Although once considered the ideal employment relationship, the system of lifetime employment and seniority-based wages is slowly changing. The collapse of the economic bubble at the start of the 1990s has led to a prolonged recession and low growth. Just as Japanese business and industry is being forced to make many changes to stimulate a recovery through such measures as producing goods with value added, it is likely that greater efforts will be devoted to restructuring Japan's labor market. Some of these efforts are already occurring. While companies have generally made efforts to avoid employee layoffs, other measures, such as reduced hiring of new graduates, relocation, and restrictions on wage levels and employment conditions, have led to friction between management and workers.
Major corporations are also in the process of modifying the lifetime employment system.
Many companies are inclined to dismiss employees much earlier than age 60 or to employ skilled newcomers. Moreover, the present seniority wage system is being revised, and some companies have introduced annual salary conditions. In contrast with such changes in management, the way of thinking of the employees themselves, in particular of younger ones, is also changing. Increasingly, employees are showing reluctance towards the idea of loyalty to their company. It is not uncommon for people to change jobs when better or more suitable opportunities arise.