NIRA OPINION PAPER
No.70 | July 2023

Seeking to Realize Labor Mobility
without Unemployment- A Discussion between Government, Labor and Management Yuri Okina

Executive Vice President, NIRA / Chairperson, The Japan
Research Institute, Limited

Jiro Mizushima

Adjunct Senior Fellow, NIRA / Professor, Graduate School ofSocial Sciences, Chiba University

As Japan’s economy and society undergo major changes, there is a need for a systemthat enables workers to move beyond the boundaries of their companies and industries
into growth industries, finding employment based on their abilities and aspirations.
However, Japan has been slow to transform itself into a society that encompasses
dynamic employment frameworks suited to a global era. NIRA Forum 2023, “Theme 3:
Vision for a Society that encompasses Dynamic Employment Frameworks: Toward 'Labor
Mobility without Unemployment'“ brought together experts from government, labor, andmanagement in order to discuss this issue from multifaceted perspectives. The discussion
ranged across a variety of areas, including, in addition to employment policy, thedevelopment of social infrastructure, national land policy, and regional industrial policy.
The chief focus in the discussion was the realization of “labor mobility without
unemployment.” It will be necessary to take a proactive perspective with regard to labormobility, based on the viewpoint that the labor force should be able to move in the
direction of higher wages with education for reskilling. The hurdles to voluntary jobchange need to be lowered in order to realize an environment in which workers canactively choose the jobs they want. This awareness of the issue was shared by both the
management and the labor sides. On the other hand, the opinion was also expressed that“job-based employment” should be promoted while also carefully identifying growth areasand considering a variety of impacts. It will be important to develop a shared vision ofwhat needs to be done to realize a society that allows labor mobility for those who desire
it, a process involving not only industry, government, and academia, but also stakeholders
in local communities.

This is a translation of a paper originally published in Japanese in July, 2023.

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023

Participants in NIRA Forum 2023 “Theme 3: Vision for a Society thatencompasses Dynamic Employment Frameworks - Toward “Labor Mobility
without Unemployment”• Kumiko Bando
Councilor, NIRA / Governor, Japanese Red Cross Society• Atsushi Kagaya
HR Advisor, Asahi Group Holdings, Ltd.
• Takashi Kihara
Councilor, NIRA / Professor, Faculty of Economics, Dokkyo UniversityNaoto• Akiyoshi Koji
Vice Chair, Japan Business Federation (KEIDANREN) / Chairman of the Board,
Asahi Group Holdings, Ltd.
• Akihiko Matsuura
President, UA ZENSEN• Takatoshi Miura
Deputy Director-General, Secretariat of New Form of Capitalism Realization Headquarters,
Cabinet Secretariat• Jiro Mizushima
Adjunct Senior Fellow, NIRA / Professor, Chiba University• Sachio Muto
Director, Housing Economy and Legislation Division, Housing Bureau, Ministry of Land,
Infrastructure, Transport and Tourism• Junichi Okazaki
President, Industrial Employment Stabilization Center of Japan• Yuri Okina
Executive Vice President, NIRA / Chairperson, The Japan Research Institute, Limited• Tadashi Sakai
Professor, Faculty of Economics, Hosei University• Atsushi Sato
Professor, Faculty of Lifelong Learning and Career Studies, Hosei University• Shigenori Shiratsuka
Professor, Faculty of Economics, Keio University• Osamu Tanaka
Senior Research Fellow, Policy Research Institute, Ministry of Finance• Nobuyuki Yumi

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
Director, General Affairs Division, Employment Security Bureau, Ministry of Health, Laborand Welfare(In alphabetical order; titles and positions as of date of the Forum)

Japan's economy and society are undergoing a period of major transformation, involving,
among other things, the increasing sophistication of industrial structures, the advancementof digitalization, and changes in lifestyles. There is a growing need to create mechanismsthat enable workers to move beyond the boundaries of their companies and industries into
growth industries, and find employment based on their individual abilities and aspirations.
NIRA held NIRA Forum 2023, entitled “Theme 3: Vision for a Society that encompasses
Dynamic Employment Frameworks - Toward 'Labor Mobility without Unemployment',” inorder to discuss the establishment of mechanisms able to promote labor mobility in Japan.
Participants in the forum included experts in labor economics, business executives, a labor
union leader, government officials, and representatives of think tanks, forming a group thatencompassed industry, government and academia in addition to intermediary organizations.
The moderator for the day was Yuri Okina (Chairperson of the Japan Research Instituteand an Executive Vice President of NIRA ), and the issues for discussion were proposed by
Jiro Mizushima (a NIRA Adjunct Senior Fellow and Professor at Chiba University). This
paper summarizes the discussions held on the day, and concludes with an overview of the
future issues highlighted by the discussions (Note1).

