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Presentation to the OECD Forum on Reassessment of the OECD Jobs Strategy --Asian-Pacific Perspectives Ministry of Health, Labour and Welfare July 8, 2005.

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Presentation on theme: "Presentation to the OECD Forum on Reassessment of the OECD Jobs Strategy --Asian-Pacific Perspectives Ministry of Health, Labour and Welfare July 8, 2005."— Presentation transcript:

1 Presentation to the OECD Forum on Reassessment of the OECD Jobs Strategy --Asian-Pacific Perspectives Ministry of Health, Labour and Welfare July 8, 2005 THE JAPANESE EXPERIENCE

2 Source: Figures of 1995 and 2000 from Statistics Bureau, the Ministry of Internal Affairs and Communications, “National Population Census ”. Figures of 2003 from Statistics Bureau, the Ministry of Internal Affairs and Communications, “Population Estimates;” and figures of 2005 and after from the National Institute of Population and Social Security Research, “Projected Population of Japan (estimated in January 2002)Medium variant ”. Changes in the Total Population Total population in 2003 was million. From the 2003 level, it is expected to decrease by 140,000 in 2010, by 1.35 million in 2015, by 3.51 million in 2020, by 6.48 million in 2025, and by million in ProspectActual (Year ) ( 20.9% ) ( 25.9% ) ( 28.5% ) ( 30.0% ) ( 35.2% ) ( 42.4% ) ( 46.4% ) ( 48.0% ) ( 50.0% ) 2,001 1,845 1,7901,773 1,707 1,620 1,510 1,409 1,323 8,717 8,600 8,540 8,459 8,167 7,730 7,445 7,233 6,958 1,826 2,227 2,431 2,539 2,874 3,277 3,456 3,473 3, ,000 4,000 6,000 8,000 10,000 12,000 14, years old and over 15 ~ 64 years old 14 years old and under Percentage of population 65 and over to population (%) (10,000 people) 12,557 12,69212,76212,77112,74812,627 12,411 12,114 11,758 1

3 Changes in the Working-Age Population The working-age population in 2003 was 85.4 million. From the 2003 level, it is expected to decline by 810,000 in 2005, by 3.73 million in 2010, by 8.1 million in 2015, by million in 2020, by million in 2025, and by million in A significant decrease is expected particularly after ,717 8,6008,5408,459 8,167 7,730 7,446 7,233 6,957 2

4 Trends in Unemployment Rate, and Ratio of Active Job Openings to Applicants The employment situation continues to improve, though some severe aspect remain (month) (%)(%) Unemployment Rate Over 4% for the first time (4.0% April 1998) Unemployment rate (right scale) Over 5% for the first time (5.0%, July 2001) Record-high unemployment rate 5.5% (June and August 2002 and January 2003) Record-high number of unemployed: 3.85 million (April ) Under 0.5times for The first time (0.49 times, September 1998) Recent peak of 0.65 times (from November 2000 to January 2001) Record-low ratio of 0.46 times (May and June 1999 Ratio of active job openings to applicants (left scale) Recent bottom of 0.51 times (from December 2001 to February 2002) Ratio of Active job Openings to Applicants: 0.94 times (May. 2005) Unemploymen t Rate: 4.4% Number of Unemployed: 3.07 million (May. 2005) Ratio of Active Job Openings to Applicants 4.5 (times) Source: The Ministry of Health, Labour and Welfare,“Report on Employment Service” and Statistics Bureau, the Ministry of Internal Affairs and Communications, “Labour Force Survey” Note: The shaded areas indicate the periods of economic recession. Recent Employment Situation 3

5 Note: Figures as of May Unemployment rate and ratio of active job openings to applicants of “total of age” are seasonally adjusted. Figures for each age group are not adjusted. Source: Statistics Bureau, the Ministry of Internal Affairs and Communications, “Labour Force Survey” and the Ministry of Health, Labour and Welfare, “Report on Employment service” Employment situation by age group For young people, ratio of active job openings to applicants is high, but the unemployment rate is high level. For middle-aged and old people, ratio of active job openings to applicants is low, and the unemployment rate is high level. Ratio of active job openings to applicants (left scale) Unemployment rate (right scale) (%) Total of age 15 ~ 2425 ~ 3435 ~ 4445 ~ 5455 ~ 5960 ~ ( times ) ( age ) 4

