Comprehensive Employment Measures

- Toward the stabilization of employment and creation of new industries -

(Decision by the Headquarters for Industrial Structural Reform and Employment Measures on September 20, 2001)

In order for Japan to construct a base for future development, to realize the potential growth of the economy and to truly rehabilitate the economy, it is essential to promote structural reform without sanctuaries.

The Japanese economy, especially in the employment situation, is becoming increasingly severe, with the unemployment rate in July rising to 5.0%. We cannot rule out the possibility of the employment situation deteriorating even further with progress in the disposal of non-performing loans. It is in these times that we have to construct a base for new growth, while limiting damage to a minimum.

To this end, it is necessary to implement measures to cope with the following three issues in a comprehensive manner.

First, in order to "create employment," it is necessary to foster new markets and industries by carrying out drastic regulatory/institutional reforms. Second, in order to "dissolve employment mismatches," it is necessary to actively promote job-placement services and human resources development through public-private cooperation and be able to place the right man in the right job, so that labor mobility will be facilitated. Third, by "establishing a safety net," it is necessary to make people live with peace of mind and give them strong motivation.

From these standpoints, the Headquarters for Industrial Structural Reform and Employment Measures has worked out "Comprehensive Employment Measures," a comprehensive package of emergency and focused measures.

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I. Creation of Employment

- Job creation by fostering new markets and industries -

1. Creation of new markets

Such fields as medical welfare and environment hold the key to the creation of new markets in Japan. The government will strive to construct a competitive, efficient medical welfare system and an economic society that is symbiotic with the environment, expand the market in these fields, and provide high-quality services in order to meet people's needs.

1. Childcare: Promotion of measures to reduce to zero the number of children on the waiting list for admission to nursery school (To be described in II.6)
   
   
   • In order to increase the admission of children to nursery schools and other facilities by a total of 150,000 (50,000 within fiscal 2002 and another 100,000 by fiscal 2004), the establishment of necessary facilities will be promoted immediately by increasing the number of facilities set up by the public sector and run by the private sector through the use of PFI and other means. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
     
     
   • Measures will be implemented to promote childcare at places near stations, to provide childcare services utilizing vacant schoolrooms and stores, to authorize hitherto unauthorized day-care centers, and promote day nursery at kindergartens. (Requesting budget in fiscal 2002)
     
     
   • Extended childcare and holiday childcare will be actively promoted. (Requesting budget in fiscal 2002)
     
     
   • Provision of childcare services by companies and other private sectors will be promoted by promoting the establishment of branch nursery schools, flexibly applying the accounting that concerns nursery schools, reviewing the establishment standards for nursery schools, and making the deregulation measures implemented so far thoroughly known to the public, all by the end of fiscal 2001. Also, flexible utilization of certified nurses will be facilitated.
     
     
   • In order to increase the number of after-school facilities mainly in big cities and surrounding areas to 15,000 by fiscal 2004 (800 after-school children clubs in fiscal 2002), there will be an immediate establishment of the necessary facilities for after-school children clubs. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
     
     
2. Long-term care: Improvement of the system to provide long-term care services
   
   
   • Operation of assisted-living houses by private companies will be permitted and facilities that are set up by the public sector and run by the private sector through the use of PFI will be increased. (System review in fiscal 2001. Requesting budget in fiscal 2002)
     
     
3. Health care: Reform of medical systems and creation of medical market
   
   
   • Promotion of the use of IT in the medical field, such as making electronic patient record . (Requesting budget in fiscal 2002)
     
     
   • In order to promote the submitting of bills electronically, preparations will be made sequentially starting in fiscal 2001. (Implementation began sequentially in fiscal 2001)
     
     
   • A study will be conducted and a conclusion should be reached by the end of fiscal 2001 with regard to direct examination of bills by insurers and the consignment of examination to the private sector. (Conclusion to be reached by the end of fiscal 2001)
     
