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Labor Policy

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)

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Labor Policy

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  1. Labor Policy Keiichiro HAMAGUCHI

  2. Chapter 2 Labor Market Policy

  3. Section 3 General Employment Policy

  4. (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.

  5. (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.

  6. (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

  7. (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.

  8. (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.

  9. (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.

  10. (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.

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