Policies for displacement in Japan Masakuni HIRASHIMA Planning - - PowerPoint PPT Presentation

Policies for displacement in Japan

Masakuni HIRASHIMA Planning Director for Employment Policy Ministry of Health, Labour and Welfare of Japan Ministry of Health, Labour and Welfare of Japan

Conference for launch of the OECD Analytical Report on Displaced Workers 16‐17 May 2013, Paris, France

6.0 1.10 （％） （times）

Latest peak of jobs-to-applicants

Overview of Employment Situation

Highest in past 5.5 1.00 完全失業率

過去最高 5.5％

14年6月 8月 15年4月 Jobs-to-applicants ratio in March. 2013, 0.86 jobs to applicants ratio:1.08 July 2006 Latest peak of unemployment

Highest in past rate 5.5％

June Aug 2002 April 2003 g p 368 million people Aug in 2002 5.0 0.90 14年6月、8月、15年4月、 21年7月 June, Aug. 2002, April 2003 July 2009 4.0 4.5 0.70 0.80

Jobs-to-applicants ratio (left scale） Unemployment rates (right scale）

Latest valley of

3.5 0.60

Unemployment rate in March 2013, 4.1％

2.67 million people

(left scale）

Latest valley of unemployment rate July in 2007 3.6％

3.0 0.50

Up May 97 U N 00

Jobs-to-applicants ratio Lowest in the past 0.42 Aug in 2009 2.5 0.40

Source: Labour Force Survey (Ministry of Internal Affairs and Communications) ※ Shaded areas show recession periods Employment Security Service Statistics (Ministry of Health, Labour and Welfare)

Up May 97 Up Nov 00 Up Feb 08

1997 1998 1999 2000 20001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Down Mar 09 Down Jan 02 Down Jan 99

1

Employment Measures after the Economic Crisis

Relaxation of requirements for Employment Adjustment Subsidy Program “Protect” Employment Relaxation of requirements for Employment Adjustment Subsidy Program

The Program provides employers with subsidies that finance a portion of their wage expenses. This will apply when employers suspend business

• perations.

⇒ Expand the qualifying condition / Increase the amount and period of subsidies

Reinforce Public Vocational Training “Connect” Employment Establish Jobseekers Support System

Provide vocational training for unemployed who are not eligible to unemployment insurance.

Reinforce Employment Insurance System “C ” E l Execute Employment Creation Fund Projects

・Subsidy Project to Boost Employment in Rural Areas ・Emergency Job Creation Program(Create temporary employment )

“Create” Employment

Emergency Job Creation Program(Create temporary employment ) ・Schemes for Generation of Employment in Priorities （Employment Creation in Priorities such as the growing promising priority fields, nursing care, medical care, etc. )

2

Reinforcement of Employment Adjustment Subsidy Program after Economic Crisis

Relaxation of requirements

【production volume requirement】 Production volume in latest six months decreases by 10% or more compared to previous year. Expand the scope for employers to receive support immediately. Production volume decreases in latest three months by 5%

• r more compared to previous year or another three

th (N 2008) p p y months . (Nov 2008) 【employment periods requirement】 Workers whose employment periods are less than 6 months In order to cover new graduates and temporary workers All workers are covered, regardless of the duration of periods are less than 6 months are not covered. g employment periods. (Nov 2008)

Increase subsidy rates / Prolong subsidy period

【subsidy rates for expenses】 Large firms １／２ SMEs ２／３ 【subsidy rates for expenses】 Large firms ２／３ (Jun 2009) SMEs ４／５ (Nov 2008) 【subsidy amounts for training】 １,２００ JPY ( = 12USD )/day 【 subsidy amounts for education and training 】 Large firms ４,０００JPY ( = 40USD) /day (Jun 2009) SMEs ６ ０００JPY (=60USD)/day (Nov 2008) SMEs ６,０００JPY (=60USD)/day (Nov 2008) 【Maximum subsidy days】 100days per a year and 150days in 3 years 【Maximum subsidy days】

300days in 3 years (Jun 2009) 3

Outcome and Effect of Employment Adjustment Subsidy Program

The number of firms and workers under Employment Adjustment Subsidy Programs The number of firms and workers under Employment Adjustment Subsidy Programs soared after the Economic Crisis, but are decreasing gradually since FY 2010.

【peak】 The number of firms using the subsidy：96,400（October 2009） The number of approved people：2,527,754 （July 2009）

The number of firms using the subsidy The number of approved people FY 2008 407 21 182

pp p p y

FY 2008 407 21,182 FY 2009 66,168 1,774,871 FY 2010 62,976 836,195 FY 2011 43,323 645,675

(average of each month)

FY 2012(prompt) 27,488 384,973

The Employment Adjustment Subsidy Program has contributed to protect employment. 【A i l l l i 】

(average of each month)

【A trial calculation】 The program contributed to decrease unemployment rates by 0.5 to 1.0 percent, according to a trial calculation by Cabinet Office, Government of Japan. 【E l i f hi b id (2011 )】 【Evaluation of this subsidy program (2011 survey)】 Closed firms rate after 1 year since firms began to use this program : 0.71％ Protected workers rate after 6 months since workers were covered by this program : 93.8%

4

Training for displaced workers

GOJ started training for job seekers who were not covered by unemployment insurance in July 2009 in addition to traditional ones mainly for unemployment insurance beneficiaries. The new system was legislated later.