     
   • Starting in fiscal 2002, the combination of treatment covered by the insurance and not covered by the insurance will be expanded in order to offer a wider choice of medical treatment to patients. (To be implemented starting in fiscal 2002)
     
     
   • A study will begin in fiscal 2001 with regard to reviewing the management mode of medical institutions. (Study begin in fiscal 2001)
     
     
4. Environment: Formation of a Recycling-Oriented Society and expansion of industries related to energy saving and new energy
   
   
   • Rules to form a Recycling-Oriented Society will be established immediately, including a study to review the definition of waste (to be completed by the end of fiscal 2002) and the enactment of an automobile recycle law (to be submitted to the next ordinary session of the Diet), in order to create new industries and expand related services.
     
     
   • Renewable energy and energy-saving markets will be created and their services will be expanded by developing fuel cells and expanding targets for equipment based on top-runner system. (Requesting budget in fiscal 2002)

2. Program to Double Foundation and Opening of Businesses

In order to double the number of businesses to be created and opened in five years (at present, 180,000 companies are established every year) and make them the source of market creation, the government will promote the establishment of financial and human resources environments and strongly support the management innovation of smaller enterprises. Industry cluster programs designed to revitalize regional economies will also be promoted in order to create industry clusters for the continual development of new businesses viable in the world.

1. Establishment of environment to promote business start-ups and opening and management innovation
   
   
   • With regard to stock options systems, the number of persons covered by the Commercial Code will be expanded and the matters to be decided will be simplified. (A bill to revise the Commercial Code is to be submitted to the extraordinary session of the Diet.)
     Study will also be made with regard to organizing disclosure-related regulations based on the review of the stock options system in the Commercial Code, with due consideration given to facilitating enterprises' securing of human resources. (By the end of fiscal 2001)
     
     
   • Support of financing and human resources development concerning business start-ups and innovation of SMEs will be promoted and enhanced. (To be described in III.6)
     
     
   • Support for business start-ups and innovation of SMEs based on technology and IT will be expanded. (Requesting budget in fiscal 2002)
     
     
   • Support for smaller enterprises' fund procurement through the issuance of private placement bonds will be promoted. (Measures to be taken by the end of fiscal 2001)
     
     
   • With regard to government research and development budgets, small business innovation research (SBIR) which has a target amount to be expanded for SMEs will be expanded. (Requesting budget in fiscal 2002)
   
   
   
2. Promotion of industry cluster program for revitalization of regional economies
   
   
   • Under the "Industry Cluster Program for the Revitalization of Regional Economies," a wide-area personnel network of industries, academia and the government will be formed and measures, such as the development of practical technology through industry-academic-government cooperation, will be effectively implemented in order to support regional economies and form industry clusters for the continual development of new businesses viable in the world. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)

3. Creation of New Businesses Through Technological Innovation

(Promotion of Innovation)

Competitive forces will be introduced to universities in order to create world-class universities and their bases will be reinforced. Creation of venture firms originating from universities will be promoted (1,000 venture firms in three years) by enhancing the proximity between universities with basic research capabilities and a group of venture firms; and the development of regional science and technology will be promoted by making use of regional characteristics.

• The government will promote the development of venture firms originating from universities and nurturing entrepreneurs and provide support to industry-academic-government joint research designed to create new industries. (Requesting budget in fiscal 2002)
  
  
• With regard to reviewing the approval system for the creation and abolition of study courses at universities, a conclusion will be reached by the end of fiscal 2001 and a new system will be implemented starting in fiscal 2002. (Conclusion to be reached by the end of fiscal 2001 and a new system will be implemented starting in fiscal 2002) With regard to flexible application of the approval system for the creation and abolition of university faculties, a study will be conducted by the end of fiscal 2001. (Study will be conducted by the end of fiscal 2001)
  
