Analysis of the Labour Economy - mhlw[Summary] September 2018 Ministry of Health, Labour and Welfare...

2018

Analysis of the Labour Economy

― Ideal Human Resource Development

that Varies According to Diversified Work Styles ―

[Summary]

September 2018

Ministry of Health, Labour and Welfare

2018




[Outline]

[General employment situation]

○ Unemployment rate fell to a 24-year low of 2.7% in FY 2017, and the effective ratio of job offers to seekers

marked a 44-year high of 1.54 in the same fiscal year. This suggests that employment conditions have been

steadily improving in Japan. (Fig. 1-1)

○ Among employed persons aged between 15 and 54, the number of regular workers increased for the third

consecutive year in 2017 to 28.41 million (an increase of 0.36 million from the previous year). (Fig. 1-2)

○ The diffusion index (DI) for employment conditions suggests that more companies have come to feel they are

short on manpower. A survey conducted in March 2018 finds that the corporate perception of labor shortages

was the second highest since the 1980s bubble economy in all industries –both manufacturing and non-

manufacturing sectors. (Fig. 1-3)

[Trends of wages]

○ The nominal wage of full-time workers has increased for five consecutive years since FY2013, and the hourly

wage of part-time workers has also increased for seven consecutive years since FY2011. (Fig. 1-4)

○ As increasing numbers of women and elderly people join the labor market, they are starting to make up a

larger part of the workforce. This has contributed to lowering the average monthly wage of full-time workers,

but wages of female and elderly workers have been on the rise. (Fig. 1-5)

In addition, the total employee income, which is regarded as the income of all people, has been growing

thanks to the increase in the number of female and elderly employees, etc. (Fig. 1-6)

Part I: Transition and Features of the Labour Economy up to FY2017

1

-3

-2

-1

0

1

2

3

2012 13 14 15 16 17

物価要因

雇用者数要因

名目賃金要因

(Year-to-year comparison of the level of contribution, %)

Year-to-year comparison

of total employee income

(real)

Commodity price

Number of employees

Nominal wages

1.59

2.41

1.08

2.52

3

4

5

6

0

1

2

3

1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1

2008 09 10 11 12 13 14 15 16 17 18

Unemployment rate

(right axis) Ratio of new job

offers to seekers

Effective ratio of job offers to

seekers for regular employees

Effective ratio of job

offers to seekers

(Times) (%)

Fig. 1-4: Trends of wages of full-time workers (monthly

amount) and hourly wages of part-time workers

11

12

13

14

27

28

29

30

百

(Million persons) (Million persons)

Regular personnel/employees

Non-regular

personnel/employees

(right axis)

Fig. 1-2: Trends of regular/non-regular

personnel/employees

-32

-24

-37-40

0

40

3 12 9 6 3 12 9 6 3 12 9 6 3 12 9 6 3 12 9 6 3

200304 05 06 07 08 09 10 11 12 13 14 15 16 1718

Manufacturing industries

All industries

Non-manufacturing industries

(“Excess” minus “Shortage”, % points)

41.5

1,116

950

1,000

1,050

1,100

1,150

38

39

40

41

42

43

44

2008 09 10 11 12 13 14 15 16 17

(Yen)(10,000 yen)

Hourly wages of part-time

workers (right axis)

Fig. 1-1: Trends of unemployment rate/effective

ratio of job offers to seekers, etc.

Wages of full-time workers

(monthly amount)

Fig. 1-5: Breakdown of the level of contribution

to wages of full-time workers (monthly amount)

Fig. 1-6: Breakdown of the level of

contribution to total employee income (real)

12.99 million

persons

28.41 million

persons

-3

-2

-1

0

1

2

3

2012 13 14 15 16 17

60歳以上比率による要因

60歳未満女性比率による要因

賃金要因（60歳以上）

賃金要因（60歳未満女性）

賃金要因（60歳未満男性）


Year-to-year comparison of wages of full-time workers

Percentage of persons aged 60 or older

Percentage of females younger than 60

Wages (60 or older)

Wages (females younger than 60)

Wages (males younger than 60)

