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Employment Measures in Post-Financial Crisis Japan

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Employment Measures in Post-Financial Crisis Japan Employment measures in Post-Financial Crisis Japan Wednesday, January 7, 2009 Ministry of Health, Labour and Welfare Table of Contents 1. Current state of the economy, employment and unemployment 2. Outline of employment and labour policies (1) New Employment Strategy (2) Immediate Policy Package to Enhance Social Security Functions - Five Relief Plans(excerpts) 3. Outline of employment and labour policies (1) Employment Measures in the “Comprehensive Immediate Policy Package to Ease Public Anxiety” (2) Employment Measures in “Measures to Support People's Daily Lives” (3) Employment-Security Programs in “Immediate Policy Package to Safeguard People's Daily Lives” 4. Outline of major employment measures 1 Current state of the economy, employment and unemployment 1 (Signs of a worldwide depression and impacts on Japan) > The global financial capital market is in a “once-in-a-century” period of turmoil, and there are increasing signs of worldwide economic recession. > Although the Japanese financial system is healthier than those of other countries, the Japanese economy has already fallen into a recession, which could be longer and deeper. > The real GDP growth rate in the 3Q 2008 period declined 0.1% from the previous period (down 0.4% annually), posting a negative figure for two consecutive quarters. (Current employment/unemployment situation) > The current employment/unemployment situation is in a downturn, as shown by the declining ratio of active job openings to applicants. - Active job openings ratio has been falling from the most recent peak level of 1.07 in June 2007 to 0.80 in October 2008. - Job seekers at Hello Work (the public employment security office), mainly middle-aged or older jobless workers that had to leave their job due to reasons attributable to their business owners, are significantly increasing in September and October 2008. - Total unemployment ratio stands at 3.7% in October 2008, hovering around 4%. The number of totally unemployed is 2.55 million. > If Japanese economic recession becomes longer, the employment/unemployment situation may deteriorate further. 2 Trends in the ratio of unemployed in labour force/unemployment rate and the完全失業率と有効求人倍率の動向 ratio of active job openings to applicants Active job openings20年9月の ratio The current employment/unemployment situation is in a downturn, as demonstrated by the declining stands有効求人倍率 at 0.80 in ratio現下の雇用失業情勢は、有効求人倍率が低下するなど、下降局面にあります。 of active job openings to applicants. October0.84倍 2008. (times)（倍） （％） 1.10 5.5 1.02倍1.02 in Record過去最高 5.5％ high 5.5% in Sep.4年9月 1992 Jun.& 14年6月,8月 Aug. 2002 and 15年4月Apr. 2003 1.00 1.07, the latest 5.0 peak有効求人倍率 in the ratio 直近のピークof active job Ratio of active job openings to openings19年6月 to 有効求人倍率(左目盛）applicants (left scale) applicants,1.07倍 Number完全失業者数 of totally 0.90 of unemployed: 3.85 in Jun. 2007 4.5 過去最高 385万人 million, record high, 15年４月 in Apr. 2003 0.80 Unemployment rate 4.0 完全失業率(右目盛）(right scale) 3.6%,完全失業率 the latest bottom in 直近のピークthe unemployment 0.70 0.46, the worst ratio, rate,19年7月 Jul. 2007 3.5 過去最低 0.46倍 3.6％ in May11年5,6月 and Jun. 1999 2.2% in 2.2％ 20年9月の Sep.4年9月 1992 In October 2008, 0.60 unemployment完全失業率 rate 3.0 stands4.0％ at 3.7%; and the number of totally unemployed完全失業者数 persons is 2.55271万人 million. 0.50 0.50,直近の底 the most 2.5 recent0.50倍 bottom, in (Valley) Jan. 2002 （谷） （山）(Peak ) （谷）(Valley) (Peak（山） ) （谷）(Valley) 14年1月 Oct. 1993 Nov. 2000 Jan. 2002 H5.10 MayH9.5 1997 Jan.H11.1 1999 H12.11 H14.1 0.40 2.0 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Source) “Labour Force Survey,” MIC, “Employment Security Statistics,” MHLW *The grey zone shows the recession period. 3 Change in the number of regular and non-regular employees > The number of regular employees has declined in recent years (after a temporary increase started in 2006, the decline resumed in 4Q/2007). The number of part-time, dispatched, and contracted workers has increased mainly among younger persons. * The number of part-time, dispatched, and contracted workers (age 15-34) as % of the total workforce (except executives): 4.7% in 1985, 7.3% in 1995, 11.7% in 2005, 11.2% in 2007 > Increase in the percentage of dispatched workers and part-time workers who cited “There was no company to offer me a full-time position” as the reason for their working in current positions. * Dispatched workers: 19.2% in 1994 → 