## Figure 19: Employment creation effects through export from the manufacturing and non-manufacturing industries

Export from the manufacturing industry creates employment not only for the manufacturing industry itself but also for non-manufacturing industries through ripple effects.

Source: Prepared by the Office of Counselor for Labour Policy, MHLW, based on the "Year 1995-2000-2005 Input-Output Table" Statistics Bureau, Ministry of Internal Affairs and Communications and "Japan Industrial Productivity (JIP) Database 2012" The Research Institute of Economy, Trade and Industry

(Note) 1) When the number of employees is calculated as a product of the labour input coefficient matrix, Leontief inverse matrix and export vector, the number of employees by export from the manufacturing industry (non-manufacturing industry) is the value obtained when the export from the non-manufacturing industry (manufacturing industry) is set as 0 in the export vector.

2) Upon estimation of employment creation volume, the 102 categories table was used; the manufacturing industry ranges from "009: Foods" to "063: Other industrial products." Under the left figure, the manufacturing industry ranges from "8: Livestock products" to "59: Other manufacturing industrial products" of the Japan Industrial Productivity (JIP) Database 2012.

## Figure 20: Companies' views on future business investment

Among the companies which are currently operating overseas business or plan to operate overseas business in the future, the companies which place weight on domestic business investment accounted for the highest percentage, based on the reason that the advantages of domestic business development are increasing.

(Reasons why weights are placed on domestic business investment)

Source: “Survey on the Corporate Management and Human Resources in the Midst of Structural Changes” (February 2013) Japan Institute for Labour Policy and Training (Note) 1) Under the above two figures, the numbers represent the followings.

(Views on weights of business investment) 1: Weight is placed rather on domestic business investment; 2: Weight is placed rather on overseas business investment; 3: Weight is placed on both domestic and overseas business investments; 4: There is no plan to make business investment domestically or overseas; 5: Future policy for business investment not yet decided, or is unknown

(Reasons why weights are placed on domestic business investment) 1: There are concerns about returns from overseas investment (such as deterioration of security, and disruption of operation due to natural disaster or labour dispute); 2: Advantages in domestic business development are becoming smaller (such as increased human costs); 3: At the moment, the Yen is expected to be weakened; 4: The advantages of domestic business development are increasing (such as productivity and protection of confidential information and know-how); 5: In line with overseas development, it becomes more and more necessary to strengthen domestic development areas, etc.; 6: Others

2) No-answers are not represented, thus the grand total is not 100%.

3) The calculation was made only with the manufacturing industry.

## Figure 21: Companies' views on supply chains

The companies in the manufacturing industry are considering to enhance on the domestic scene, the upstream and downstream processes such as product planning, marketing, R&D and sales, and, on the overseas scene, the middle-stream processes such as production of parts and semi-products, processing, assembly and execution of work.

(From among the business processes implemented internally, the business processes which are considered to have a high degree of contribution to value-added (comparison with the status 3 years ago))

Source: "Questionnaire Survey on Actions toward New Industrial Structures" Mitsubishi Research Institute; conducted on October 2011 upon commission from Ministry of Economy, Trade and Industry (Note) 1. The figures of the manufacturing industry are excerpted from those of all industries.

2) The business process which corresponds to each number in the lateral axis is as follows. 1: Product planning and marketing; 2: R&D; 3: Production infrastructure and system development; 4: Production of raw materials; 5: Production of parts and semi-finished products; 6: Processing, assembly and execution of work; 7: Distribution; 8: Sales; 9: Providing of services; 10: Security services and after-the-sale services