  
• With regard to the use of the facilities of state-run universities by venture firms originating from universities and with regard to the instructors of state-run universities serving as non-executives of private companies, a study will be conducted on deregulation, including clarification of the criteria, and a conclusion will be reached by the end of fiscal 2001. (Conclusion by the end of fiscal 2001) As to the proposed abolition of the maximum amount of compensation for state-owned patents, a conclusion will be reached by the end of fiscal 2001 and a new rule will be implemented in fiscal 2002. (Conclusion by the end of fiscal 2001 and implementation in fiscal 2002)
  
  
• Focused investment will be made in the "top 30" state-run, local government-run and private universities in order to establish world-class universities. (Requesting budget in fiscal 2002)
  
  
• Patent Law, Trademark Law, and Patent Attorney Law will be revised. (Proposed amendments to be submitted to the next ordinary session of the Diet.)

4. Reinforcement of industrial competitiveness

n order to strengthen the industrial competitiveness that will form the cornerstone of Japan's future growth, focused investment will be made in life science and three other fields and support will be provided to private-sector research and development. Also, a system to enhance the flexibility of business management, facilitate business activities, and revitalize commerce will be established in order to support challenging firms.

• Focused investment will be made in the four fields of life science, information and technology, environment, and nanotechnology and materials. (Requesting budget in fiscal 2002)
  
  
• In order to increase the range of research options and flexibility and to promote competitive research and development, competitive funds for research and development will be expanded. (Requesting budget in fiscal 2002)
  
  
• A study will be conducted on the introduction of a consolidated tax payment system.
  
  
• The Commercial Code will be revised drastically with regard to company's organization, stocks, disclosure, etc. (Amendments to the Commercial Code are to be submitted to the next ordinary session of the Diet.)
  
  
• The Corporate Reorganization Law will be revised in order to facilitate a prompt, smooth rehabilitation of business. (Measures to be taken by the end of fiscal 2002)
  
  
• Major international harbors will be made open 24 hours a day. (To be implemented sequentially)
  
  
• Commercial activities at city centers shall be revitalized. (Requesting budget in fiscal 2002)

New markets and employment will be created in such growth fields as IT, distribution, and cities by steadily carrying out regulatory reforms.

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II. Dissolution of Employment Mismatches

- Reinforcement of public-private cooperation, human resources development, improvement of employment environment -

1. Reinforcement of cooperation to dissolve mismatch

In order to dissolve employment mismatches, information on job offers both in the private and public sectors will be provided and early re-employment will be promoted by combining job-placement services with vocational training

• 'Shigoto-joho-net'(The Job Information Net) which provides information on job offers from the private and public sectors through the Internet was inaugurated on August 8th of this year. It offers job information provided by about 2,800 private job placement firms, etc. and the public-run public employment security offices. The service will be further expanded by promoting participation of more private job placement firms, etc., extending the Hello Work Internet Service across the country and diversifying the means of access. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• The government intends to promote re-employment in cooperation with private job placement firms, reinforce the information provision and counseling functions of public employment security office, and extend the service hours. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• An integrated support system will be established ranging from job hunting, such as providing real-time information on training courses provided by public job placement offices, to counseling, vocational training, job-placement services, to employment. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• As to the Regional Industry and Employment Promotion Program which was created on August 28th of this year, it will be implemented sequentially in cooperation with regional labor relations bureaus and the Ministry of Economy, Trade and Industry. (To be implemented sequentially) (To be described in III 1.)

2. Establishment of a system to promote spontaneous human resources development by individuals

In order to dissolve the mismatch of recruiters' job requirements and job-seekers' abilities, the government will develop workers with flexible, and high-level skills and abilities by supporting them with opportunities to develop their capabilities spontaneously initiatives, in addition to human resources development provided by corporations.

• Career counselors will be stationed at the Career Formation Support Corners (in each prefecture) and public employment security offices ,etc. and about 50,000 career counselors will be trained, mainly out-of-work, middle-aged white-collar workers, in order to reinforce the career counseling functions of both the private and public sectors and to create new jobs. (Request for supplementary budget now under consideration)
  
  
• Effective utilization of advanced education and training courses at undergraduate and graduate schools will be promoted through emphasized and flexible utilization of the education and training benefit system. (To be implemented by the end of September)

3. Ensuring and creating diversified opportunities for human resources development by making use of private-sector vitality

Along with vocational training at public institutions, training at private education and training institutions on a consignment basis will be fully utilized in order to secure and create diversified opportunities for human resources development.

