Japan and Its Analysis: General Overview 2015/2016 Foreword The Japan Institute for Labour Policy and Training (JILPT) was established in October 2003 with the objective of contributing to the planning of labor policies and working toward their effective and efficient implementation. In order to achieve this objective, the Institute works towards building a network with overseas research institutions and individual researchers, and is also engaged in the promotion of joint study from an international perspective. This publication describes and analyzes the current status of labor issues in Japan. The authors are primarily JILPT researchers; assistance has been provided by officials at the relevant departments of the Ministry of Health, Labour and Welfare regarding explanations of concrete labor measures, and JILPT International Affairs Department is responsible for compilation and editing. In principle, this publication is issued alternately as “General Overview” and “Detailed Exposition” editions. The Detailed Exposition 2014/2015 issued in February 2015, and provides recent write-ups by JILPT researchers dealing mainly with important labor issues. Consequently, as opposed to the Detailed Exposition, this General Overview 2015/2016 edition provides an exhaustive range of write-ups that covered basic points on issues related to labor issues and labor policies in Japan. We hope that this publication will help its readers gain an understanding of the current labor situation in Japan. March 2016 SUGENO Kazuo, President The Japan Institute for Labour Policy and Training Labor Situation in Japan and Its Analysis: General Overview 2015/2016 Contents Chapter I Japanese Economy and Labor Situation 1 The Japanese Economy: Current Status and Outlook ……………………………………………………… 2 2 Characteristics of Recent Labor Issues ……………………………………………………………………… 14 Chapter II Labor Market 1 Population and Labor Force ………………………………………………………………………………… 20 2 Employment and Unemployment Trends ………………………………………………………………… 25 3 Regional Employment Trends ……………………………………………………………………………… 31 4 Changes in the Employment Structure …………………………………………………………………… 34 5 Diversification in Forms of Employment …………………………………………………………………… 40 6 Employment of Youth, Older Persons, Women and Foreign Workers ………………………………… 48 Chapter III Human Resource Management 1 Long-term Employment System …………………………………………………………………………… 74 2 Recruitment and Hiring ……………………………………………………………………………………… 77 3 Allocation and Transfer of Human Resources ……………………………………………………………… 83 4 Resignation, Mandatory Retirement and Dismissals, etc. ………………………………………………… 87 5 Corporate In-house Education and Training and Career Formation …………………………………… 92 6 Wage Systems ………………………………………………………………………………………………… 95 7 Working Hours ………………………………………………………………………………………………… 99 8 Company Benefits ……………………………………………………………………………………………104 Chapter IV Labor-Management Relations 1 Labor-management Relations in Japan ……………………………………………………………………110 2 State of Unionization and Labor Union Structure …………………………………………………………113 3 Shunto: Spring Wage Offensive ……………………………………………………………………………119 4 Labor Disputes and Resolution Systems ……………………………………………………………………122 Chapter V Labor Administration and Legislation 1 Overview of Employment Measures ………………………………………………………………………144 2 Employment Measures for Young People …………………………………………………………………147 3 Policies Designed to Secure Employment for Older and Disabled Workers ……………………………149 4 Policy on Equal Employment Opportunity between Men and Women …………………………………157 5 Measures for Workers in Non-regular Employment (Fixed-term, Part-time, Dispatch) ………………159 6 Public Job Introduction System ……………………………………………………………………………163 7 Employment Measures for Foreigners ………………………………………………………………………164 8 Promotion of Measures to Assist Work-life Balance ………………………………………………………168 9 Minimum Wage System ……………………………………………………………………………………171 10 Industrial Safety and Health Measures and Workers’ Accidents Compensation Insurance System …174 11 Vocational Skills Development Policy ………………………………………………………………………178 Chapter VI Social Security System 1 The Subject of Japan’s Social Security System ……………………………………………………………182 2 Income Security and Childcare Services for Households with Children …………………………………191 3 The Pension System and Public Assistance ………………………………………………………………193 4 Medical Insurance and the System of Medical Care for the Latter-stage Elderly ………………………198 5 Long-term Care Insurance ……………………………………………………………………………………202 Appendix (International Comparisons) ………………………………………………………………………… 206 Index …………………………………………………………………………………………………………… 