2001 White Paper on Labor

The Ministry of Health, Labour and Welfare (MHLW) presented its White Paper on Labor on July 6. The White Paper addressed issues associated with information technology and its effect on labor practices. The White Paper first questioned whether the spread of information technology would both create new economic opportunities and increase unemployment, and then explored ways to solve problems that may arise with the more widespread use of information technology.

The White Paper outlined three essential points. First, it stated that 2.6 million jobs disappeared as a consequence of the increased use of information technology between 1990 and 1999. This figure, however, was offset by the 5 million new jobs created as information technology pushed up demand for new, lower priced products-a net gain of 2.4 million jobs. The White Paper concluded that overall, increased adoption of information technology improves the job situation.

Second, the White Paper noted that middle management will not become obsolete with the spread of information technology; rather, it stressed that middle management will become more necessary than ever.

Third, the White Paper noted that the virtues of the Japanese labor model remain just as relevant now as when Japan faced similar crises in the past. The White Paper cited three characteristics of the Japanese labor model that will help the country cope effectively with the current set of problems: (1) workers are less resistant to new technologies or to switching to new workplaces because their jobs are guaranteed; (2) because they tend to be employed in the same workplace longer, workers are more willing to share information, knowledge, and expertise with each other; and (3) companies are more willing to invest in employee training because these employees can be expected to work longer for the same company.

The White Paper also indicated that the issue for the next step associated with the spread of information technology lies in building a system that supports a degree of labor mobility while ensuring that the virtues of the traditional Japanese labor system as outlined above remain intact.