• Effective human resources development will be promoted, mainly for out-of-work, middle-aged white-collar workers, by making the best use of various education and training resources, including private vocational training institutions, universities, graduate schools, corporations, and NPOs. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Human resources development to deal with IT will be expanded for those out of work. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Flexible management of public vocational institutes will be expanded. (Such as holding lectures at night and on Saturdays and Sundays) (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Human resources development and advice on human resources will be provided in order to support business start-ups and the development of new fields. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Internships will be further promoted. Trial employment of young people, such as new graduates, will be enhanced in order to provide practical skills. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)

4. Advanced personnel training utilizing undergraduate and graduate schools

By utilizing undergraduate and graduate schools, advanced personnel training will be provided.

• The "one million workers' career improvement project" will be implemented over the next five years by promoting the establishment of specialized graduate schools, such as business school, and drastically expanding workers' career improvement education at undergraduate and graduate schools and vocational schools. (Requesting budget in fiscal 2002)
  
  
• In the light of the worsening employment situation, scholarships will be expanded for those having a will and capability to study. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• In order to foster promising young scientists, the "I love science and technology plan" will be promoted by utilizing university instructors, facilities and the latest research results. (Requesting budget in fiscal 2002)

5. Promotion of employment of the elderly

Employment of the elderly will be promoted by dissolving employment mismatches due to age.

• With the provision mandating employers to ease age restrictions in job placement and recruitment based on the Revised Law on Employment Measures scheduled to go into effect on October 1, 2001, efforts will be made to make the provision widely known by fully utilizing public and private job-placement institutions and mass media, in addition to calling on public institutions and major corporations to observe the provision. (To be implemented on October 1. Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Support will be provided to older persons establishing joint businesses and creating employment continuously. (Requesting budget in fiscal 2002)
  
  
• Employment of persons with disabilities will be promoted through human support by job coaches. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)

6. Establishment of economic and social foundations that enable women to keep working

Social environments that allow women to bear and rear children with peace of mind will be established, including strengthening child-care support functions.

• In order to reinforce the child-care support functions of communities, family support centers for mutual assistance in child care will be established for workers and housewives who have small children. (Requesting budget in fiscal 2002)
  
  
• Promotion of measures to reduce to zero the number of children on the waiting list for admission to a nursery school (Repeat of I 1.1)

7. Establishment of environments that respond to diversified modes of employment

Work environments will be established that permit diversified ways of working.

• With regard to definite contracts and free working hours systems, the official notice that sets the contract period of specialized jobs at three years at most as special cases will be revised by the end of this fiscal year in order to expand the scope of such jobs and a study to review the whole system will be initiated without delay. (Related advisory councils began studying the matter on September 19.)

8. Review of the worker dispatching system

In response to severe employment situations and as part of the establishment of the foundation of the labor market, the worker dispatching system will be reviewed

• With regard to the middle-aged and older people who find it difficult to be re-employed, an emergency employment measure bill will be submitted to the extraordinary session of the Diet in order to extend the period of worker dispatching to three years from the present one year. (The bill is to be submitted to the extraordinary session of the Diet)
  
  
• Application of worker dispatching with prearrangement to carry on employment placement to the client will be reviewed and periods of worker dispatching will be shorted upon agreement among the employer of dispatching undertaking , the client and dispatched worker in order to make it easy for the dispatched worker to be directly employed by the client earlier. (The review will be implemented immediately)
  
  
• For the review of the scope of jobs (26 jobs) for which the period of worker dispatching is allowed for up to three years, a conclusion will be reached by the end of fiscal 2001. (Conclusion by the end of fiscal 2001)
  
  
• For the review of the worker dispatching system as a whole, related deliberative councils began studying the matter on August 31. Conclusions will be reached as to the extension of the period of worker dispatching, abolition of the ban on dispatching workers to engage in "production of goods," and the review of the worker dispatching with prearrangement to carry on employment placement to the client after study results are made available. (The study began on August 31)

9. Review of job-placement system

As part of the establishment of the foundation of the labor market, the job-placement system will be reviewed and a smooth labor movement to the fields that create new jobs will be promoted.