Fig. 1-3: Trends of the diffusion index (DI)

for employment conditions

Exce

ss

Sh

orta

ge

2

[Labour productivity trend]

○ A slowdown in labor productivity growth has been a common issue among G7 countries. It is necessary for

them to promote investment in human resources as well as IT and other types pf capital in order to improve

labour productivity. (Fig. 2-1)

[ Trends in costs of employee vocational ability development]

○ As a percentage of GDP, costs of employee vocational ability development by companies (*) are shrinking in

Japan, and this may cause concern that human capital of workers will not be sufficiently accumulated. (Fig. 2-

2)

○ Meanwhile, analysts believe that businesses, mainly companies facing imminent labor shortages, will focus

more on human resource development. Therefore, it is vital for the government to discuss ways of nurturing

human resources effectively. (Fig. 2-3)

(*) Note that OJT (On-the-Job Training) costs are not included.

[Trends in the diversification of human resources based on sex, age, nationality, employment form, type

of occupation and other elements]

○ More and more companies, especially firms focusing on innovation and global expansion, are embracing

workforce diversity, and workplaces are expected to become increasingly diverse in the future. (Fig. 2-4)

○ In Japan, many companies place importance on nurturing generalists or cultivating internal human resources.

But, specialists are likely to be more valued in some of those firms, ones focusing on innovation or expanding

businesses globally. (Fig. 2-5)

○ At present, both large companies and small and medium-sized companies are providing job opportunities for

mid-career workers. The aim is to recruit skilled personnel with advanced knowledge in specialized fields and

other qualifications. Employment opportunities for mid-career workers are expected to increase. (Fig. 2-6)

Part II: Chapter 1: Status of Labour Productivity and Vocational Ability

Development and Progress in Diversified Work Styles

3

50.3

35.6

16.6

66.5

22.2

29.3

0

10

20

30

40

50

60

70

専門分野の高度な

知識やスキルを

持つ人が欲しいから

高度とか専門とか

ではなくてよいので

仕事経験が豊富

な人が欲しいから

高度なマネジメント

能力、豊富なマネジ

メントの経験がある

人が欲しいから

300人未満

1,000人以上

(%)

Less than 300 persons

1,000 or more persons

Wa

nt to

hire

hu

ma

n

reso

urc

es w

ith a

dva

nce

d

kn

ow

led

ge

/skills

in

sp

ecia

lize

d fie

lds

Wa

nt to

hire

hu

ma

n

reso

urc

es w

ith

ab

un

da

nce

of w

ork

e

xp

erie

nce

reg

ard

less o

f th

eir le

ve

l an

d

sp

ecia

lize

d fie

ld

Wa

nt to

hire

hu

ma

n

reso

urc

es w

ith a

dva

nce

d

ma

na

ge

me

nt s

kills

an

d

ab

un

da

nce

of

ma

na

ge

me

nt e

xp

erie

nce

-0.5

0.5

1.5

2.5

3.5

1996-2000 2001-2005 2006-2010 2011-2016

(%)

U.S.A.

Japan

Germany

Canada

France

Italy

U.K.

Fig. 2-1: Rate of increase/decrease in labour

productivity (real)

2.08

1.78

1.201.09 1.06

0.10

0

0.5

1.0

1.5

2.0

2.5

米国フランスドイツイタリア英国日本

1995-1999年

2000-2004年

2005-2009年

2010-2014年

1995-1999

2000-2004

2005-2009

2010-2014

(%)

U.S.A. France Germany Italy U.K

.

Japan

736

545

400

500

600

700

800

2010 12 14 16

(10,000 yen)

Occupational vocational

ability development costs

(Average amount per

company)

42.3

21.7

0

10

20

30

40

50

60

全規模・全産業

48.9

64.163.8

77.8

0

30

60

90

全規模・全産業グローバルな

経済活動・

イノベーション

活動を重視

する企業

Comparison between 5 years ago and present Prospects for

next 5 years

All scales/all industries

Companies that place importance

on global economic activities/innovation

activities

85.6

77.7

14.4

22.3

0

20

40

60

80

100

規模計グローバル

な経済活動・


活動を重視

する企業

Importance of generalists will increase in the future

(%)

Importance of specialists will increase in the future

Total of all scales

Companies that place importance

on global economic activities/ innovation activities

8.2

13.1

0

5

10

15

300

人未満

1,000

人以上

Less th

an

300 p

ers

ons

1,0

00 o

r

more

pers

ons

Fig. 2-2: Trends of vocational ability

development costs of companies in GDP

Fig. 2-3: Transition of vocational ability development costs up to recent years (left) and

prospect of future human resource development in the future (right)

Companies with

labour shortage

Companies

with sufficient

labour, etc.

