Labor Policy Keiichiro HAMAGUCHI

Chapter 2 Labor Market Policy

Section 3 General Employment Policy

(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.

(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.

(3) Workforce Mobilization Policy 1960 revised Employment Security Law provided placement over wide areas 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

(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) Temporary Law for Redundant workers in Specified Sectors in Recession set “endeavor to prevent the unemployment” as a task of employers.

(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 revised Employment Measures Law set to promote the smooth re-employment of the job losers Labor Turnover Promotion Subsidy which was paid to employers who give workers job- seeking leave or out-placement services.

(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 Local Employment Development Promotion Law expanded the subsidy to the costs of building facilities and equipments.

(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.