[Enhancement of Human Resource Development to Raise Motivation and Activate Skills]

Second, with increased focus being placed on skills and knowledge, labour policy should aim at introducing proper performance evaluation and providing the opportunity for human resource development, in order to raise workers' motivation and utilize their abilities fully. To achieve this goal, companies need to play an active role in implementing for human resource development programs, raising worker's motivation and fostering their abilities (in response to the particular requirements of the jobs to which they are assigned), and to establish an effective employment management system. Office communication, including labour relations, must also be facilitated. The efforts to develop vocational skills should be made on a continuous basis, with proactive support from highly motivated employees. Workers' initiatives to develop vocational skills are also important. The country must enhance the quality of the social infrastructure in order to raise workers' motivation and improve their skills, through providing more opportunities for self-development and establishing multifaceted education and training programs.

[Promotion of Comprehensive Labour Market Policy]

Third, with a declining population, a comprehensive labour market policy should be established to achieve sustainable economic development by improving workers' motivation and ability. In addition to preparing the labour market to accept more people, it is critical to provide willing people with proper opportunities for work and employment. An integrated approach must be followed to build a sophisticated industrial structure and create employment opportunities. It is important to foresee which field of industry is most likely to offer employment, and personnel development should be conducted from a long-term perspective. At the same time, the demand for labour, personnel development and employment support must be handled in an integrated and comprehensive manner. Sustainable economic development of the entire country means providing support for development across a broad range of regional communities. Thus it is important to enhance support to secure and develop human resources in individual regions.

## (Toward a New Employment System)

While the trend in the postwar Japanese economy was towards growth coupled with an increasing population, there were periods of severe recession that forced structural changes. The prevailing employment structures were also questioned.

The common goals in any discussion on the employment system has always been how to stimulate the vitality of corporations and industry, and how to raise the motivation of workers and take the best advantage of their skills so that they could also feel that an affluent society was being brought into being.

Japan will face large changes in both total population and population structure in a few years. The change means a fundamental shift in the postwar Japanese economy, and more people now argue that the employment system should be modified before these demographic changes occur. As the economic environment may change dramatically, some are of the view that even the employment systems, which were effective in the past, should be reformed from scratch.

Among these discussions surrounding employment systems, it is notable that all the concerned parties including the government, workers and employers have focused on the improvement of workers' motivation and active use of their abilities, but the importance of achieving this goal is even more pressing as the country is facing a declining population. Our predecessors have established Japan's employment system through their untiring efforts. Thus one should recognize that the current system still has many advantages that need to be passed on.