(“Strengthen” minus “No

change, etc.”, % points)

Fig. 2-4: Status of diversification of

human resources within the company

and future prospects

Fig. 2-5: Companies’ attitudes toward human

resource management (left) and future prospects

of “companies placing importance on

generalists/internal human resources” (right)

Fig. 2-6: Purpose of recruiting mid-career

employee (left) and companies’ future

prospects for mid-career employment (right)

(“Will increase” minus

“Will reduce”, % points)

Developing

generalists/

internal

human

resources

Hiring

generalists/

external human

resources

Developing

specialists/internal

human resources

Hiring specialists/

external human

resources

39.8%

33.2%

15.9%

11.0%

(“Diversification progressed (will progress)” minus

“Uniformization progressed (will progress”, % points))

Turned to an increasing trend

4

All scales/all industries

Place importance on specialists

Place importance on generalists

Internal human

resources

External human

resources

[Challenges companies face when providing vocational ability development opportunities]

○ Investing in off-the-job training and support for employees’ personal development has proven to boost labor

productivity, etc. in the following year. In addition, workers in companies promoting vocational ability

development are more likely to feel motivated and engaged.(Fig. 3-1)

○ Companies offering more OJT programs than other firms have realized that OJT is effective in boosting

productivity at the workplace. In addition, efforts such as assigning more challenging tasks according to

workers’ ability, providing consultation and advice on work, and expanding their role in the establishment,

etc., can lead to improved productivity at the workplace, etc. (Fig. 3-2)

○ Companies with a diverse workforce have been expanding efforts for vocational ability development as part of

human resource management. Such efforts include placing instructors and trainers on staff and providing

financial support for off-the-job training. At those companies, all types of employees can fully demonstrate

their abilities. (Fig. 3-3)

[Skills necessary to survive the age of AI]

○ As AI is becoming commonplace, it is important for both workers and employers to have qualities necessary

to survive the age of AI, such as willingness to take on new or difficult tasks, and communication skills. (Fig.

3-4)

Part II Chapter 2: Challenges of Nurturing Human Resources while Coping

with Employees' Work Styles and Changes in Business Environment

5

15.014.1

13.8

7.97.3

0

5

10

15

20

段階的に高度

な仕事を割り

振っている

仕事について

相談に乗ったり、

助言している

仕事の幅を

広げている

仕事のやり方を

実際に見せている

会社の理念や

創業者の考え方

を理解させる

Assig

n a

dvanced

work

in a

ste

pw

ise m

anner

Pro

vid

e

consulta

tion a

nd

advic

e o

n w

ork

Expand ro

le in

the

work

pla

ce

Show

how

to w

ork

in p

ractic

e

Facilita

te

unders

tandin

g o

f

the c

om

pany’s

prin

cip

les a

nd th

e

founder’s

philo

sophy

13.2

21.3

17.3 18.7

0

10

20

30

OFF-JT

に

支出

自己啓発支援に

支出

37.3

20.523.3

43.0

0

10

20

30

40

50

企業が能力開発に

積極的になった

と感じる労働者

企業が能力開発に

消極的になった

と感じる労働者

Work

ers

feelin

g

that c

om

panie

s

becam

e a

ctiv

ein

vocatio

nal a

bility

develo

pm

ent

Work

ers

feelin

g

that c

om

panie

s

becam

e in

activ

e

in v

ocatio

nal

ability

develo

pm

ent

10.210.1

8.9

7.4

6.5

0

2

4

6

8

10

12

指導役や

教育係の配置

（メンター制度等）

本人負担の

社外教育に対する

支援・配慮

企業としての

人材育成方針・

計画の策定

転勤

（事業所間の移動）

他企業との

人材交流

（出向等）

Pla

cem

ent o

f

coaches a

nd

teachers

(mento

r

syste

m, e

tc.)