Achieving Labor Mobility without Unemployment
Indicating that “labor mobility without unemployment,” bringing together labor mobility andlabor stability, is indispensable for realizing a society that encompasses dynamic employment
frameworks, Professor Mizushima raised the following issues at the beginning of the session:
The level of sophistication and informatization of the industrial structure is today progressing
rapidly, and the scope of activity in cutting-edge and growth sectors is expanding. Accompanying
this trend is a shortage of human resources, and demand is increasing for workers to hone theirskills and move into new sectors. However, it has been pointed out that Japan's low labormobility limits opportunities for workers to demonstrate their abilities and restricts innovation.
In order to change this situation, some argue that the country’s system of employment should
embrace mobility of employment, as is the case in Scandinavia and the Netherlands. However,Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
it is not sufficient to simply imitate examples from other countries. Rather, we need to discuss
how to envision a society that encompasses dynamic employment frameworks withconsideration of elements unique to Japan.
Looking at attitudes among workers, we find that a not insignificant percentage of workers inJapan are positive with regard to changing jobs. A NIRA survey shows that younger workers inparticular are more willing to change jobs. In addition, the need for the acquisition of new
knowledge and skills is not seen as a hurdle to changing jobs, and there is also evidence of awillingness to learn information technology-related knowledge, especially among young andmid-career workers. At the same time, the survey also showed that many workers desire stable
employment.
What these data reveal is that while workers are positive with regard to labor market mobility
in itself, they are uncomfortable with the idea of an unstable and insecure society in which
individuals are simply abandoned to look after themselves. In other words, there is a need toensure both labor market mobility and job stability.
The concept presented at this session of the Forum was therefore “labor mobility without
unemployment.” In order to structurally incorporate this concept into Japanese society, it willbe essential to discuss it from multifaceted perspectives, including reskilling, the secondary
safety net, and innovation.

Expert Opinions: Put in Place Effective Reskilling and Safety Nets
In response to these issues raised by Professor Mizushima, two experts offered keynote
addresses.
First, Professor Atsushi Sato of Hosei University gave the keynote address, “Issues in Japan
from an International Comparative Perspective: Labor Mobility, Vocational Ability, andRecurrent Education,” in which he pointed out the necessity for improvement of factors
hindering career autonomy for Japanese people in the areas of education, labor, and transition
between the two.
Professor Sato indicated that labor mobility can be divided into intra-enterprise mobility andinter-enterprise mobility. Intra-enterprise mobility refers to transfers and reassignments. This
type of labor mobility is very common in Japan. Inter-enterprise mobility can be classified into
two types. One of these is characterized by cooperation between government, labor, andCopyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
management; the three intervene to reemploy employees who will be laid off in new workplaces,
as is the case in Denmark and Sweden. An intermediary organization may also be set up to
carry out reskilling. The other type of inter-enterprise mobility is an employee voluntarily
leaving his or her job. Characterized by the use of private-sector job placement organizations
and training providers, this type of labor mobility is more common in countries such as the US
and the UK.
Based on international comparison, Japan can be characterized as a country in which it isdifficult for a worker to find further employment once unemployed. In Scandinavia, the UK and
US, it has been observed that the rate of labor mobility is higher in proportion to the level ofwages, labor productivity, and investment in skills. With regard to investment in skills, training
regimens can be divided into four categories, depending on the degree of government andcorporate involvement. These are：(1) the statist model, in which government involvement ishigh but corporate involvement is low; (2) the corporatist model, in which both government andcorporate involvement are high; (3) the liberal model, in which both government and corporate
involvement are low; and (4) the segmentalist model, in which government involvement is low
but corporate involvement is high (Table 1).
Table 1: International Comparison by Training Regimen(Note) Labor productivity is the value created per worker in US dollars (purchasing power parity equivalent).
(Source) NIRA , excerpted from materials prepared by Professor Sato

