## ☐ Trends of labour-management relationship

In the spring of 2013 when the employment situation is still severe, the labour-management negotiations included such topics as improvement of treatment of all workers. As a result of the wage negotiation, many companies maintained the wage curve, and some companies whose business performance was improving agreed to raise the bonus.

As for the organization of labour unions, the number of labour union members was 9,892,000 persons as of June 30, 2012, and the unionization ratio is estimated as 17.9%; the members has been decreasing since the peak in 1994, when the membership reached 12,699,000 persons. In this situation, the union membership of part-time workers increased to 837,000 persons, and the unionization ratio is estimated as 6.3%, showing the upward trend.

### 2. Change of Japanese economy and employment structure

## ○ Economic growth, growth factors and productivity

In Japan, the real GDP growth rate was at the mid 4% range in 1970s and 1980s, and was slowed down to about 1% in the 1990s; in 2000s, the rate was about 0.3%, showing a decrease of about 4%. The labour contribution to the growth rate was negative in and after the 1990s, reflecting reduction of working hours and a decreased number of employed workers; on the other hand, when we consider the man-hour increase and labour quality change separately, we can see that the improved labour quality supported the growth rate by 0.6% in 1980s and 0.5% in and after 1990s, keeping approximately the same level of positive contribution to the growth rate.

The slowdown of growth rate is mainly due to the decrease of capital amount and slowing TFP growth rate; in view of the future Japan whose population will keep decreasing, it is hoped that the labour quality will be further improved through development of human resources, etc. and will continue to support economic growth. Also, it is considered quite possible to achieve a positive growth rate by keeping up business investment and technological innovation.

## ☐ Transition of industrial and occupational structures

Looking at the long-term transition of employment composition by industry, the ratio of agriculture, forestry and fishery drastically decreased in the rapid economic growth period, and the ratio of manufacturing industry rose to 26.1% in 1970. After that, the ratio of agriculture, forestry and fishery, and that of the manufacturing industry decreased, and the employment structure changed to develop service industries, further advancing the tertiary industrialization.

Looking at the increase or decrease of workers in and after 2005 by medium industrial category, we can see that the number of workers increased in the industries of social insurance, social welfare, and nursing care, including welfare for the elderly people, and medical and other health services including hospitals; on the other hand, the number of workers drastically decreased in the construction industry which is considered to be affected by the reduction of public works, and the employment and worker dispatching services, agriculture, and wholesale trade.

In recent years, the composition ratio of public capital formation to GDP remains at the lowest level. Looking at the ratio of public capital formation to gross prefectural product by regional block in 2009, the ratio was high in Hokkaido, Hokuriku, and Kyusyu and Okinawa, and was low in the three major urban regions including South Kanto, Kinki and Tokai. We can see a positive correlation between the changing composition ratio of public capital formation and the regional increase rate of workers and the ratio of the number of workers in the construction industry to the number of workers in the region; the decrease of public capital formation had a more profound effect on the decrease of the number of workers in the regional blocks including Hokkaido, Tohoku and Shikoku, than the three major urban regions.

## ○ Employment creation and employment loss

In and after 2005, the effect of opening or closing business facilities on employment fluctuation was relatively greater in eating and drinking places, accommodations, scientific research, professional and technical services, and the information and communications industry; and the effect of continuing business facilities on employment increase and decrease was greater in manufacturing industry and construction industry.

In 2009 when the impact of financial crisis was grave, the net decrease rate of employment was largest in the other services, transportation and postal services and manufacturing industry, in which the effect of employment loss was strong in continuing business facilities. The decrease rate was alleviated in 2010; in the transportation and postal services, the employment loss in continuing business establishments was reduced and the effect of opening new business establishments became stronger than in 2009; in the manufacturing industry, the employment loss in continuing business establishments was reduced and employment creation was expanded, but the effect of opening new business establishments became weaker than in 2009.