6 The unemployment rate declines in all regions. The decline was relatively large in Hokkaido and Chugoku regions. Ratio of active job openings to applicants is higher than 1 for 19 months in Tokai region, 12 months in Kita-Kanto and Koshin regions, 7 months in Minami- Kanto and Chugoku regions, and 5 months in Hokuriku region. On the other hand, amount of increase in ratio of active job openings to applicants is relatively small in Hokkaido, Tohoku, Shikoku, and Kyushu regions. Unemployment rate (%) Ratio of active job openings to applicants (times) Jan.-Mar. 2005May 2005 Nationwide4.7(-0.3)0.94(0.13) Hokkaido5.9(-1.0)0.57(0.05) Tohoku5.6(-0.6)0.69(0.06) Minami-Kanto4.6(-0.2)1.10(0.21) Kita-Kanto and Koshin 3.8(-0.2)1.08(0.09) Hokuriku4.1(-0.4)1.10(0.21) Tokai3.2(-0.5)1.43(0.22) Kinki5.7(-0.3)0.91(0.13) Chugoku3.6(-0.8)1.07(0.09) Shikoku4.4(-0.5)0.84(0.06) Kyushu5.3(-0.2)0.67(0.07) Source: Statistics Bureau, the Ministry of Internal Affairs and Communications, “Labour Force Survey” and the Ministry of Health, Labour and Welfare, “Report on Employment Service” Employment situation by region 5

7 Support by Public Employment Security Offices: “Hello Work” ○ Employment through Public Employment Security Offices is following an upward trend. In fiscal 2004, approximately 2.13 million people, a 1.2% decrease since the previous year, obtained new jobs. The rate of obtaining a job in FY 2004 was 30.7 %, a 1.9% increase since the previous year. → The target for FY 2005 is approximately 32 %. ○ Public Employment Security Offices are open during evening on weekdays and on Saturdays. (1) Vigorous Promotion of Support for Early Re-employment Mainly for people who cannot visit Public Employment Security Offices during the daytime on weekdays, such as job-seekers who are working, some offices are open during evening on weekdays and on Saturdays, providing consultation and reference services. As of June 30, 2005: 92 offices Employment Measures in Japan (10,000 people) Number of people obtaining a job (left scale) The rate of obtaining a job (right scale) (FY) 6

8 ○ Career consultation for job-seekers ○ Re-employment support programs are provided by specialists in early re-employment. Targeting job seekers who are strongly in need of quick re-employment, 700 specialists (employment support navigators (private sector experts, and experienced workers)) have been assigned to Public Employment Security Offices, to provide individuals with detailed support in their re- employment efforts. ○ Re-employment planners provide support. The targets of re-employment support are involuntary displaced job-seekers (aged 35 or older), or who have given up their own businesses, who need to contribute to their household finances. Re- employment realization plans are formulated for individual job-seekers, based on which comprehensive consultations and support are provided. Individual consultation and assistance Promotion of service for worker-seeking companies ○ Promotion of Finding job vacancies ○ Strengthening of service for worker-seeking companies A variety of job information utilizing the internet is provided ○ Job information on the public and private sectors is provided through ‘Shigoto Joho (job information) Net’. ○ Job information covered by all Public Employment Security Offices nationwide is provided by ‘Hello Work Internet Service’. ○ Information is provided on a variety of common unemployment issues. 7

9 About 700 job supporters for young people have been assigned to Public Employment Security Offices, to offer prospective graduates services ranging from understanding jobs to settling down at companies. They visit schools to provide guidance and consultation to individuals and groups of prospective graduates and accompany them to companies. To facilitate a smooth shift to regular employment, we give a subsidy of \50,000 per person to companies that hire people under the age of 35 (including unemployed graduates) for a short-term trial period (three months in principle). (2) Promotion of Measures for the Employment of Young People ○ Job supporters for young people aid prospective graduates in finding jobs. ○ We promote a smooth transfer from trial employment to regular employment for young people. ○ We promote measures for the employment of young people in cooperation with local parties concerned by establishing one-stop service centers for young people (known as “Job Cafés”). In cooperation with companies and schools, prefectures have established “Job Cafés” which provide one-stop services, including ・ Access to information on work, ・ Opportunities for work experience, and ・ Various support services for employment. The central government supports the management of Job Cafés. ○ To train young people, we have introduced a new human resources development system of real- work related vocational education (Japanese version of Dual System). ○ Schools for the Independence of young people are established, to improve young people’s motivation to work. 8