Japan can be categorized as regimen (4), i.e., a model in which a person holds a single career fora lifetime using skills acquired through training in a company. Further learning at universities
and other institutions is not the norm, and companies tend not to value skills learned in school,
resulting in a low level of career autonomy among the Japanese. Improving the intertwined
environment of new graduate hiring, intra-company transfers, late promotions, and theweakness of the link between work and education will be essential for the development ofrecurrent education.
Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
Next, Professor Tadashi Sakai of Hosei University gave a keynote address entitled “The Second
Safety Net: Expectations for the Job Seeker Support System,” in which he pointed out the needto strengthen support for job seeking by non-regular workers and others not covered by theemployment insurance system. Professor Sakai’s points are discussed below.
In recent years, the number of people who do not have employment insurance, or who do notmeet the conditions for receiving it, has been increasing. These people do not receive
unemployment benefits when they lose their jobs. The “second safety net” exists to help suchpeople. The “second safety net” is a “patchwork” of multiple systems that form a safety net to fillin the gaps in employment insurance (the first safety net) and public assistance (the third safetynet), depending on the needs of each individual (Figure 2). The idea of provision of benefits
without in all cases requiring contributions emerged in the wake of the global financial crisis in
2008, and has been further developed since then. One such program is the Job Seeker Support
System, which, in addition to job training, offers income security depending on the situation.
Figure 2: Relationship between each Safety Net(Source) NIRA , excerpted and edited from materials prepared by Professor Sakai

However, the number of users of the Job Seeker Support System has not increased as much as
expected, even during the COVID-19 pandemic. Why is this the case? While it is significant thatthe number of unemployed has been controlled by government policies, at the same time, theCopyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
use of other elements of the secondary safety net, such as the livelihood and welfare funds loansystem, has increased significantly, and this alone therefore does not explain the situation.
There may therefore be certain issues in the system itself.
After pointing this out, Professor Sakai additionally discussed the difficulties of job seeker
support policies.
The training courses that attract the most applicants do not necessarily achieve the highest
employment rate. Courses that offer high rates of employment due to chronic labor shortages,
such as courses in the medical and nursing care fields, are less popular. Therefore, simply
responding to individual needs will not achieve the desired labor mobility for the society andeconomy.
Next, Mr. Junichi Okazaki, President of the Industrial Employment Stabilization Center ofJapan, which has worked at realizing labor mobility without unemployment in recent years,
made the following remarks concerning the importance of creating a mechanism for worker-led
career advancement.
The most successful type of temporary transfer program conducted by the Center (transfers
conducted while employees remain with their companies) has been an “employment adjustment
type,” which has provided support to workers in industries such as the airline and travelindustries, in which employees experienced a significant temporary decline in work over the
pandemic period, by transferring them to other companies to provide employment rather thanthem being laid off. Recently, the number of transfers promoting “active involvement by senior
employees” has been increasing. This type of transfer sees employees in their late 50s who areapproaching the age limit for a position in one company being transferred to another company
on a trial basis; if the company and the transferred employee are mutually satisfied, the transfer
is made official.
The future focus of the Center will be on “future-oriented” temporary and permanent transfers.
While company-initiated transfers for purposes such as the acquisition of new technologies orentry to new fields have long been in place, the Center wishes to increase the number of workerinitiated transfers into the future. The Center seeks to ensure that temporary transfers anddual/secondary employment are utilized by workers in order to realize their desired careeradvancement or career change.
A question-and-answer session was next held to allow response to the two keynote addresses
and Mr. Okazaki's comments. First, with regard to reskilling within companies, Osamu Tanaka,
Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
a Senior Research Fellow in the Ministry of Finance’s Policy Research Institute, expressed theconcern that companies, having thoroughly inculcated workers in their organizational culture
through on-the-job training would then become unable to respond flexibly when faced with new
situations. To prevent this from happening, Mr. Tanaka indicated the necessity for workers to
be temporarily transferred to new companies when they are young, and to undergo fundamental
retraining in their late 40s and early 50s.With regard to government programs, Mr. Okazaki
also pointed out that while there are systems already in place that can be used for reskilling,such as the Training and Education Benefits system, few people are willing to use them. In
response, Professor Sato and Professor Takashi Kihara of Dokkyo University pointed out thatin order to increase the number of users of this system, it will be necessary for companies andsociety more generally to acknowledge the results of recurrent education. Professor Kihara also
argued that it would be appropriate to grant qualifications at the national level.

