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Current Situation and Issues with regard to Foreign Employers in Japan

Current Situation and Issues with regard to Foreign Employers in Japan. Motohisa Anai First Secretary of Labor Affairs Embassy of Japan IAWP International Panel, Richmond, VA June 11 th , 2008. Overview.

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Current Situation and Issues with regard to Foreign Employers in Japan

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  1. Current Situation and Issues with regard to Foreign Employers in Japan Motohisa Anai First Secretary of Labor Affairs Embassy of Japan IAWP International Panel, Richmond, VA June 11th, 2008

  2. Overview • Japan and the United States have a profound relationship with regard to employment as well as trade and politics. • The Japanese government has found it important and useful to provide employment and labor related legal and practical information to foreign employers.

  3. Japanese Companies create a lot of Jobs in the United States • Japan was the third largest foreign employer next to the United Kingdom and Germany in 2005. Source: U.S. Department of Commerce, “Selected Financial and Operating Data of Majority-Owned Nonbank U.S. Affiliates, by Country of Ultimate Beneficial Owner, 2005”

  4. Japanese Companies Have Overseas Bases Around the World Japanese Companies have created many jobs in recent years throughout the world, particularly in Asia Source: Japan External Trade Organization

  5. U.S. Companies are the Largest Foreign Employers in Japan • Foreign employers—at least 10% of the share is held by foreign investors—employ 1 million workers in Japan. • U.S. Companies employ more than 600,000 employers. They share 59.6% of Japanese employees employed by foreign employers.

  6. Many Foreign Companies Still Plan to Expand their Business in Japan • According to the Survey conducted by the Japan External Trade Organization (JETRO) between September and October 2007, 63.1% of respondents plan to expand their business into Japan in the future. • The percentages of respondents planning to “maintain current status” or “reduce scale of business” were 31.4% and 1.5%, respectively. • This result reflects favorable economic conditions and a strong market performance. • It is true that some foreign companies eliminated their business when the Japanese economy faltered during last decade.

  7. Many Foreign Companies Face Challenges in terms of Qualified Workers • 66.2% of foreign companies point to “difficulty in securing personnel” as challenges to setting up/expanding business in Japan. • Other pointed challenges are: • Expensive business costs (60.2%) • High demand level by users (59.6%) • Closed nature and uniqueness of the Japan market (50.6%) • Some employers say it is difficult to find Japanese workers who are fluent in English.

  8. The Efforts of the Japanese Government • In order to prevent avoidable employment and labor related disputes between foreign employers and workers in Japan, the Japanese government created a conference where government, trade unions and employers’ associations can exchange their information and opinions. • The government is also trying to outreach to foreign employers so that they are able to receive legal and practical information with regard to the employment system in Japan.

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