The Japan Labor Flash No.91
Email Journal September 3, 2007
Dear Readers
Termination of the Japan Labor Flash
[Statistical Reports]
Main Labor Economic Indicators
Current Topics
Sharp Increase in Number of New Recruits Who Want to Register for
Changing Jobs
Increasing Number of New Recruits in Favor of Not Working Abroad
Public Policies
2007 White Paper on Labour Economy Sees Gap-related Problems and
Improvement of Labor Distribution Rate as Main Tasks
2007 White Paper on Japanese Economy and Public Finance Analyzes
Corporate Behavior towards Increase in Productivity
News Clippings
Firms to "Secure" Students with Short-Term Internship Programs
Firms Retrain Newly Graduated Engineers
Special Issue
Even the Staff of Municipalities Are Infected
Dear Readers
-Termination of the Japan Labor Flash-
The Japan Labor Flash has provided information from various viewpoints
on the labor situation in Japan twice a month since the first issue was
published in October 2003 (its predecessor, the JIL Labor Flash was
first launched in August 2001). Regrettably, this e-mail magazine will
be discontinued following the final issue, No. 92, to be released on
September 18.
From time to time in the future, JILPT will provide information on
its research activities and other developments relating to the labor
situation in Japan. We hope that our readers will continue to give us
their valuable support.
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200709/index.htm
Current Topics
-Sharp Increase in Number of New Recruits Who Want to Register for
Changing Jobs-
Recruit Agent Co., Ltd., the leading job placement agency, announced
that the number of new recruits who registered to switch jobs between
April 1st and June 15th soared from 80 in the same period of the previous
year to 170 this year. The agency says that two years ago there were
only a few new recruits registering to switch jobs, and that more new
recruits than ever before are contacting other job placement agencies
to seek new jobs. While some point out that this phenomenon is attributable
to an increase in labor mismatches due to companies' mass employment
of new recruits, there is worry, in particular among those concerned
at colleges, about the dependability of today's young people.
-Increasing Number of New Recruits in Favor of Not Working Abroad-
The findings of a survey conducted in August by the SANNO Institute
of Management show that more than 30 percent of the new recruits surveyed
said that they would refuse to be stationed abroad, outnumbering those
who responded that they would readily accept the offer of an overseas
assignment. The survey also shows that the proportion of those who
would like to acquire a foreign language or languages (even at their
own expense) fell below 50 percent for the first time since the
Institute started similar surveys, indicating the introspective mind
-set of young people. The Institute began the survey in 2001 and
conducts it every three years. This year's survey was addressed to
750 new recruits of 265 firms which participated in training programs
for their new recruits between late March and mid-April. Effective
returns totaled 688 (of which male respondents total 427).
Public Policies
-2007 White Paper on Labour Economy Sees Gap-related Problems and
Improvement of Labor Distribution Rate as Main Tasks-
On August 3, the Ministry of Health, Labour and Welfare published
its 2007 White Paper on the Labour Economy, entitled "Work-life balance
and employment systems."
The annual paper explains that the effective job-opening-to-application
ratio for regular employees is 0.6, while the ratio for workers overall
has increased above 1, which indicates the current corporate preference
for minimizing costs via the employment of non-regular workers.
It also estimates that 0.8 percent out of the 1.0 percent drop in the
annual labor distribution rate between 2001 and 2005 - the rate has been
falling since it reached a peak of 74.3 percent in 1998 - was attributable
to an increase in non-regular employment. Its analysis states that the
traditional mechanism whereby economic growth and improvement in labor
productivity lead to an improvement in labor conditions has proved
ineffective since 2000. The fact is that wage increases and shortening
of work hours have been sluggish despite improved labor productivity.
The White Paper, while showing concern about problems arising from
the widening gap among different types of workers and calling for an
increase in the labor distribution rate, concludes that the distributing
way of outcome should be converted from the current uniform approach
to one whereby individuals can receive credit for achievement in accordance
with their own contributions. This would lead to the establishment of
an employment system whereby workers can choose and make use of various
systems which help them balance the claims of work and private life.