The Management Perspective: Supporting Worker-driven Career Development
Next, from the management side, Mr. Akiyoshi Koji, Vice Chair of the Japan Business
Federation (Nippon Keidanren) and Chairman of the Board of Asahi Group Holdings, Ltd.
presented the following views on the need for workers to engage in their own career development
and the necessary direction for Japan’s system of employment to help companies maintaininternational competitiveness.
First, worker mobility is a means, not an end. What is needed for the sustainable growth ofJapan's society and economy, and above all for the benefit of the lives of its people, is an increasein the labor participation rate of diverse human resources and the smooth movement of labor to
growth industries. Japanese society as a whole must become more positive with regard to labormobility.
One leading to the realization of smooth labor mobility will be worker-led career development.
Career development solely within the same company, through long-term or lifetime employment,
has adverse effects. Workers become less motivated to increase their employability and fail toacquire skills that would enable them to respond to changes in markets and the industrial
structure, with the result that they become undesirable in the market. To overcome this,companies and managers need to encourage workers to take side jobs or concurrent jobs. Other
priority measures might include the development and upgrading of skills, and the enhancementof job matching functions.

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
In addition, companies must work to break out of the current situation, which is seeing thesignificant decline in the international competitiveness of Japanese companies and industries.
In order to generate innovation and increase productivity, it will be essential to attract humanresources with diverse abilities, skills, and values. The diversification of hiring methods is to be
hoped for, including expansion of year-round recruitment, the hiring of experienced workers, thealumni recruitment of workers who have resigned (Note 2), and referral hiring (Note 3). Further,efforts should be made to establish in-house employment systems. In particular, it will benecessary to move toward a hybrid type of employment that incorporates the benefits of bothjob-based employment and membership-type employment (Note 4).

The Labor Union Perspective: Linking Growth of Productivity to Changes in the
Structure of Employment
Following this, Mr. Akihiko Matsuura, President of UA Zensen, made the following points
regarding “labor mobility without unemployment,” indicating that it would be desirable torealize labor mobility based on the voluntary decisions of individual workers.
The opinion of labor union representatives was that labor mobility is a necessary requirement,
but we must also protect the dignity of labor, increase opportunities and options, and provide
employment that allows workers to be secure in the conviction that they will be able to work
until retirement. As we become a society with a rapidly declining population, it will be necessary
to produce goods and services with less labor input. In doing so, productivity gains must be fullyreflected in wages, and fair prices for goods and services must be realized to enable investment
in further increases in productivity. The realization of a virtuous cycle between prices and wages
has long been a subject of discussion, but the primary concept in such discussions has been to
first increase productivity and then to raise wages based on this increased productivity. However,
we will not make progress if we insist on this order of procedure. We should give consideration
to a flow in which wages are raised first, following which companies are urged to increase theirproductivity.
Given the necessity for a dramatic increase in productivity, labor unions recognize the need forthe mechanization of work and labor mobility over the medium- to long-term. However, we must
be careful not to polarize the labor force in the face of structural changes that leave us unsure
as to what will remain as work to be performed by human workers. Securing employment is thefirst requirement, but it is not enough to simply have jobs; it will be necessary to protect the
dignity of labor in the jobs that workers perform.
Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
Japan’s proposed “green transformation” is changing the nation’s industrial structure, and has
forced us to take labor mobility into consideration. In response to the concept of “labor mobility
without unemployment,” labor unions take the stance that employment mobility realized
through the voluntary choice of individual workers is desirable. Surveys of students conductedby labor unions have shown that close to 80% wished to work until retirement. First, it will beessential to change workers’ thinking regarding changing jobs; in order to do so, it will be
important to make the process of changing jobs both secure and appealing. This would make itpossible to offer workers opportunities and options. In addition, we would like to emphasize thatthe labor union side does not believe that the transition to job-based compensation for workers
is an absolute necessity. It is also the case that job-based employment is still vaguely defined,
and we are concerned about whether it will actually lead to “labor mobility without
unemployment.”