10 (3) Creation of Employment Opportunities by Local Initiative Promotion of the Regional Employment Creation Programs ○ In the Regional Employment Creation Backup Program, we support municipalities to draw up plans for employment creation within their administrative regions by providing them with expert advice, information about successful employment creation cases, etc. 120 regions covered by the program ○ In the Regional Program for Employment Creation Proposal (Package Program), we select, in a contest format, proposals for projects that are effective in creating jobs and commission municipalities that made the proposals to proceed the projects. ○ To those individuals who are setting up business in service industries that contribute to the regional community or in targeted industries set by the regional community, we subsidize their preliminary expenses and employment expenses. 65 regions covered by the program (35 additional regions will be selected each year) Subsidies: One thirds of preliminary expenses (ceiling \5 million) plus \300,000 for each employee 32 regional communities have officially set their targeted industries (as of April 1, 2005). 67 business plans have been submitted for the subsidy (as of April 2005). 9

11 Efforts toward securing opportunities to enable people to work until age 65 (4) Promotion of Employment Measures for Old Persons ○ The Law concerning Stabilization of Employment of Old Persons was revised, aiming to secure employment until age 65, to include raise of the mandatory retirement age to 65, and introduction of a continued employment system. It was made obligatory for the employers to give reasons when they set an upper age limit for recruitment and employment of workers (already enforced in FY 2004). Raising the retirement age to age 65 is planned to be enforced on April 1, [Rate of job offers at Public Employment Security Offices without age restriction] 13.1% in May 2003 → 19.2% in May 2004 → 38.6% in May 2005 [Rate of companies where employees can work at least until 65] 68.3% in 2002 → 67.1% in 2003 → 69.2% in

12 (Total population: million) 2004 If no measures were taken: If various measures were implemented: → up 600,000 Preparation of an environment in which young people can play an active role Assistance for balancing work and family responsibilities → up 1.7 million Society in which workers can continue to work until 65 → up 1 million (of which 800,000 are women) million workers million workers 66 million workers Down 420, million 11.5 million million 12.8 million million An increase of 3.3 million workers million 60 and over 30 to to 29 Down 3.75 million million 9.6 million million (Total population: million) Source: Figures of 2004 from the Ministry of Internal Affairs and Communication, “Labour Force Survey”. Figures of “if no measures were taken” were estimated by the Ministry of Health, Labour and Welfare, based on “Labour Force Survey”. Figures of “If various measures were implemented” were estimated by the Ministry of Health, Labour and Welfare. Japan’s Employment Strategy for the Next 10 years 11

13 Source: The National Institute of Population and Social Security Research, “Projected Population of Japan (estimated in January 2002)” Aging of Baby-Boomer Generation The baby-boomer Generation (born ) will reach 60 in 2007 and 65 in The baby-boomer generation (born ) Year 2000 Year 2007 Year million 6.69 million 6.46 million (10,000 people) (age) The baby-boomer generation (born ) 12

14 Labor Force Participation Rate by Age and Sex Looking at the labor force participation rate by age and sex, the graph showing the male participation rate forms a trapezoid, while that of the female participation rate is M-shaped. But the potential female participation rate, which includes women who are not employed but are willing to work, forms a virtual trapezoid. Source: Statistics Bureau, t he Ministry of Internal Affairs and Communications, “Labour Force Survey” and “Labour Force Survey Detailed Tabulation” ~ ~ 2425 ~ 2930 ~ 3435 ~ 3940 ~ 4445 ~ 4950 ~ 5455 ~ 5960 ~ ~ (%) Male participation rate (2004) Female participation rate (2004) Potential female participation rate (2004) (age) 13


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