## Section 2 ICT and Regional Employment

In this section, we explore the ways ICT can contribute

to job creation in rural areas and its potential to do so.

### 1. Employment impacts of ICT adoption

## (1) Job creation benefits of ICT

Differences are seen in the growth of existing businesses and creation of new businesses between the group of enterprises with higher than average ICT adoption and the group with lower than average ICT adoption. Figure 3-2-1-1 shows the percentage of offices with growing existing businesses divided by high or low ICT adoption. The percentage of offices in the group with higher than average ICT adoption that answered they had existing businesses exhibiting growth was 26.3 points higher. Similarly, in Figure 3-2-1-2, the percentage of offices in the group with higher than average ICT adoption that answered they are creating new businesses was 16.4 points higher.

In addition, offices in the group with higher than average ICT adoption with increasing numbers of regular full-time employees through either the growth of existing businesses or the creation of new businesses, was 14.6 points higher, among offices with growth in existing businesses (Figure 3-2-1-3), and 18.2 points higher, among offices creating new businesses (Figure 3-2-1-4).

These results demonstrate that ICT application fosters company growth and has job creation benefits.

Figure 3-2-1-1 ICT adoption and growth of existing businesses

Figure 3-2-1-2 ICT adoption and creation of new businesses

(Source) "Study Report on Regional Job Creation through ICT: Issues and Solutions," MIC (2015)

Figure 3-2-1-3 Change in regular full-time employee numbers through the growth of existing businesses

Figure 3-2-1-4 Change in regular full-time employee numbers through the creation of new businesses

(Source) "Study Report on Regional Job Creation through ICT: Issues and Solutions," MIC (2015)

### 2. ICT's regional job creation potential

Based on the analysis in the previous paragraph, we examine the potential that the use and application of ICT has in creating jobs in rural areas and revitalizing rural areas. The results from the survey given to offices of the business monitors were divided and tabulated by government-designated cities in the three metropolitan areas, government-designated cities outside the three metropolitan areas, and municipalities outside of government-designated cities. The percentage of offices in the group with higher than average ICT adoption was highest in government-designated cities in the three metropolitan areas, at 46.4 percent, followed by 41.0 percent in government-designated cities outside the three metropolitan areas and 34.1 percent in municipalities outside of government-designated cities. In other words, offices in municipalities outside of government-designated cities scored 12.3 points lower than offices in government-designated cities in the three metropolitan areas and 6.9 points lower than offices in government-designated cities outside the three metropolitan areas. Given the analysis results in the previous paragraph and the low level of ICT adoption in municipalities outside of government-designated cities, this suggests a weak effect on stimulating employment numbers through the growth of existing businesses and the creation of new businesses (Figure 3-2-2-1).

We assumed a case in which the development of the ICT provision industry and the use of crowdsourcing in