The Japan Labor Flash No.87
Email Journal July 2, 2007

Statistical Reports
Main Labor Economic Indicators
TANKAN
Current Topics
Japan Productivity Center for Socio-Economic Development Proposes
Employment Measures for Elderly Workers including Those Aged 65
and Above
Work-related Suicides Increase in 2006
Public Policies
Council on Economic and Fiscal Policy Submits 2007 "Large-Boned
Policy"
White Paper on Single-Mother Families: Increased Number of Single
-Mother Families and their Average Income
News Clippings
Allowances in Kind to Support Child-Rearing
First Female Branch Managers at Leading Banking Institution
Special Issue
2007 Spring Joint Labor Negotiations: Pay Hikes and Overviews


Statistical Reports

-Main Labor Economic Indicators-

http://www.jil.go.jp/english/estatis/eshuyo/200707/index.htm


-TANKAN-

Short-term Economic Survey of Entereprises in Japan
-July 2, Monday, released by the Bank of Japan

http://www.boj.or.jp/en/type/stat/boj_stat/tk/yoshi/tk0706.htm

Current Topics

-Japan Productivity Center for Socio-Economic Development Proposes
Employment Measures for Elderly Workers including Those Aged 65
and Above-

On June 5, the Japan Productivity Center for Socio-Economic
Development published a set of proposals entitled Employment and Career
Measures for the Elderly in the Years Preceding 2012. The proposals,
emphasizing the necessity of implementing employment measures for
elderly workers by 2012 when the "baby boomers" reach 65, suggest that
the Employment Insurance Law should be revised to cover workers aged 65
and above, and that subsidies for continued employment of elderly workers
should be extended to those aged 65 and above.

The Center also published the findings of a survey on re-employment
of workers who retired upon reaching the mandatory age. According to
the findings, 60.1 percent of those who retire from their companies
in fiscal year 2007 at the mandatory age of 60 are expected to be
re-hired by the same companies. The figure is considerably higher than
the figure marked last year, 46.6 percent. (The survey, addressed to
all 2,590 listed companies, was carried out between November 2006 and
January 2007. Effective returns totaled 241.)

-Work-related Suicides Increase in 2006-

A total of 32,155 people took their own lives in 2006, a drop of
397 from the previous year, according to a "Summary on Suicides in
2006" published in June by the National Police Agency. Of those who
left suicide notes, cases citing economic or livelihood difficulties
totaled 3,010 (28.8 %), a drop from 3,255 last year, and those citing
family troubles 1,043 (10.0 %). Work problems were cited in 6.8 percent
of the cases where notes were left, or 709 deaths, an increase from
the figure of 654 deaths marked last year.

By age, suicides by people aged 60 or older accounted for 34.6 percent,
followed by those in their 50s (22.5 %), 40s (15.6 %), and 30s (14.0 %).


Public Policies

-Council on Economic and Fiscal Policy Submits 2007 "Large-Boned
Policy"-

"Large-boned policy" is the term which former Prime Minister Junichiro
Koizumi started to use as a catchphrase in Cabinet-led budget formulation
when its Basic Policies for Economic and Fiscal Management and Structural
Reform of the Economy and Society were submitted in June 2001, and whose
use has since become widespread among the public.

At a meeting held in mid-June, the Government's Council on Economic
and Fiscal Policy approved the draft of a "2007 Basic Policy (large
-boned policy)" with, as its mainstays, "strengthening the potential
for growth," "construction of an administrative and fiscal system for
the 21st century," and "realizing a sustainable and safe society."

Where steps aimed at strengthening the potential for growth are
concerned, the Basic Policy puts forward a program to accelerate
growth which aims to increase labor productivity by 50% or more for
five years. Specific strategies for realizing it include a system
for increasing vocational skills and a raise in the level of wages by
promoting a project to improve productivity among SMEs. As for reform
of the labor market, the drawing up of action guidelines for realization
of a work-life balance is cited. The policy was submitted on June 19.

-White Paper on Single-Mother Families: Increased Number of Single
-Mother Families and their Average Income-

On June 1, the Government approved a fiscal year 2007 White Paper
on Single-Mother Families (an annual report on assistance in finding
employment for mothers in female-headed households). The White Paper
states that the average income of female-headed households in 2005
totaled 2.334 million yen, or 831,000 yen per household member.
In female-headed households, 83.0 percent of mothers were employed:
39.2 percent of them had regular jobs and 49.0 percent temporary or
part-time jobs.

As of the end of February 2007, the number of recipients of child
-rearing allowances for single-mother families had increased for nine
successive years, totaling a record high of 987,450. Behind the increase
lies the fact that the number of divorces has stood at a significant
250,000 each year, resulting in a continued increase in the number of
female-headed households.

US$=123yen (July 2, 2007)


News Clippings

-Allowances in Kind to Support Child-Rearing-

An increasing number of food and daily commodity manufacturers are
supplying employees who have newborn babies with their own products.
With the industry as a whole faced with measures to cope with the
falling birthrate, they aim to alleviate, within their own limited
resources, the burdens of child-rearing for employees.

In April, Meiji Dairies Corp. started to grant employees with newborn
babies 20,000 yen worth of powdered milk, baby foods and other baby
products, in addition to the existing allowance of 500,000 yen for
employees who have recently given birth. "Since the falling birthrate
has an impact on the business performance of food manufacturers," says
a member of the company's human resources staff, "we decided to launch
a new type of assistance which firms in other sectors cannot provide."

In February, Unicharm Corp. started to give a three-month supply of
disposable nappies and other baby produts to employees with babies aged
three years or younger, if they wish. Eligible employees are allowed to
request the service as many times as they wish three months after each
previous request.
(Nihon Keizai Shimbun, June)

-First Female Branch Managers at Leading Banking Institution-

Resona Bank, Ltd., opening recruitment to the public, has decided
to hire three women as branch managers. Of some 70 applications, some
30 percent came from women.

The three recruits have work experience in megabanks or securities
companies, and Resona expects them to play important roles immediately.
In early autumn and later this year, the newly hired managers will be
sent to branches specializing in retail customers in Tokyo, Osaka and
other cities.

Traditionally, branch managers are appointed from within banks, so
this is the first time for a leading banking institution to recruit
candidates from outside.
(Nihon Keizai Shimbun, June)


Special Issue

-2007 Spring Joint Labor Negotiations: Pay Hikes and Overviews-

On June 6, Nippon Keidanren (the Japan Business Federation) published
its final compilation of results of the 2007 Spring Joint Labor
Negotiations at large firms, and the third-round compilation of
corresponding results at small and medium-sized enterprises. According
to the survey, 233 large firms, or 86.6 percent of the total 269 large
firms surveyed, responded to the questionnaire. The weighted average
pay hike (includes periodical pay raise) at 114 firms of them, with
the exception of 119 firms whose average pay hikes are unknown, was
- 6,202 yen, an increase of 1.90 percent. The figure was higher by
389 yen, or 0.14 percentage points, than the previous year, exceeding
6,000 yen for the first time in six years.

Continued on;
http://www.jil.go.jp/english/archives/emm/2003/no.87/87_si.html