### Chapter 3 Career development through occupational life Section 1. Current situation concerning occupational careers in Japan

Looking at the current situation concerning occupational careers in Japan, many males have worked in a single workplace for a long period (long-term employment career) and there is not a big change in this situation for different generations. If employees continue to work in a single company, they are relocated every few years and many of them develop an occupational career where they are able to develop expertise while having a broad range of experiences. On the other hand, quite a few people have an occupational career where they change their job several times. Some people with high income change their job proactively.

It is necessary to revitalize the external labour market in order to secure human capital needed in growing industries and maximize the ability of human resources. To realize this, the nominal wage in growing industries should increase so that more and more voluntary labour transfers are carried out by workers. It is also important to strengthen the labour market in a strategic manner, such as the improvement of public support including public vocational training for workers who are forced to leave their job involuntarily, creation of an environment where workers' occupational abilities are fully evaluated at the time of job transfer such as providing transparency to their occupational abilities. Besides this, workers themselves need to put more effort on self-development in order to improve their abilities.

## (Half the number of male workers continues to be employed in their first company until they are mid-50s)

We will look at the situation of separation and transfer from the first job by age using Figure 50 in order to obtain an overview of individual occupational life. The figure indicates that half the number of males aged between their 30s and mid-50s continue to work without leaving the first job. The ratio of workers younger than their mid-50s who are working in the second company they have worked for has been stable at 15%. If this distribution is constant, then more than 60% of males change their job only once at most before they become around 60. Moreover, this means that half the number of males have worked in a single company without leaving once until they become around 60. In other words, the occupational career of males in Japan is often considered to be a long-term employment career in which they work in a single workplace for a long period.

On the other hand, about 25% of female workers aged between their 30s and mid-50s continue to work without leaving the first job and slightly more than 30% of female workers are working in the second company they have worked.

## (The continuous employment rate by age group is increasing in recent years)

Figure 51 shows the continuous employment rate by age group in regular workers after their mid-20s. The rate has been gradually declining for both males and females, and bottomed out in those who were born between October 1967 and September 1972. The rate increases in those who were born after the generation, and in particular, the continuous employment rate of females (until early 30s) who were born between October 1977 and September 1982 exceeds that of the generation born between October 1952 and September 1957.

In light of the situation in cohort, the situation where about half the number of males (at least regular workers) continue to work in a single company without leaving their first job or relocating almost until their retirement hasn't changed much for different generations.

## (About half the number of employees in a managerial position has experienced working in more than four departments after the first employment)

Figure 52 shows the number of relocations (including job transfer and temporary transfer, hereinafter referred to the same) and types of job type that employees who are currently in a managerial position (positions correspond to section chief or department manager) have experienced. According to the figure, the largest number of employees has relocated 1 to 3 times, and half the number has relocated more than 4 times.