Support/c

onsid

er

atio

n fo

r

paym

ents

of

exte

rnal tra

inin

g

Fo

rmula

tion o

f

hum

an re

sourc

e

develo

pm

ent

polic

y/p

lan a

s th

e

com

pany

Job tra

nsfe

r

(transfe

r betw

een

esta

blis

hm

ents

)

Pers

onnel

exchange w

ith

oth

er c

om

panie

s

(tem

pora

ry

transfe

r, etc

.)

74.6

59.2

0

50

100

OJT

に係る取組の

実施個数が

相対的に多い企業

OJT

に係る取組の

実施個数が

相対的に少ない企業

Fig. 3-1: Relationship between vocational ability development and

companies’ performance/workers’ motivation

Fig. 3-2: OJT efforts that can lead to improved productivity at the

workplace, etc.

Fig. 3-3: Vocational ability development-related efforts actively made by companies

in which abilities of diversified human resources are fully demonstrated

(%) (%)

Motivation toward work increased

Motivation toward work decreased

(%)(“Human resource development is effective in improving productivity, etc.”

minus “Not effective”, % points)

(“Abilities of diversified human resources are fully demonstrated” minus

“Issues exist in demonstrating abilities”, % points)

Effect of

improving labour

productivity in

the following yearEffect of

improving

sales in the

following year

Percentage of companies that

recognize improved productivity, etc.

63.8 61.9

54.7

45.7

21.0

51.7

61.4

48.3

28.5

16.6

0

20

40

60

80

① ② ③ ④ ⑤

Skills that regular employees

considered to be important

Fig. 3-4: Skills considered important in the age in which AI is

commonly utilized

① Human qualities such as willingness to take on new challenges, self-motivation, ability to take action, and insight, etc.

② Human relations skills such as communication skills and coaching, etc.③ Planning/expressive abilities and creativity④ Operational execution capabilities such as abilities to collect information, abilities to solve

problems, and logical thinking⑤ Basic knowledge such as language skills, understanding, and expression

(%)

Skills that companies

considered to be important

(Many c

om

panie

s c

onsid

er th

at h

um

an re

sourc

e

develo

pm

ent is

effe

ctiv

ein

impro

vin

g p

roductiv

ity, etc

.)

(Imp

lem

en

tatio

n ra

te is

hig

hin

com

panie

s in

whic

h a

bilitie

s o

f div

ers

ified h

um

an re

sourc

es a

re fu

lly dem

onstra

ted)

6

Spent O

FF

-JT

costs

Spent s

elf-

develo

pm

ent

support c

osts

Com

panie

s w

ith a

rela

tively la

rge

num

ber o

f OJT

effo

rts

Com

panie

s w

ith a

rela

tively s

mall

num

ber o

f OJT

effo

rts

[Employment management at companies in which various employees with different backgrounds can

fully demonstrate their abilities]

○ Many of the above-mentioned companies have maintained strong corporate earnings including high sales

profits and greater labor productivity. They also have seen an increase in the number of both regular and

non-regular employees. (Fig. 4-1)

○ The above-mentioned companies have taken steps to expand opportunities for vocational ability

development and eliminate unreasonable disparities in working condition between employees (between

males and females, between regular and non-regular employees, etc.). (Fig. 4-2)

[Status of ‘gentei seishain,’ employees working under a limited regular employment contract]

○ About 50% of female workers in regular positions say they may opt for working on a limited regular

employment contract in the future. They cite balancing motherhood with a career as a reason for their

response . (Fig. 4-3)

[Agenda: how to train employees to become managers]

○ There are a considerable number of employees who do not wish to be promoted to managers, partly due to

the following reasons: they may have to work longer hours because of increased work volumes, they are

concerned about their management skills, and wage levels are not commensurate with their work

responsibilities. Companies should therefore take further steps to review work responsibilities of managers,

provide them with opportunities for vocational ability development, and improve their working condition.

