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The limit of previous employment policy


How does government employment policy cope with the change of employment environment?

So far, government basically put importance on "maintenance of employment" not to produce the unemployed. Their main policy is to grant employment adjustment subsidy. This is not pointed out so much, but employment adjustment subsidy has the characteristics of emergency measures of work sharing. Surely, if they cope with previous circulation type of economic downturn, emergency work sharing is useful. They can take work sharing as emergency measures in economic downturn and remove them when economy become good.

But the problem Japan is facing is not circulating recession but structural recession which needs drastic reform. The government has begun to expand application of employment adjustment subsidy little by little since 1991. But we cannot deny that they repeatedly take emergency measures. The previous labor maintenance policy has the limitation.

Currently government tries to make flow of labor forces one of their policy. They try to shift labor forces to industry which needs them and develop capabilities.

The prerequisite conditions are demand for employment. We often use the word, 'mismatching' when we discuss flow of labor forces. But the problem is not only 'mismatching' but also the loss of employment. We don't have enough industries to absorb the unemployed. We entered the next stage where we need to create jobs to solve employment problem. Whether we can find employers is the most important issue.

Obviously, government seeks job creation policy. The Ministry of International Trade and Industry helps launch venture business. But I cannot help but have doubts about its effects.

We have to maintain employment by work sharing in the lifetime and take measures for job creation. Then, we have to find employers. What kind of areas are hopeful for job creation?

I think the most hopeful area is "life-support industry," which solves anxiety of civic life.


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