Back to Work Back to Work.

199 Pages·2015·3.622 MB·English

by  OECD

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Back to Work:
Japan
IMPROVING THE RE-EMPLOYMENT PROSPECTS
OF DISPLACED WORKERS
ThisworkispublishedundertheresponsibilityoftheSecretary-Generalofthe
OECD.Theopinionsexpressedandargumentsemployedhereindonotnecessarily
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Pleasecitethispublicationas:
OECD(2015),BacktoWork:Japan:ImprovingtheRe-employmentProspectsofDisplacedWorkers,
BacktoWork,OECDPublishing.
http://dx.doi.org/10.1787/9789264227200-en
ISBN978-92-64-22719-4(print)
ISBN978-92-64-22720-0(PDF)
Series:BacktoWork
ISSN2306-3823(print)
ISSN2306-3831(online)
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FOREWORD – 3

Foreword
The OECD Employment, Labour and Social Affairs Committee (ELSAC)
has decided to carry out a thematic review of policies to help workers who
lose their jobs for economic reasons or as a result of structural change to move
back into work. This review builds on other recent research conducted by
ELSAC on topics such as youth unemployment, activation policy, skills and
the labour market impact of the Great Recession.
Nine countries will participate in the review: Australia, Canada, Denmark,
Finland, Japan, Korea, New Zealand, Sweden and the United States. Once the
country reviews are completed, a synthesis report will be prepared highlighting
the main issues and policy recommendations emerging from the review.
This report on Japan was prepared by Elena Crivellaro and Paul Swaim
with contributions from Gwenn Parent, Shruti Singh and Naoki Yamazaki.
Statistical assistance was provided by Sylvie Cimper and Agnès Puymoyen. It is
the second such country report prepared in the context of this thematic review
supervised by Mark Keese. The report benefited greatly from discussions with
officials, employer federations, trade unions, academics and businesses during
an OECD mission to Japan in September and October 2013, and from detailed
comments provided by the Ministry of Health, Labour and Welfare.
BACK TO WORK: JAPAN – IMPROVING THE RE-EMPLOYMENT PROSPECTS OF DISPLACED WORKERS © OECD 2015

TABLE OF CONTENTS – 5

Table of contents
Acronyms and abbreviations ....................................................................................... 9
Executive summary ..................................................................................................... 11
Assessment and recommendations ............................................................................ 13
Chapter 1. Job displacement in Japan and its consequences ................................ 21
Introduction ............................................................................................................... 22
The Japanese labour market context ......................................................................... 24
Displaced workers: Incidence and characteristics ..................................................... 30
Getting back into work .............................................................................................. 40
Changes in wages and job characteristics following displacement ............................. 46
Conclusions ............................................................................................................... 54
Notes ......................................................................................................................... 55
References ................................................................................................................. 59
Annex 1.A1. Additional figures .................................................................................... 63
Chapter 2. Japan’s measures to prevent job displacement and other forms
of early intervention .............................................................................. 67
Introduction ............................................................................................................... 68
Preventing job displacement ..................................................................................... 69
Employer measures to promote mobility without unemployment ............................ 82
Public early intervention measures to assist workers displaced during mass dismissals .... 95
Conclusions ............................................................................................................. 105
Notes ....................................................................................................................... 106
References ............................................................................................................... 113
Chapter 3. Income support for displaced workers in Japan .............................. 117
Introduction ............................................................................................................. 118
Overview of public income support benefits potentially available to displaced workers .. 118
How well does the EI System meet the income support needs of displaced workers? ... 129
Income support from firms ...................................................................................... 141
Conclusions ............................................................................................................. 150
Notes ....................................................................................................................... 152
References ............................................................................................................... 159
Annex 3.A1. Additional figure ................................................................................... 162
Annex 3.A2. Recent reforms to mandatory retirement and their potential implications
for the operation of voluntary early retirement plans ............................ 163
BACK TO WORK: JAPAN – IMPROVING THE RE-EMPLOYMENT PROSPECTS OF DISPLACED WORKERS © OECD 2015
6 – TABLE OF CONTENTS