(Fig. 4-4)

Part II Chapter 3: Promote Better Employment Management that Varies

According to Diversified Working Styles

7

42.6

36.1 35.4

27.7

34.3

18.4

28.4

23.0

0

10

20

30

40

50

売上高

労働生産性

正社員数

非正社員数

Companies in which abilities of diversified

human resources are fully demonstrated

Companies with issues regarding

demonstration of abilities of

diversified human resources

Sale

s

Labour

pro

ductiv

ity

Num

ber o

f

regula

r

em

plo

yees

Num

ber o

f

non-re

gula

r

em

plo

yees

61.1

38.9

0

20

40

60

80

管理職に昇進したい

と思わない

管理職以上（役員含む）

に昇進したい

(%)

Do n

ot w

ish to

be

pro

mote

d to

managers

Wis

h to

be p

rom

ote

d to

managers

or h

igher

levels

(inclu

din

g

executiv

es)

10.7 10.5 10.4 10.39.6

9.1

0

5

10

15

能力開発機会の充実

従業員間の不合理な

待遇格差の解消

（男女間、正規

・非正規間等）

本人の希望を踏まえた

配属、配置転換

仕事と病気治療との

両立支援

仕事と介護との

両立支援

育児・介護・病気治療

等により離職、休職

された方への復職支援

(“Abilities of diversified human resources are fully demonstrated” minus

“Issues exist in demonstrating abilities”, % points)

Expand o

pportu

nitie

s

for v

ocatio

nal a

bility

develo

pm

ent

Elim

inate

unre

asonable

dis

paritie

s in

work

ing

conditio

n b

etw

een

em

plo

yees (b

etw

een

male

s a

nd fe

male

s,

betw

een re

gula

r and

non-re

gula

r em

plo

yees,

etc

.)

Pla

cem

ent/re

assig

nm

ent a

ccord

ing to

indiv

idual w

ishes

Support fo

r bala

ncin

g

work

and d

isease

treatm

ent

Support fo

r bala

ncin

g

work

and n

urs

ing

care

Support fo

r those w

ho

left th

eir jo

bs o

r took a

leave o

f absence d

ue

to c

hild

care

/nurs

ing

care

/dis

ease tre

atm

ent,

etc

. to re

turn

to w

ork

Fig. 4-4: Desires of employees not in managerial positions, etc. to be promoted

to managers (left) and reasons for not wishing to become managers (right)

71.3

65.8

57.7 57.7

34.1

0

20

40

60

80

責任が重くなる

業務量が増え、

長時間労働になる

現在の職務内容

で働き続けたい

部下を管理・指導

できる自信がない

賃金が上がるが、

職責に見合った

金額が払われない

(%)

Responsib

ilities w

ill

be h

eavie

r

Work

volu

me w

ill

incre

ase a

nd

work

ing h

ours

will b

e

longer

Want to

contin

ue to

work

with

the s

am

e

work

conte

nt

Not c

onfid

ent to

manage/s

uperv

ise

subord

inate

s

Wages w

ill be

rais

ed, b

ut n

ot

enough to

matc

h

work

responsib

ilities

23.0

47.1

0

25

50

今後、限定正社員を

希望する可能性がある

May re

quest to

becom

e a

limite

d

regula

r em

plo

yee

in th

e fu

ture

Fig. 4-1: Relationship between demonstration of abilities of diversified

human resources and sales/labour productivity, etc.

Fig. 4-2: Employment management actively implemented by companies

in which abilities of diversified human resources are fully demonstrated

(“Improved/increased” minus “Worsened/decreased”, % points)

Fig. 4-3: Intentions of so-called regular employees for the work style of

limited regular employee (left) and reasons for their wishes (right)

68.3

35.6 35.031.9

25.8

64.4

40.5

23.2

60.7

18.9

0

40

80

余暇時間を

大切にしたい

仕事と介護の両立

職務を限定して

専門性を高めたい

仕事と育児の両立

職務を限定した方が

今後のキャリア設計

をしやすい

MalesFemales

(%)

