Labor Policy

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Labor Policy

• Keiichiro HAMAGUCHI

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Chapter 2

• Labor Market Policy

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Section 3

• General Employment Policy

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(1) Unemployment Countermeasures (Direct Job
Creation)

• Urgent Unemployment Countermeasures Law public
  works to absorb the jobless (direct job creation
  scheme)
• Registered unemployed increased under the
  economic growth.
• Government stopped the inflows and set a
  mandatory retirement age at 65.
• Finally abolished in 1995.

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(2) Employment Measures for Redundant Coal Miners

• Coal was a leading industry in Japan.
• Coal depression caused by energy revolution
• Temporary Law for Redundant Coal Miners enacted
  in 1959 made direct job creation scheme in coal
  mine areas.
• Last coal mine closed in 2000.

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(3) Workforce Mobilization Policy

• 1960 revised Employment Security Law provided
  placement over wide areas.
• 1966 Employment Measures Law advocated the
  modernization of labor market labor market based
  on distinct jobs and vocational ability.
• ILO Convention No.122 on Employment Policy set
  full employment as a major goal

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(4) Employment Stabilization Policy

• 1974 revised Employment Insurance Law focused on
  preservation of the workforce within company.
• Employment Adjustment Subsidy was paid to
  employers who, without dismissals, adopt measures
  as temporary leave with pay, in-house training,
  temporary transfer to other companies (half of
  paid wages).
• 1977 Temporary Law for Redundant workers in
  Specified Sectors in Recession set endeavor to
  prevent the unemployment as a task of employers.

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(5) Mobilization Policy Again

• 1995 Labor Turnover Employment Stability Subsidy
  was paid to employers who get workers off to
  other companies via transfer or placement.
• 2001 revised Employment Measures Law set to
  promote the smooth re-employment of the job
  losers.
• 2001 Labor Turnover Promotion Subsidy which was
  paid to employers who give workers job-seeking
  leave or out-placement services.

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(6) Local Employment Development

• 1975 Local Employment Promotion Subsidy was paid
  to employers who establish or expand the
  facilities or equipments and hire new workers.
• 1987 Local Employment Development Promotion Law
  expanded the subsidy to the costs of building
  facilities and equipments.

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(7) Recent Development in Employment Policy

• Towards a Market Society of High Quality
  Fairness, Security and Diversity presented as
  key standards of employment and labor policy
• (1) ensuring of fairness
• (2) ensuring of security
• (3) respect for diversity
• Realization of a Society in Which Everyone can
  Show their Ability, Work without Anxiety and Live
  in Security put the ensuring of security and
  career formation as a first priority.
• new policy orientation which combines fairness
  and diversity with employment security comes to
  the stage.