# Outline of the Analysis of the Labour Economy 2013 (White Paper on the Labour Economy 2013) ~ Employment, Human Resource and Ways of Working in the Midst of Structural Change ~

The employment structures in Japan have been changing in line with the growth of service economy. In order for Japan to promote sustainable growth and to expand employment and income in the midst of changes including slowed economic growth and globalization, it is necessary for both companies and workers to adjust themselves to the structural changes. In the White Paper, the analysis focuses on the strengthening of competitiveness through development of industries and securing and development of human resources who will contribute to growth, as well as on the necessity of establishing the ways of working which generate motivation and realize the potential ability of workers and revitalize companies.

### Chapter 1. Trends and features of the labour economy

## The analysis focuses on the recent employment situation and trends of wages and workers' household expenditures

The ratio of active job openings to active job applicants was 0.80, and the unemployment rate was 4.3% in 2012; the employment situation is thus showing movements of improvement recently, although it still remains severe (Figure 1).

• Looking at the total sum of cash earnings of full-time workers, we can see that the scheduled wages remains at the same level, and the special wages can be more variable (Figure 2). In the labour-management negotiations in the spring of 2013, some companies agreed on a bonus increase, as their business performance was improving.

The consumption expenditure of workers' households increased in 2012 for the first time in two years, partially thanks to the eco-car subsidy program. Consumer confidence has improved from January, 2013, as consumer expectations have become higher mainly in terms of the employment environment.

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

## The analysis focuses on economic growth, structural changes and trends of manufacturing industries

In line with the further expansion of the service economy, the employment structure also shows the trend toward the service economy. Tertiary industry increased its share in total employment.

Since 2001, the gap between the entry rate and the exit rate has been closing. It is necessary for the whole government to make efforts toward economic growth and to create employment, by increasing the entry rate through creation of new businesses in strategic fields, etc.

• Through exporting, the manufacturing industry is creating employment not only in the manufacturing industry but also in non-manufacturing industries, thus plays an important role in terms of the employment (Figure 5). In the future, it will be important to create value added through such means as entry into new industrial fields, and to secure competitiveness through development of human resources, etc. (Figure 6).

- The tasks for all the industries are to improve productivity of the service industry, etc., to create and maintain high value-added industries, and to change the industrial structure through labour mobility without unemployment.

### Chapter 3. Changes in acquisition and development of human resources in the labour market

## The analysis focuses on human resources sought by companies and actual conditions of non-regular employment

In order to assist employment of young people, companies should make further efforts to more clearly, define what kind of human resources they are seeking, and universities should endeavor to improve students' abilities and promote student internships. The government should promote strengthening of collaboration and information sharing among organizations of small and medium-sized enterprises, Hello Works, universities, and other entities.

During the period of 25 years from 1985 to 2010, while regular employment has not been decreasing, the ratio of non-regular employees increased, owing to the increase of non-regular employment in many industries, which resulted from the measures taken by the labour demand side in saving human cost and in dealing with business fluctuation (Figure 7). Most of the non-regular employees are fixed-term employees. The fixed-term employees account for 28% of all employees, and it is expected that more employees will move from fixed-term employment to permanent (or non-fixed term) employment.

From the companies' viewpoint of motivating employees and improving productivity through securing of human resources and increasing their stability, and from the workers' viewpoint of developing careers of non-regular employees and securing more stable employment, we need to facilitate "diversified ways of working" which will lead to the expansion of employment and income through growth.