• Related deliberative council began reviewing the job-placement business system on August 31 with regard to such issues as the shift from the approval system to the registration system concerning the free-changing employment placement project and easing requirements concerning responsible persons acting for employment placement. Conclusions will be reached based on the study results. (The study began on August 31)
  
  
• As to the expansion of the scope of jobs for which commissions can be collected from job seekers and the review of the upper limit on commissions charged by recruiting companies, conclusions will be reached by the end of fiscal 2001. (Conclusion to be reached by the end of fiscal 2001)

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III. Establishment of a Safety Net

1. Creation of jobs that meet regional needs

In order to promote the creation of jobs that meet regional needs, the subsidy system that will be reviewed in line with the enactment of the Revised Employment Measure Law will be employed effectively and the “emergency regional employment special grant” that expires this fiscal year will be reviewed.

• The current "emergency regional employment special grant" will focus on businesses with strong job-creation effects and a new emergency regional employment special grant will be established in order to promote the creation of emergency, temporary jobs (new public service employment) in the public sector (including the utilization of private companies and NPOs), such as instructor assistants at schools, police supporters, and forest workers for the preservation of the environment. (Request for supplementary budget now under consideration)
  
  
• Support measures will be implemented for business operators who employ job seekers and engage in human resources development in the areas set up by prefectural governments for the expansion of employment opportunities, and employment development that meets the actual needs of each area will be promoted. (Implementation on October 1)
  
  
• In order to create jobs that meet the actual needs of each area and to create jobs in the service fields, such efforts as employment support activities that utilize organizations for business operators and human resources development in cooperation with related industries and institutions will be promoted. (Implementation on October 1. Requesting budget in fiscal 2002)
  
  
• The "Regional Industry/Employment Measure Program" that was worked out on August 28th of this year will be implemented sequentially in cooperation with regional Labor Relations Bureaus and regional Economy, Trade and Industry Bureaus. (Repeat of II 1.)

2. Implementation of a package of special measures for employment assistance

In order to limit to a minimum the effect on employment that will accompany the promotion of the disposal of non-performing loans, the largest issue now, and to stabilize employment, a package of special measures for employment assistance will be implemented immediately, such as active use of various subsidies.

• The requirements that job placement must be made by public employment security offices in order to get various employment subsidies will be relaxed and the job placements covered by the subsidies will be expanded to those made by private job-placement institutions.(Implementation on October 1)
  
  
• New special subsidies for employment development for job seekers will be flexibly utilized. When unemployment situations worsen across the country, subsidies will be provided to business operators who employ persons covered by the re-employment assistance program. (Implementation on October 1)
  
  
• Subsidies to help small and medium-sized enterprises and venture firms to create new businesses will be provided in order to create job opportunities appropriate to regional needs. (Implementation on October 1)
  
  
• Subsidies to help business suspension, etc. will be provided to individual business operators, regardless of their type of business, who are forced to retrench business operations due to business fluctuations in order to maintain employment. (Implementation on October 1)
  
  
• In order to support labor mobility, subsidies will be provided to business operators who employ engineers from peer companies in the construction industry. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Labor mobility within group companies will be supported by providing subsidies to subsidiaries that accept the middle-aged and older people and to business operators who set up new business establishments and employ more than a certain percentage of older people. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• In order to ease violent changes caused by massive unemployment and to support labor mobility without causing unemployment, subsidies will be provided to employers establishing a long-term leave system for employees who are due to retire. (Request for supplementary budget now under consideration.)