Want to

enjo

y

leis

ure

time

Bala

ncin

g w

ork

and n

urs

ing c

are

Want to

impro

ve

expertis

e b

y

limitin

g d

utie

s

Bala

ncin

g w

ork

and c

hild

care

Lim

iting d

utie

s

makes fu

ture

care

er

develo

pm

ent e

asie

r

Males

Females

(%)

(Imp

lem

en

tatio

n ra

te is

hig

hin

com

panie

s in

whic

h a

bilitie

s o

f div

ers

ified h

um

an re

sourc

es a

re fu

lly dem

onstra

ted)

(In m

any c

om

panie

s, la

bour p

roductiv

ity and th

e

num

ber o

f em

plo

yees h

ave im

pro

ved

/incre

ase

d)

8

[Career change and the labor market situation]

○ In an era of 100-year life, life expectancy in Japan has risen, and people are expected to lead longer working

lives. This means they are increasingly likely to change jobs a number of times. Trends in the market of

workers seeking career changes show that an increasing number of people, mainly full-time workers, have

changes their jobs. (Fig. 5-1)

○ Under such circumstances, it is important to offer each of those who have changed jobs opportunities for

vocational ability development in order to improve their working life satisfaction. (Fig. 5-2)

[Employee self-development and support measures]

○ As the country is entering an era in which many people will live to 100 years old, it is vital to make it easier for

everyone to be able to develop their career on their own initiative regardless of age. Though the figure 5-3

shows that people are less likely to spend time to enhance themselves as they get older, more individuals,

mainly those aged 50 or older, currently focus on developing their skills than before. (Fig. 5-3)

○ Beside financial support, successful ways for companies to motivate their employees to develop their skills

include providing information on education/training institutions as well as offering career consultations. (Fig. 5-

4)

Part II Chapter 4: Make It Easier for Everyone

To Pursue Their Career on Their Own Initiative

9

54.0 53.852.7

48.3

40

50

60

職務遂行に

必要な能力・

知識を付与

する教育訓練

（OFF-JT）

入職時の

ガイダンス

（OFF-JT）

計画的な

OJT

実施しな

かった

(“Satisfied” minus “Unsatisfied”, % points)

Education and

training for acquiring

skills/knowledge

necessary for

performing duties

(OFF-JT)

Guidance at the

time of

employment

(OFF-JT)

Scheduled OJT Not

implemented

8.1 7.9 8.1

4.7

0

2

4

6

8

10A

ssis

tance fo

rvolu

nta

ry s

tudy

sessio

ns w

ithin

the

com

pany

Pro

vid

e in

form

atio

non e

ducatio

n/tra

inin

gin

stitu

tions a

nd

corre

spon

dence

cou

rses, e

tc.

Care

er c

onsulta

tion

Mo

neta

ry a

ssis

tance

for tu

ition, e

tc.

(%)

Fig. 5-1: Trends of persons who have changed their careersFig. 5-2: Implementation of education/training after the career change

and career changers’ satisfaction with overall work-life

Fig. 5-3: Implementation status of self-development by

regular employees

47.5

44.0

41.4

48.1

45.6

44.3

38

40

42

44

46

48

50

Younger than 30 Age 30-49 50 or older

FY2013

FY2016

(10,000 persons)

Fig. 5-4: Support for vocational ability development that leads to the

implementation of self-development by regular employees

Effect of promoting the

implementation of self-

development by

regular employees

246

49

38

126

145

0

50

100

150

200

250

300

万

(10,000 persons)

Full-time worker (overall)

⇒ Full-time worker (overall)

Full-time worker (indefinite-term employment)

⇒ Full-time worker (indefinite-term employment)

Part-time worker ⇒ Part-time worker

Full-time worker ⇒ Part-time worker

Part-time worker ⇒ Full-time worker

(Many c

are

er c

hangers

are

satis

fied

with

their w

ork

-life)

10

2018




[Overview]

2

3

4

5

6

0

1

2

3

1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1

2008 09 10 11 12 13 14 15 16 17 18

Unemployment rate (right axis)

Ratio of new job offers to seekers

Effective ratio of job offers to seekers

for regular employees

Effective ratio of job offers to seekers

(Times) (%)

(Year/month)

0

2

4

6

8

10

12

14

2008 09 10 11 12 13 14 15 16 17

カナダフランスドイツイタリア

日本英国米国 OECD平均

(%)

Canada

Japan

Germany

U.S.A.