213 Contributing Authors ………………………………………………………………………………………………………216 ii Labor Situation in Japan and Its Analysis: General Overview 2015/2016 Contents for Tables and Figures Chapter I I-1 Nominal GDP by Category of Demand, Outstanding Loan Balance of Financial Institutions, Change in the Exchange Rate ……………………………………………………………………………… 10 I-2 Consumer Prices and Corporate Goods Prices …………………………………………………………… 11 I-3 Total Unemployment Rate and University-graduate Employment Rate ……………………………… 12 I-4 Total Cash Earnings by Employment Format, and Part-time Workers as Percentage of Workforce … 12 I-5 Percentage of Companies That Raised Employees’ Wages ……………………………………………… 13 I-6 Trends in Japan’s Population ……………………………………………………………………………… 19 Chapter II II-1 Japan’s Population in 50 Years ……………………………………………………………………………… 22 II-2 Changes in Registered Alien Population by Nationality ………………………………………………… 22 II-3 Composition of Labor Force ………………………………………………………………………………… 24 II-4 Changes in the Labor Force Participation by Sex and Age ……………………………………………… 24 II-5 Breakdown of Employed Persons (2014 Averages) ……………………………………………………… 27 II-6 The Proportion of Employees by Type of Employment ………………………………………………… 28 II-7 Breakdown of Non-agricultural/ Forestry Industry Employees by Weekly Working Hours ………… 29 II-8 Trends in Unemployment and Long-term Unemployment Rates …………………………………… 29 II-9 Trends in Structural/ Frictional Unemployment Rate and Demand Shortage Unemployment Rate (1980 I- 2015 I) ………………………………………………………………………………………… 30 II-10 Effective Ratio of Job Offers to Applicants, by Prefecture (Aug.2015) ………………………………… 32 II-11 Trends of Employed by Three Industry Divisions (Total of Male and Female) ………………………… 36 II-12 Number of Year-on-year Difference in the Number of Employed by Principal Industries (Total of Male and Female) ………………………………………………………………………………… 37 II-13 Number of Enterprises, Sales Turnover and Added Value by Industry ………………………………… 38 II-14 Number of Employed Person by Major Occupation and Year-on-year Difference (Total of Male and Female) ………………………………………………………………………………… 39 II-15 Proportion of Workers by Form of Employment (2010) ………………………………………………… 43 II-16 Trend of the Number of Non-regular Employees ………………………………………………………… 44 II-17 Breakdown of Non-regular Employees (Actual Figures and Composition Ratios) …………………… 45 II-18 Trends in Proportions of Non-regular Employees by Age and Sex ……………………………………… 45 II-19 Reasons for Employment of Non-regular Employees …………………………………………………… 46 II-20 Reasons for Non-regular Employees’ Choice of Present Form of Employment ……………………… 46 II-21 Schematic Image of Restricted Regular Employees ……………………………………………………… 47 II-22 Change in Percentage of First-time Workers Hired as Permanent Employees ………………………… 49 II-23 Status of Employment of 15-to 24-year-olds ……………………………………………………………… 50 II-24 Status of Employment of 25-to 29-year-old Male ………………………………………………………… 50 II-25 Labor Force Participation Rates among Older Age Groups, 1988-2008 ………………………………… 51 II-26 Unemployment Rates among Older Age Groups ………………………………………………………… 52 II-27 Profile of Active Job Opening Ratios by Age Group ……………………………………………………… 53 II-28 Trends in Numbers in Employment and the Ratio of Women in the Total Workforce ……………… 55 II-29 Change in Numbers Employed by Gender and Industry (2002-2012) ………………………………… 56 II-30 Trends in Ratios of Non-regular Employees ……………………………………………………………… 57 II-31 Change in Non-regular Workers as a Percentage of All Workers, by Age Group and Gender ……… 57 II-32 Trends in Gender Disparity in Contractual Wages (Men’s Contractual Wage = 100) ………………… 58 II-33 Trends in the Labor Force Ratio of Women by Age Group ……………………………………………… 59 II-34 Continued Employment Rate around Birth of First Child ………………………………………………… 59 Labor Situation in Japan and Its Analysis: General Overview 2015/2016 iii II-35 Trends in Number of Dual-income & Other Households ………………………………………………… 60 II-36 Housework and Childcare Time by Husbands in Couples with Preschool Children (per Day) ……… 61 II-37 Ratio of Women in “Leadership Positions” in Various Sectors …………………………………………… 62 II-38 Change in Numbers of Foreign Residents by Nation or Region ………………………………………… 65 II-39 Trends in Numbers of Mid- to Long-term Foreign Residents by Status of Residence ………………… 66 II-40 Numbers of Foreign Workers by Prefecture and Status of Residence ………………………………… 67 II-41 Foreign Worker Employment Policy by Employment Type (n=2252, Multiple Answers) …………… 68 II-42 Foreign Worker
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