【target people】 Jobseekers who are not covered by employment insurance, such as non-regular workers and people with no work experience are able to use free training people with no work experience, are able to use free training. Training period : 3 to 6 months. 【Implementing bodies】 Private training institutions MHLW certifies implementing bodies for each training course. 【B fit 】 【Benefits】 Support Training Benefits are distributed to job seekers who meet requirements. ・100,000 JPY ( = 1,000USD) per month ・traveling costs to attend the training institution traveling costs to attend the training institution ・50,000 JPY (= 500USD) loan for applicants ( 100,000 JPY ( = 1,000USD) loan if individuals have spouse. ) ※1USD = 100JPY

5

Increase of Public Vocational Training for Jobseekers after Economic Crisis (Output of Public Vocational Training for Jobseekers)

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012(as of end of February 2013) The

Employment

The Employmen The Employmen The Employmen The

Employment

number of trainees

Employment rates

number of trainees Employmen t rates number of trainees Employmen t rates number of trainees Employmen t rates number of trainees

Employment rates

Public Vocational Training (Training mainly for unemployment insurance beneficiaries) 131,800 68.3～74.5 191,228 62.4～73.9 166,681 63.7～77.6 149,112 66.8～80.3 144,178

• Support training

Support training (Training for jobseekers not covered by the unemployment insurance)

• 48,528

60.3% 292,252 69.2% 265,250 73.4～ 77.5% 98,555

• Total

131,800 239,999 458,900 414,362 242,733 (Note 1) 6 Employment rates on public vocational training refer to employment rates at 3 months after training ended. (Note 2) Output of support training in fiscal year from 2008 to 2011 includes the number of support training programs before the law was in force.

Expansion of Scope of Non‐regular Workers for Unemployment Insurance

Before 2008

・Fixed working hours/wk: 20 hours or more ・Employment term (expectation): 1 year or longer

After 2009

・Fixed working hours/wk: 20 hours or more ・Employment term (expectation): Six months or longer

* Scope was expanded due to the economic crisis After 2010 Scope was expanded due to the economic crisis

・Fixed working hours/wk: 20 hours or more ・Employment term (expectation): 31 days or longer

* Scope was expanded further to protect non‐regular workers p p p g

７

Extension of the Unemployment Benefits

For the unemployed who leave their jobs because of bankruptcy, dismissal, or non‐renewal of labor contracts and who have difficulty becoming re‐employed in light of their age, area, etc., the basic allowance is extended for 60 days. (A temporary measure valid for those who leave their jobs before March 31, 2014).

Outline

An additional 60 days of benefits will be provided as an entitlement to those who left jobs because of the earthquake and tsunami of 2011.

Beneficiary (A job seeker who satisfies any of the following conditions)

(1) A person who is younger than 45 (2) A person who lives in an area where the following conditions have existed during the last month: ①

Beneficiary (A job seeker who satisfies any of the following conditions)

① The ratio of Job seekers to labor force population is equal to or higher than the national average. ② The jobs‐to‐applicants ratio in the area is less than 1.0. ③ The rate of basic unemployment insurance recipient is equal to or higher than the national average. (3) A person who has been recognized by the head of the Public Employment Service Office as needing f l h l k h k l d k ll d k systematic support for re‐employment, while taking into account the knowledge, skills, and work experience

• f the beneficiary.

Outcome (2009)

553,000 people (Approximately a quarter of total beneficiaries)

８

( )

Created Jobs ( number of people who got jobs )

Ｏｕｔput of the projects

Employment Creation Fund Projects

※１USD ＝ １0０JPY

Budget Expenditure ( p p g j ) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Total

Subsidy Project

２５０ ２３６billi

Subsidy Project to Boost Employment in Rural Areas

２５０ billion JPY ( = ２．５ billion USD) ２３６billion JPY ( = ２．４ billion USD) ７２ ２４,４２９ ３１,６９２ ３２,６７９ ３７０ ８９,２４２

Emergency Job Creation Program

４５０ billion JPY ( = ４．５ billion USD) ４１７billion JPY ( = ４．２ billion USD) ４,５５２ １８７,６７８ １９０,０２７ １７１,２７７ － ５５３,５３４

Schemes for Generation of Employment in Priorities

８８１ billion JPY ( = ８．８ billion USD) ６１１billion JPY ( = ６．１ billion USD) － ４９７ ８０,１４８ １５０,８４１ １６５,０９６ ３９６,５８２

N t Note: *Subsidy Project to Boost Employment in Rural Areas Support emerging small businesses and create continual jobs. * Emergency Job Creation Program Create temporary jobs such as cleaning up parks. *Schemes for Generation of Employment in Priorities Support businesses in growing fields such as medical services, caring and environment, aiming at sustainable employment recovery.

９

Enforce subsidy for supporting labour b l

Enforce the support of Industrial E l S bili i C

Policy Shifts from Over Protection to Labour Mobility

■Subsidy is distributed to employers who entrust re- employment support for displaced workers to private human resource bodies.

■Enforce the manpower of the Center and strengthen its mediation function for re- employment.

mobility

Employment Stabilization Center

Private human resource bodies Create subsidy for Enforcement 1： eligible firms

p y

Enforcement２： vocational training１ (in order to get new jobs）

Create subsidy for creative and flexible training by private bodies Only SMEs

Enforcement 4: Vocational training 2 (after finding jobs)

SMEs and Large firms

Ｊ

Create subsidy for training (Off-JT・OJT) conducted by accepting firms

Only one time after achieving re-employment

Enforcement 3: timing of subsidy Two times（When entrusting＋After

hi i ）

(after finding jobs)

Matured industries Growing

achieving）

C C lti Enforcement for helping job seekers find jobs

industries g industries

Industrial Employment Stabilization Center ・Career Consulting ・Create support measures in accordance with personal challenges ・Conduct training by private training bodies

１０