-2007 White Paper on Japanese Economy and Public Finance Analyzes
Corporate Behavior towards Increase in Productivity-
On August 7, the Cabinet Office published its annual report for
fiscal year 2007 on Japanese economy and public finance. With the
subtitle "Toward Higher Productivity Growth," the White Paper emphasizes
the necessity of improving labor productivity to secure the sustainable
economic growth by balancing the deepening of capital and the enhancement
of productivity in all fields. The White Paper, which classifies the
impact on households of structural changes in the labor market from
the perspective of diversification of employment patterns, analyzes
the impact of revisions to the employment system on the hiring and
wage negotiation processes of workers, and sheds light on the gaps
among workers and income redistribution policies.
While the White Paper on the Labour Economy highlights an increase
in the number of non-regular employees as the primary cause of a drop
in the overall wage level, this annual report provides an analysis of
the impact of a drop in full-time workers' salaries, concluding that
the drop in the overall wage level is attributable to various causes.
Annual Report on the Japanese Economy and Public Finance 2007
http://www5.cao.go.jp/keizai3/2007/0807wp-keizai/summary.html
News Clippings
-Firms to "Secure" Students with Short-Term Internship Programs-
Firms are now beginning to use their internship programs as early
opportunities to secure college students who are to graduate and enter
the labor market. Traditional internship programs last one to two weeks,
but nowadays firms launch one-day programs so as to contact as many
students as possible and thus get an edge over other companies in
conducting recruitment activities.
JCB Co., Ltd., a leading credit-card issuer, will increase the
capacity of its internship programs 1.6 times, to 1,000 students, by
combining its programs with companies in other industries (TOTO Ltd.,
UCC Ueshima Coffee Co., Ltd., etc.). The company also aims to widen
the range of students it recruits by reaching those whom it finds
difficult to attract with its own independent internship programs.
Mitsui Sumitomo Insurance Co., Ltd. expects to have 1,700 participants
in its program, in which students will learn about insurance mechanisms
while engaging in various interesting "games."
In the meantime, there is concern that, with programs of only one day,
the purpose of internship programs to develop knowledge of individual
occupations might be weakened. Students due to graduate in 2008 who
have applied for internship programs as of the end of July (via an
agent operating a job information website) sharply increased by 2.8
times from the same month of the previous year to 12,882.
(Nihon Keizai Shimbun, August)
-Firms Retrain Newly Graduated Engineers-
Mitsubishi Heavy Industries, Ltd., Canon Inc. and other leading
manufacturers have begun to adopt training programs for engineers who
have just graduated from college or graduate school. With the launch
of in-house lectures to teach the basics of engineering, they make it
obligatory for young engineers to attend the courses. Nippon Steel
Corp., JFE Steel Corp, and Nissan Motor Co., Ltd. also set up detailed
training schedules and conduct training programs.
According to the Ministry of Education, Culture, Sports, Science
and Technology, the number of applicants for admission to departments
of engineering at colleges this spring was approximately 268,000,
less than half the figure marked at the peak in the early 1990s when
the figure exceeded 600,000.
The drop in the birthrate and the shift away from science and
engineering faculties are said to have contributed to lower academic
standards among students. Accordingly, the number of young people
wishing to become engineers has been falling, making it more and more
difficult for firms to secure new graduates with adequate knowledge.
Firms sense that a crisis will follow the upcoming mass retirement
of the baby boom generation.
(Nihon Keizai Shimbun, August)
Special Issue
-Even the Staff of Municipalities Are Infected-
The Japan Labor Flash has already featured the increasing trend in
the number of workers at private firms suffering from depression and
other psychiatric problems, but has not referred to personnel in the
public sector at the prefectural and municipal levels.
In April this year, the Mental Health Research Institute of the
Japan Productivity Center for Socio-Economic Development conducted
a survey in this field for the first time, and came up with disturbing
findings. (The survey targeted 1,874 municipalities across the country;
effective returns 727; effective return rate 38.8 %).
Continued on;
http://www.jil.go.jp/english/archives/emm/2003/no.91/91_si.html