Government Initiatives and Related Discussion(1) Challenges presented by the Transition to Job-based Employment
Next, representatives of the Cabinet Secretariat, the Ministry of Health, Labor and Welfare,and the Ministry of Land, Infrastructure, Transport and Tourism joined the discussion andoffered their views based on their individual perspectives and the status of current government
initiatives.
First, Mr. Takatoshi Miura, Secretariat of New Form of Capitalism Realization Headquarters,
Cabinet Secretariat, presented the following ideas in addition to the basic concept of realizing
structural increases in wages through reskilling, introducing job-based compensation, andfacilitating labor mobility.
The discussion regarding what will be necessary for the realization of structural increases inwages has only just begun at the Secretariat. Consideration will be given to job-based personnel
selection and job-based compensation, which are common overseas, in a form suited to the actual
conditions of individual companies, to help ensure that they function in Japan. When theparameters of a job are defined and the skills required for that job are outlined, we will realizea relearning process that sees workers studying to acquire the relevant skills of their own
volition. It will be important in this to think from the worker's perspective.

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
No. 70 | July 2023
In response, Mr. Okazaki pointed out that when discussing these issues, all parties involved
must be in agreement as to which occupational fields they have in mind and in which areas
labor mobility is necessary for the development of Japan's economy and society. With regard tothis, Professor Sato stated that in Japan, it is the middle management level that has not realized
employment mobility, and explained that it is characteristic of Japan that managers have an
extremely broad range of duties and important roles, making it difficult for them to change jobs.
Mr. Matsuura also expressed the concern that the phrase “job-based compensation” may be used
as an expedient means of lowering the wages of older workers.
(2) Obstacles to the Promotion of Side Jobs or Concurrent Jobs
Next, Mr. Nobuyuki Yumi, Director of the General Affairs Division of the Ministry of Health,Labour and Welfare’s Employment Security Bureau,, who oversees employment policy,
introduced the Ministry’s initiatives, including “visualization of the labor market.”
The Ministry’s “job card” is a tool that provides proof of information such as an individual’s
education history and work experience, and expectations are high on the management side forits efficacy. In addition, the dissemination of information such as salary levels, necessary
qualifications and experience, and company information for each occupation underconsideration is expected to contribute to voluntary reskilling and the encouragement ofworkers to seek to change their jobs. These measures will be promoted as important for thefacilitation of labor mobility toward jobs that offer higher wages.
With regard to the promotion of the voluntary mobility of workers, Mr. Miura stated that fromthe perspective of facilitating worker-driven career development and labor mobility, it isimportant for workers to experience different jobs while remaining in their main job, and forthis purpose, the working of side jobs or concurrent Jobs should be promoted; at the same time,
he also indicated that large Japanese companies may not allow their employees to take on
secondary jobs because they are worried about the loss of those employees, especially among
young workers. In response, Mr. Koji indicated that while large companies are introducing
systems enabling their employees to take on secondary employment, the complexity ofcalculating and managing working hours based on the obligation to take health considerations
into account represents a bottleneck. He expressed the opinion that it may be necessary, fromthis perspective, to consider making this the responsibility of the individual worker.
Mr. Okazaki pointed out that many companies are reluctant to allow their employees to take onside jobs or concurrent jobs for fear of losing human resources, but the focus should not be on