Chapter 4. Helping Japanese displaced workers back into jobs ........................ 167
Introduction ............................................................................................................. 168
Key providers of re-employment and training services in Japan ............................ 168
Re-employment and training services ..................................................................... 174
Crisis measures for large numbers of displaced workers ........................................ 181
Conclusions ............................................................................................................. 190
Notes ....................................................................................................................... 190
References ............................................................................................................... 193
Annex 4.A1. Additional figure ................................................................................... 195

Boxes
Key policy recommendations .................................................................................... 19
Box 1.1. Defining job displacement in Japan ......................................................... 30
Box 1.2. Measuring job displacement in Japan ...................................................... 32
Box 2.1. Regulation of unfair dismissals: Ambiguous criteria may increase
the effective level of employment protection for permanent workers ..... 81
Box 2.2. Tempstaff Career Consulting case study ................................................. 92
Box 2.3. HQ Sharp in NARA Prefecture ............................................................. 104
Box 3.1. Lump-sum and pension benefits available to long-tenure displaced workers
from a model corporate retirement scheme ........................................... 143
Box 3.2. The 2012 voluntary early retirement plan at the Sharp Corporation .... 149
Box 4.1. Job Cafés ............................................................................................... 170
Box 4.2. The Polytechnic Center in Chiba – JEED.............................................. 178
Box 4.3. A success story – re-employment and training services in Nara Prefecture
for workers participating in the 2012 voluntary early retirement plan
at the Sharp Corporation........................................................................................182
Box 4.4. Tripartite consultations for the Realization of Employment Stability
and Job Creation .................................................................................... 184
Box 4.5. Employment Creation Fund .................................................................. 187

Figures
Figure 1.1. Employment and unemployment rates in Japan, the United States
and the OECD area, 1990-2013....................................................... 25
Figure 1.2. Employment by economic sector, 1993, 2003 and 2013 ................. 26
Figure 1.3. Regular and non-regular employees, 1985-2014 ............................. 27
Figure 1.4. Evolution of hires and separations, 1971-2012 ............................... 29
Figure 1.5. Displacement rates, Japan and selected OECD countries ............... 35
Figure 1.6. Variation in displacement rates by region, industry and occupation,
2000-08 ...................................................................................................... 37
Figure 1.7. Characteristics of displaced workers and other job separators, 2002-13 ... 38
BACK TO WORK: JAPAN – IMPROVING THE RE-EMPLOYMENT PROSPECTS OF DISPLACED WORKERS © OECD 2015
TABLE OF CONTENTS – 7

