The Japan Labor Flash
No.37
Email Journal May 2, 2005
Statistical Reports
Main Labor Economic Indicators
Current Topics
Middle-aged and Elderly "Freeters" Still Increasing …etc.
Public Policies
The Need to Establish a "Labor Contract Law" …etc.
Public Policies
Expanding the Scheme to Assist Employees to Contribute to Society
…etc.
Public Policies
Signs of a Favorable Reappraisal of Japanese-style Employment
Practices
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200505/index.htm
Current Topics
-Middle-aged and Elderly "Freeters" Still Increasing-
In April this year, the UFJ Institute, a private research institute,
released a report entitled "The Increasing Number of Middle-aged
and
Elderly Freeters." The report estimates that the number of "middle
-aged and elderly persons" who remain freeters at the age of 35 or
above will increase from 460,000 in 2001 to 1.32 million in 2011, and
exceed two million in 2021.
It also forecasts that, if the number of freeters who earn less
than regular employees exceeds two million, tax revenue will decrease
by 1.14 trillion yen, social insurance premiums by 1.09 trillion yen,
and disposable income by 5.8 trillion yen, which is likely to depress
the growth rate of GDP by 1.2 percent. The report at the same time
implies that an increase in the number of freeters of prime marriageable
age could be partly responsible for the falling birthrate.
US$=\105 (May 2, 2005)
-JPC-SED Surveys Wage Levels of White-Collar Workers by Occupation-
On March 31, the Japan Productivity Center for Socio-Economic
Development published the findings of their FY 2004 Survey of Wages
in terms of Ability and Job Type. This nationwide survey, intended
to obtain information on wages by occupation that would serve as
a proxy for information concerning the traditional criteria for
seniority wages, such as age, tenure, gender, and educational level,
investigated the wage levels of 18 job types for white-collar workers.
The survey targeted 8,080 member companies and organizations, and
the valid replies totaled 739, giving an effective reply rate of 9.1
percent.
Wage levels, averaged out in terms of region and company size, are
328,000 yen for salespersons for new business development; 400,000
yen for managers of small shops; 272,000 yen for programmers; 320,000
yen for systems engineers; 220,000 yen for assistant clerical staff;
and 392,000 yen for workers engaged in business planning.
Public Policies
-The Need to Establish a "Labor Contract Law"-
The Ministry of Health, Labour and Welfare in mid-April announced
an interim report by a "Study Group on Future Legislation for Labor
Contracts." Personnel management has increasingly been moving towards
individualization and diversification, and employment patterns and
workers' attitudes towards work have been also diversifying. As a
result, laws and legal precedents based on case law currently in
effect are unable to handle current labor contract issues adequately.
Since April last year, the study group has been seeking ways of
reorganizing, improving and clarifying the rules concerning labor
contracts so as to realize work environments where employees can work
safely and satisfactorily and forge sound labor-management relations
in the future.
In its interim report, the study group emphasizes the need to
establish a new labor contract law that lays down fair and transparent
rules for labor contracts, so as to enable labor and management to
determine their labor conditions on a virtually equal footing as well
as to prevent mutual conflicts. Specifically, it suggests the
establishment of a permanent labor-management committee as a possible
course for the solution. The group intends to release its final report
this autumn.
-Disparity of Views between Business Establishments and Employees over
"Positive Action"-
In April, the Tokyo Metropolitan Government published the results of
a "Survey concerning Outstanding Performances by Females in Companies,
and Positive Action." The survey, carried out in September 2004,
was
aimed at 2,500 business establishments with 30 or more employees
located in Tokyo and covering 11 industries; and at 5,000 male and
female employees (2,500 each), working for these establishments. The
return rate was 34.6 percent for the establishment survey, and 32.1
and 34.9 percent, respectively, for the individual surveys of males
and females.
The survey has found a gap in outlook between establishments and
employees concerning the progress of Positive Action: more than half
of the former replied that Positive Action was being taken, whereas
about 70 percent of the females and more than half of the males
surveyed denied this.
Among the reasons for the delay in getting to grips with Positive
Action, establishments cited their small number of female employees,
and the short length of service among female staff. On the other hand,
about half of the female respondents attributed their difficulty in
demonstrating outstanding performance at the workplace to insufficient
recognition and understanding on the part of male workers.
Public Policies
-Expanding the Scheme to Assist Employees to Contribute to Society-
Mitsubishi Corporation has expanded its scheme to assist its
employees in participating in activities which contribute to society.
In this fiscal year, it has introduced a new scheme whereby it will
set aside a certain amount of cash for each employee participation
in volunteer activities. The money thus accumulated will be donated
to various organizations and institutions at the end of each fiscal
year. It has also established a volunteer leave system that is open
to those who wish to participate in such activities.
The scheme is open to 5,000 executive and regular employees in Japan.
One instance of participation in volunteer activities generates one
token of an imaginary currency (convertible to 500 yen). In the
meantime, Mitsubishi Corporation launched this month a volunteer
database which lists 30-40 volunteering activities on the website,
including activities which it sponsors itself, and various other
activities which it assists or co-sponsors. Employees who wish to
take part can easily register via the Internet.
(Nikkei Sangyo Shimbun, April)
-Policies on NEETs: Major Enterprises Participate in Assistance with
Job Placement via Corporate-Academic Collaboration-
To put a brake on the increasing number of NEETs (young people who
are not in full-time education, employment or training), who reportedly
total about 850,000 at the moment, private companies and universities
have been stepping up collaborative efforts to assist these young
people to find employment. In March 2005, the Kanto Employment Creation
Organization Inc. (KECO), financed by Pasona, Sony, Canon and other
leading companies, launched a "Total assistance service for job
placement," reaching its first contract agreement with Shumei
University. Under this service, KECO takes on career education and
internship programs from universities on contract basis.
An educational service provider, Benesse Corporation, provides
universities with courses on career education in their curriculums,
using its unique study materials and curriculum guidelines, together
with the dispatch of career counselors, that help students to develop
a favorable outlook on work and improve their attitudes towards future
working life. Benesse has also launched a portal site to offer job
searchers information and introduced an internship program; it has
already embarked on collaboration with Seikei University and other
academic institutions.
Apart from these, Tokyo Legal Mind K. K., a well-known prep school
for various qualifications and public service examinations, is also
running a new type of "university" focusing on practical vocational
education directly useful in getting a job, which makes a clear
departure from academic education at traditional universities.
(Nihon Keizai Shimbun April, Nikkei Sangyo Shimbun March, etc.)
Public Policies
-Signs of a Favorable Reappraisal of Japanese-style Employment
Practices-
On March 31, the Japan Institute for Labour Policy and Training
(JILPT) published the results of their 4th Survey on Working Life.
The latest publication, the fourth of a series, was carried out
in August and September 2004, aimed at 4,000 persons aged 20 or above
working as regular, temporary or part-time workers. The interview
survey received answers from 2,729 respondents.
It is a well-known fact that "life-long employment" and the
"seniority-based wage profile," which have long been regarded
as
pillars of Japanese-style employment practices, are now often
referred to as systems of the past. Amidst this changing evaluation
of employment systems, the survey findings surprisingly revealed that
the proportion of those who support "life-long employment" and
the
"seniority-based wage profile," has been increasing over the
last
five years, and marked a record high in the latest survey.
Continued on;
http://www.jil.go.jp/english/archives/emm/2005/no.37/37_si.html
