The challenges facing our society, which is experiencing a reduction in population, a progressively larger proportion of elderly and declining birthrate, are to ensure stable economic growth and maintain the vitality of the economy with the participation of all employed people who will provide each other with mutual support. It is also important to motivate as many people as possible to work and to exercise their abilities. With a view to sustaining motivation and helping people to reach their full potential, it is essential to take steps to raise motivation and promote self-reliance among young people, respond to the wish of the elderly for ongoing work so long as they remain in good health, and to build the kind of society that meets the professional needs of female workers.

In terms of management strategies and personnel policies in the face of an approaching population decline and aging/declining birthrate, it is important to provide various options, options as possible, offer opportunities to develop skills, and implement appropriate performance reviews. Though, in the past, the proportion of non-regular employees has steadily increased, companies are expected to consider seriously how they can achieve the right balance between regular and non-regular employees in their workforce. At the same time, noting that an increase in the number of non-regular employees may risk producing polarization in terms of both vocational skills of workers and income level, further discussions on how to achieve this balance, and possibly also on the subject of re-classification of employees, need to be conducted.

The purpose of labour policy is to create "a society where everyone can work". Its mission is, first, to review working styles and promote a balance between work and private life. Second, it aims at facilitating human resource development to stimulate workers' motivation and help them to exercise their existing skills. Third, in line with an effort to promote comprehensive labour market policies, it is critical to create an employment system that promotes tolerance as this will enable a broad range of people to work in a multitude of ways.

## (Major Challenges Facing a Society with a Declining Population)

Though Japan is approaching the time when its population will start to decline, it is essential that it maintains sustainable economic and social development. Thus, increasing labour participation rate by motivating more people to work, and realizing labour productivity by drawing upon the abilities and potential of workers has become very important. To achieve the goal of creating an affluent "society where everyone can work" - by having everyone deepen their relationship with society through work and having them exercise their abilities - labour policy is expected to address following major issues.

[Review of Work Patterns and Balance between Work and Private Life]

First, traditional work patterns should be reconsidered, and professional and private lives be balanced, allowing everyone to participate in their community through work and support each other. More people, including women and the young, will be motivated to work provided harmony between their professional and private lives can be established through social support, thus enabling a balance between work and family. Providing the elderly with a wide range of opportunities for work and social participation encourages them to be in a position where they can support society themselves. It is important to address the social issues and to support workers by reconsidering the traditional approaches to work, and by creating an environment where everyone can work throughout their professional lives, with good balance between their professional and private lives, so that they can have longer and stronger contacts with the community in which they live.