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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NIRA OPINION PAPER
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holding on to human resources but on whether it is possible to encourage the individual worker
to flourish. Professor Shigenori Shiratsuka of Keio University pointed out that it is importantfor companies to change their mindset, becoming companies that workers seek out and creating
attractive workplaces by increasing labor productivity.
(3) Innovation from the Regions
Finally, Mr. Sachio Muto, Director of the Housing Economics and Legislation Division of the
Ministry of Land, Infrastructure, Transport and Tourism’s Housing Bureau, indicated theimportance of innovation at the regional level, telling us that continuing growth is essential to
the realization of labor mobility without unemployment.
Based on Joseph Schumpeter's concept that innovation is a new combination of elements, what
is important in sites of innovation is spatial proximity enabling people to meet. Face-to-faceinteraction encourages creative activity, as exemplified by “innovation zones,” which bring
together research facilities and the physical necessities for human life within a restricted area.
What will be necessary will be to create zones that concentrate businesses and research
institutions, in addition to providing housing, offices, and retail outlets, within a radius of 400
meters.
In response, Ms. Kumiko Bando, Governor of the Japanese Red Cross Society, noted thatcurrently, rural areas do not provide sufficient opportunities for reskilling, and indicated theimportance of realizing labor mobility in a form that would encourage innovation in rural areas.
Ms. Bando also pointed out that given the ability to telework from rural areas and thediversification of work styles, including freelance work, measures should be considered thatwould make the most of individual abilities and bring those abilities into new areas. Professor
Mizushima also expressed concern that if young workers are bound to low-wage jobs in the
medical / nursing care field, an area in which needs are growing in rural areas, it might lead toan even greater outflow of population from Japan’s regions. He expressed hope for innovation inrural areas, taking into consideration how to utilize cutting-edge technology to improve thequality of labor and realize desirable care for the recipients of nursing care.

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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To conclude - A Vision for Employment
As Professor Sakai indicated, no matter which perspective we take, what we envision is a society
in which those who desire mobility in employment should be able to change their jobs. The
participants in this session of the Forum shared the view that rather than avoiding the questionof labor mobility, it will be necessary to view it positively, adopting the viewpoint that it ispossible for workers to move in the direction of higher wages as a result of reskilling. Workerled labor mobility is an important means towards realizing a form of employment in which
workers independently choose their jobs, potentially also leading to the realization of a societythat features a dynamic employment market.
It was impressive that both the management and labor union sides in this session of the Forumrecognized the need for labor mobility. The labor union representative indicated the importanceof increasing the employability of workers, in particular through the development of skills, givenchanges in the industrial structure. However, while the management side had high expectations
for job-based employment, including hybrid employment, the labor union side was cautious withregard to job-based employment, given uncertainty as to whether it would lead to labor mobility
without unemployment.
Based on the discussions held in this session of the Forum, the issues that need to be addressedin order to move workers into growth areas can be divided into three categories: first, efforts inthe area of reskilling and encouraging the transition to job-based employment, withconsideration of AI and other cutting-edge innovations; second, the creation of an environmentthat raises the level of human resources, promoting the proactive development of a wide rangeof workers in preparation for job transition, including also those who wish to change jobs; andthird, the establishment of a safety net for those in difficult circumstances, especially in thetransition to their next job. It will be important to address these issues simultaneously.
We must also remember that employment mobility is highly regional in nature. In addition toindustry, government, and academia, it will be important to include local stakeholders indeveloping a shared vision of what needs to be done to realize a society that enables labormobility for those who desire it.

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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Note
[1] NIRA Forum 2023 “Theme 3: Vision for a Society that encompasses Dynamic Employment
Frameworks: Toward 'Labor Mobility without Unemployment'“ was held on February 4, 2023 at
Akasaka Intercity Conference Center.
[2] A system in which former employees who have reached the age limit for their position are rehired.
[3] A method which sees employees introducing their friends and acquaintances for selection andhiring.
[4] “Job-based” employment refers to a form of employment in which employees can choose to workwith limited duties, work locations, and working hours. By contrast, “membership-based”
employment refers to the traditional Japanese employment system, characterized by en-masse
hiring of new graduates, long-term and lifetime employment, seniority-based wages, and in-housedevelopment of human resources.

Yuri Okina
Dr. Okina is an Executive Vice President of the Nippon Institute for Research
Advancement (NIRA) and Chairperson of the Japan Research Institute (JRI).
Her publications include “Financial Crisis and Prudential Policy (in Japanese).”Dr. Okina is a member of the Financial System Council and the Fiscal System
Council.

Jiro Mizushima
Professor Mizushima is a NIRA Adjunct Senior Fellow and a Professor in Chiba
University’s Graduate School of Social Sciences. He holds a Ph.D. in Law fromThe University of Tokyo. Professor Mizushima specializes in European political
history with a focus on the Netherlands, and European comparative politics.
His publications include Popyurizumu to wa nani ka (“What is Populism?”)(Chuko Shinsho, 2016; in Japanese).

Copyright Ⓒ 2023 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here. Translated by Michael Faul.

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