40.0% in 2003; Part-time workers: 11.9% in 1994 → 21.6% in 2003 ** (in 10,000s of people) Arbeit 6,000 Non- (temporary workers) regular 342 (33.5%) (20.9%) (26.0%) (32.6%) (33.0%) 5,000 (20.2%) (16.4%) 1,001 1,273 1,633 1,677 1,732 4,000 881 (＋120) (＋272) (＋44) (＋55) (＋360) Part-time workers 655 (＋226) 822 3,000 Regular 2,000 3,779 Dispatched workers 3,488 3,630 3,343 3,374 3,411 3,441 133 (＋291) (－149) 1,000 (＋145) (－ 256) (＋37) (＋30) Contracted or entrusted employees and other 435 0 1985 1990 1995 2000 2005 2006 2007 Source: “LabourSource Force 2000年までは「労働力調査(特別調査)」(2月調査)、2005年以降は「労働力調査(詳細集計)」(年平均)による Survey (Special Survey)” for data through 2000; “Labour Force Survey (Detailed Tabulation)” (annual。 average) for 2005 and later (Note) Employment categories are based on those defined by employers. * Source: “General Survey on diversified Types of Employment,” MHLW 4 Facts about freeters and NEET The number of so-called “freeters” continued to increase until 2003, reaching 2.17 million, followed by a decline for four consecutive years. The situation with “older freeters,” aged 25 or older, has been slow to improve. The number of so-called “NEET” remains almost flat after the increase from 0.4m (1993) to 0.64m. Change in the number of freeters Change in the number of NEET (Population in 10,000s) (Population in 10,000s) 70 64 64 64 64 250 62 62 217 214 60 208 201 17 18 18 19 200 187 18 18 181 48 Age 50 30-34 98 151 91 99 40 40 11 150 97 40 18 92 Age 18 19 92 99 18 25-34 20 18 Age 49 25-29 101 30 13 100 10 10 79 29 17 20 16 Age 23 18 17 16 16 20-24 50 117 119 115 15 104 Age 13 12 50 102 95 17 89 15-24 72 10 57 Age 12 11 15-19 34 8 99 10 9 10 9 0 0 1982 87 92 97 2002 03 04 05 06 07 1993 96 99 2002 03 04 05 06 07 (Year) (Year) (Source) Data through 1997: Specially compiled by Policy Planning and Research (Source) “Labour Force Survey,” Statistics Bureau, MIC Department, Ministry of Labour, based on “Employment Status Survey” of Statistics Bureau, MIC; Data after 2002: “Labour Force Survey (detailed results),” Statistics Bureau, MIC (Note) “NEET” is defined as the non-labour force population aged 15-34 and not engaged in household labour or education. (Note) Since 2002, “freeters” have been defined as people aged 15-34 and graduated from school (and unmarried in the case of female), and their population is the sum of the following: 1 Workers whose employment category set by the employer is “part-time” or “arbeit” (temporary worker); 2 The unemployed who are looking for part-time/arbeit jobs; and 3 The part of the non-labour force population that wish to find part-time/arbeit jobs and not are not engaged in household labour or education. 5 Labour force prospects { Japan can make the pace of decline in its labour force slower than that in the total population if it creates an environment where everyone - youth, women and older people alike - can work based on their personal skills and willingness to work. Labour force population / 52.1% 50.0% 52.7% 48.5% 53.6% Total population (124.46m) down about 2.6% (115.22m) down about 9.8% (115.22m) down about 9.8% Total population (127.76m) (124.46m) down about 2.6% (65.56m) down about 1.5% (55.84m) down about 16% (61.80m) down about 7% Labour f orce population (66.57m) (62.17m) down about 6.6% Increased by about 3.4 Decreased by Decreased by Increased by about 6 Over million Decreased by 60 years old about 4.4 million about 1 million Decreased by million by various by various measures about 10.7 million measures about 4.8 million 967 1,173 Support for older people 1,085 1,274 30 to 59 years working old Support for older people → Increased by about 900,000 1,037 working →Increased by about 2 4m Support for work-life Support for work-life 15 to 29 4,362 balance (Support for women balance (Support for women 4,219 year s ol d 4,055 working) working) 3,887 → Increase by about 3,619 → Increase by about 1.6m(including 1.2m increase 2.7m(including 2.2m increase for women) for women) Support for young people Support for young people working working 1,329 → Increased by about 900,000 1,163 1,077 928 → Increased by about 900,000 1,019 Without Promoting participation With promoting participation in Without Promoting With promoting 2006 in the labour market the labour market 2017 2030 (Source) Total population: For 2006, “Population Estimates,” Statistics Bureau, Ministry of Internal Affairs and Communications; for 2017 and 2030, “Population Projections for Japan: 2006-2055, December 2006,” National Institute of Population and Social Security Research.
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