Italy

OECD Avg

France

U.K.

Part I: Transition and Features of the Labour Economy

― Employment Trends [1] ―

Source: Prepared based on “System of National Accounts”, Cabinet Office (upper left figure); “Employment Security Statistics”, MHLW (upper right figure); “Labour Force Survey (Basic Tabulation)”

and “Labour Force Survey (Detailed Tabulation)”, Statistics Bureau of MIC (upper right figure and lower left figure); and OECD.stat (lower right figure)

With the Japanese economy recovering gradually, the employment situation has been steadily improving: in FY 2017, the averageunemployment rate was 2.7%, the lowest in 24 years since FY1993, and the effective ratio of job offers to seekers was 1.54, the highestin 44 years since FY1973.

The unemployment rate has been declining in all areas in Japan and remained low compared to other countries.

Transition of unemployment rate/ ratio of job offers

to seekers, etc.

International comparison of unemployment rate

(Year)

-8

-6

-4

-2

0

2

4

6

2008 09 10 11 12 13 14 15 16 17

Real GDP growth rate

Nominal GDP growth rate

Both nominal and real GDP have grown

for 6 consecutive years

(Year)

(Year-to-year

comparison. %) Transition of nominal/real GDP growth rate

2.8

3.3

2.82.9

2.5 2.5 2.4

3.0

2.5

3.1 3.1

3.8

1

2

3

4

5

6

2015年 2016年 2017年

(%) Unemployment rate by area

2015 2016 2017

Natio

nw

ide

Hokkaid

o

To

hoku

South

ern

K

anto

North

ern

K

anto

/ K

oshin

Hokurik

u

To

kai

Kin

ki

Chugoku

Shik

oku

Kyushu

Okin

aw

a

1

-40

-20

0

20

40

3 12 9 6 3 12 9 6 3 12 9 6 3 12 9 6 3 12 9 6 3

200304 05 06 07 08 09 10 11 12 13 14 15 16 1718


All industries

Non-manufacturing

industries

― Employment Trends [2] ―

The number of regular workers among employed persons aged 15-54 increased for the third consecutive year in 2017 to reach 28.41 million. In addition, theemployment rate of new university/senior high school graduates marked the highest level since the survey began.

The diffusion index (DI) for employment conditions suggests that a greater number of companies have come to feel they are short on manpower. A survey conductedin March 2018 finds that the corporate perception of labor shortages was the second highest since the 1980s bubble economy in all industries –both manufacturing andnon-manufacturing sectors.

The diffusion index on corporate perception of worker shortages by types of employment shows that the DI for regular employees is higher than that for part-timeworkers.

(“Excess” minus “Shortage”, % points)

Transition of the diffusion index (DI) for

employment conditions

(Year/month of survey)

2,841

1,299

1,100

1,200

1,300

1,400

2,700

2,800

2,900

3,000(10,000 persons)

(Year)

(10,000 persons)

Regular personnel/employees

Non-regular personnel/employees

(right axis)

99.3

98.0

88

90

92

94

96

98

100(%)

New university graduates

(As of April 1)

New senior high school graduates

(As of the end of March)

Source: Prepared based on “Labour Force Survey (Detailed Tabulation)”, Statistics Bureau of MIC (upper left figure);

“Survey on Informally Promised Employment Situation of Senior/Junior High School Graduates, etc.”, MHLW (lower left figure); “Survey on Employment Situation of University Graduates”, MHLW/MEXT (lower left figure);

“Short-term Economic Survey of Principal Enterprise in Japan”, Bank of Japan (middle figure); and “Survey on Labour Economy Trend”, MHLW (right figure)

(Notes) 1) Shaded areas in the middle figure represent the recession periods.

2) “Regular employee, etc.” refers to those employed without a definite period or those employed by concluding employment contracts for the period of at least one year, excluding “part-time workers”.

3) “Part-time workers” refers to those with the number of prescribed daily working hours or the number of prescribed weekly working days being shorter than that of regular employees at the establishment concerned.