Figure 1.8. Marginal effect of selected characteristics on the likelihood
of displacement................................................................................ 39
Figure 1.9. Re-employment rates of displaced workers and other job separators.... 41
Figure 1.10. Marginal impact of selected characteristics on the likelihood
of being re-employed following displacement ................................ 43
Figure 1.11. Main activity of workers one year after displacement
or other job separations, 2002-13 .................................................... 46
Figure 1.12. Wage changes, 2004-12 .................................................................. 48
Figure 1.13. Wage penalty of displacement, 1971-2013 ..................................... 50
Figure 1.14. Employment status of re-employed displaced workers
and other job separators, 2002-13 ................................................... 51
Figure 1.15. Change in industry or occupation after displacement
and other job separations, 2002-13 .................................................. 52
Figure 1.A1.1. Characteristics of displaced workers and other job separators
according to the Employment Status Survey, 2007 ......................... 63
Figure 1.A1.2. Incidence of displacement and other types of separations
according to the Employment Status Survey, 2002, 2007 and 2012 .... 64
Figure 1.A1.3. Marginal effect of selected characteristics on the likelihood
of being displaced, 2002-13 ............................................................ 65
Figure 1.A1.4. Marginal impact of selected characteristics on the likelihood of
being re-employed following displacement, 2002-13 ..................... 66
Figure 2.1. Employment protection of permanent workers in OECD countries,
2013 ................................................................................................. 76
Figure 2.2. Regulation on temporary contracts in OECD countries, 2013 ........ 78
Figure 2.3. Simple correlations between EPL for permanent workers,
labour market dynamics and the incidence of long-term
unemployment, OECD countries ..................................................... 79
Figure 2.4. Number of firms submitting notification of large fluctuations
in employment and Plans for Assisting Re-employment
to Public Employment Security offices, FY 2003 to FY 2012 ............ 101
Figure 3.1. Simplified overview of the Employment Insurance System ......... 119
Figure 3.2. Upward trend in the number of public assistance recipients
since the global financial crisis ...................................................... 127
Figure 3.3. Maximum duration of unemployment benefits in OECD countries,
2012 .......................................................................................................... 130
Figure 3.4. Net replacement rates of unemployment benefits, OECD countries,
2012 .......................................................................................................... 132
Figure 3.5. Ratio of the number of unemployment benefit recipients to the number
of unemployed persons, Japan compared with six other countries....... 133
Figure 3.6. Post-crisis change in the number of unemployment benefit recipients
as a percentage of the change in the number of unemployed,
OECD countries .............................................................................. 134
Figure 3.7 EI inflows for specific qualified recipients have tracked changes
in the displacement and unemployment rates quite closely, 2002-12 ... 138
BACK TO WORK: JAPAN – IMPROVING THE RE-EMPLOYMENT PROSPECTS OF DISPLACED WORKERS © OECD 2015
8 – TABLE OF CONTENTS

Figure 3.8. Demographic profiles of displaced workers
and new EI recipients, 2012 .......................................................... 139
Figure 3.A1.1. Shares of EI inflows, recipient stocks and total payments
across different benefit types, FY 2012 ......................................... 162
Figure 4.1. Methods used by employers for recruiting full-time
mid-career employees, by industry, 2007 ...................................... 172
Figure 4.2. Recruitment channels used by newly-hired employees, 2012 ....... 173
Figure 4.3. Expenditure on active labour market programmes,
OECD countries, 2012 .................................................................. 175
Figure 4.4. Active labour market policies: Expenditure on training,
OECD countries, 2012 .................................................................. 177
Figure 4.5. Labour market spending during the crisis and recovery, Japan ..... 186
Figure 4.A1.1. Primary method used by displaced workers and other unemployed
to look for a job according to the Japan Labour Force Survey,
averages 2002-13 ............................................................................ 195

Tables
Table 1.1. Main activity status one year after displacement
or other job separations, by characteristics, 2002-13 ............................ 44
Table 2.1. Number of firms and workers participating in EAS and public spending .... 73
Table 2.2. Inter-company transfers from the perspective of the sending company,
1997 .................................................................................................................. 83
Table 2.3. IESC success rate in arranging transfers, 2008-13 ............................... 85
Table 2.4. Comparison of job-brokering services provided by the IESC
and Hello Work, FY 2012 ..................................................................... 87
Table 3.1. Maximum duration of EI Basic Allowance payments in days ............ 123
Table 3.2. Recipiency patterns for the Housing Support Benefit, 2009-12 ......... 128
Table 3.3. EI coverage rates for job separations between October 2011
and March 2012, by reason for leaving firm ....................................... 136
Table 3.4. Gender and age composition of different beneficiary groups, FY 2012..... 140
Table 3.5. Typical severance payments by tenure and reason for separation, 2011 .... 144
Table 3.6. Share of companies with severance pay that make use
of different types of early retirement plans, 2011 ............................... 146
Table 3.7. Average percentage increases in lump-sum severance payments
in voluntary early retirement plans, 2011 ........................................... 148
Table 4.1. State and prefectural training, 2012 .................................................... 179
Table 4.2. Vocational training for jobseekers after the economic crisis .............. 181

BACK TO WORK: JAPAN – IMPROVING THE RE-EMPLOYMENT PROSPECTS OF DISPLACED WORKERS © OECD 2015