3. Strengthening labor mobility without causing unemployment

In order to facilitate re-employment of the workers who are compelled to leave their jobs, various subsidies will be actively utilized and measures for labor mobility without unemployment will be strengthened in cooperation with the private sector.

• The use of the re-employment support system will be further increased by providing subsidies to business operators engaged in re-employment support for those covered by the re-employment support program by using private employment support firms. (Request for supplementary budget now under consideration)
  
  
• The system of the Industry and Employment Stability Center, a public-private institution that supports temporary transfer, will be reinforced in order to enhance its function as a collector and provider of information on human resources movement, a function performed in cooperation with such industries as construction, distribution, and real estate. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Temporary counseling corners (Assist Hello Work) will be established flexibly at companies that produce a large number of job leavers. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• Requirements for special subsidies for emergency job creation and for new/growth field job creation will be reviewed by the end of September in order for jobs introduced by private job-placement agencies to be eligible for such subsidies and to be effectively utilized. (The requirements to be reviewed by the end of September. Request for supplementary budget now under consideration)

4. Stabilization of life of the unemployed and promotion of employment

In order to stabilize the life of the unemployed and to promote employment, various support measures will be implemented for the unemployed.

• In order to promote re-employment through human resources development, extended training benefits for beneficiaries of unemployment benefits will be upgraded so that more effective and longer training can be provided. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• As a safety net for unemployed household having difficulties in maintaining living due to the unemployment of self-employed persons and part-time workers who are not covered by employment insurance plans and to the expiration of unemployment benefits, a new system to extend living funds (support funds for the unemployed) under certain conditions will be created. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• In order to improve the accrued wage advance payment system, the upper limit on advance payment will be raised. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• A notice will be issued to make it thoroughly known that, in case of difficulty in paying expenses for day-care centers due to a loss of job, the classification of the income bracket under the expense collection system can be changed and that children of unemployed persons are eligible for admission to a day-care center while the persons are searching for employment. (To be implemented sequentially)
  
  
• On the basis of the "civil legal aid law," legal remedy will be provided to the self-employed and workers who are in a state of bankruptcy due to business failure, etc. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)

5. Enactment of the "Emergency Employment Measures Bill (tentative name)"

In the light of severe employment and unemployment situations and in order to implement emergency measures that are necessary to stabilize the living and promote re-employment of persons out of work, the "Emergency Employment Measures Bill (tentative name)" will be submitted to the extraordinary session of the Diet, incorporating upgrade of the extended training benefits (see ‡V4), employment subsidies to small and medium-sized enterprises engaging in management innovation, and the creation of temporary special measures concerning worker dispatch (extension of the dispatch period of middle-aged and older persons to three years from one year). (The bill is to be submitted to the extraordinary session of the Diet)

6. Enhancement of safety net for SMEs

Business start-ups and innovation of promising and motivated SMEs will be supported in line with the progress of structural reforms. The safety net will be further enhanced, including new financial measures to prevent chain reaction bankruptcies of such SMEs and to support their business rehabilitation.

• New credit guarantee system will be established with regard to loans secured by accounts receivable. (A bill to revise the Small and Medium Enterprise Credit Insurance Law is to be submitted to the extraordinary session of the Diet. Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• In order to facilitate business start-ups and innovation of SMEs, support of financing and human resources development by providing to specialized business knowledge will be promoted and enhanced. (Related bills are to be submitted to the extraordinary session of the Diet. Request for supplementary budget now under consideration. Requesting budget in fiscal 2002) (Repeat of I 2.)
  
  
• Safety net guarantee system provided by credit guarantee associations and the safety net loan system by government-affiliated financial institutions will be enhanced. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)
  
  
• DIP financing will be promoted for corporations in bankruptcy procedures for first-track rehabilitation, such as in court-led rehabilitation procedure. (Request for supplementary budget now under consideration. Requesting budget in fiscal 2002)