Transition of the number of employees by

employment form (Age 15-54)

10

20

30

40

正社員等パートタイム

(Difference in DI, % points)

Regular

employees,

etc.

Part-time

workers

Excess

Sh

orta

ge

Changes in the insufficiency of labour

shortage by employment form(February 2013 survey → February 2018 survey)

Lab

ou

rsh

orta

ge is

gro

win

g

(Year)

2

Transition of employment (informal job offer) rate

41.0

39.8

40.2 40.240.1

40.3

40.740.9

41.2

41.5

39

40

41

42

2008 09 10 11 12 13 14 15 16 17(FY)

Increased for 5

consecutive years

― Wage Trends [1] ―

Source: Prepared based on “Monthly Labour Survey”, MHLW

(Notes) 1) The figures indicate nominal values for establishments with 5 or more employees in all industries surveyed.

2) The wages of full-time workers indicate corrected real numbers calculated by multiplying the index of the total cash earnings by the reference number (2015) and then dividing it by 100.

The total cash earnings (monthly amount) increased for the fourth consecutive year in FY2017 thanks to rises in scheduled wages andspecial payments of full-time workers as well as the fact that the proportion of part-time workers had had less negative impacts on thecash earnings.

The nominal wages of full-time workers have increased for five consecutive years since FY2013, and the hourly wages of part-timeworkers have also increased for seven consecutive years since FY2011.

1,013 1,019 1,017 1,021

1,031 1,041

1,055

1,070

1,091

1,116

1,000

1,050

1,100

1,150

2008 09 10 11 12 13 14 15 16 17-2

-1

0

1

2

2010 11 12 13 14 15 16 17

一般労働者の所定内給与による要因

一般労働者の所定外給与による要因

一般労働者の特別給与による要因

パートタイム労働者比率による要因

パートタイム労働者の現金給与総額による要因

(FY)


Transition of the variation factor of the total cash

earnings (monthly amount)Transition of wages of full-time workers (monthly amount)

(10,000 yen)

Transition of hourly wages of part-time workers

(FY)

Increased for 7

consecutive years

(Yen)

Year-on-year growth for 4

consecutive years

3

Scheduled wages of full-time workers

Non-scheduled wages of full-time workers

Special wages of full-time workers

Percentage of part-time workers

Total cash earnings of part-time workers

Year-to-year comparison of

the total cash earnings (nominal)

of all workers

― Wage Trends [2] ―

Source: Prepared based on “Basic Survey on Wage Structure”, MHLW (left figure and middle figure); “Monthly Labour Survey”, MHLW (right figure); “System of National Accounts”, Cabinet Office

(right figure); and “Labour Force Survey (Basic Tabulation)”, Statistics Bureau of MIC (right figure)

An increase in the proportion of female and elderly workers has had a negative impact on wage levels of full-time workers.

But gaps in wage levels between female/elderly workers and the entire labor force have been narrowing.

The growing labor participation of women and elderly people has had positive effects on the number of workers as well as

trends in the total employee income.

Breakdown of the level of contribution to

the total employee income (real)

-3

-2

-1

0

1

2

3

2012 13 14 15 16 17

物価要因

雇用者数要因

名目賃金要因

Commodity price

Number of employees

Nominal wages


(FY)


the total employee income

(real)

-3

-2

-1

0

1

2

3

2012 13 14 15 16 17

60歳以上比率による要因

60歳未満女性比率による要因

賃金要因（60歳以上）

賃金要因（60歳未満女性）

賃金要因（60歳未満男性）

Percentage of persons aged 60 or older

Percentage of females younger than 60

Wages (60 or older)

Wages (females younger than 60)

Wages (males younger than 60)



wages of full-time workers

Breakdown of the level of contribution

to the total cash earnings of

full-time workers (monthly amount)

Changes in relative wages of female/

elderly workers (aged 60 or older)

(Year)

76.7

83.3

79.0

84.2

Females Elderly (aged 60 or older)

2012 2017

(Total of males and females/total of all ages

in the respective years = 100)

4

• Analyze how to manage human resources according to circumstances each worker faces as the workforce within the company becomes more diverse and how to create an environment in which everyone willing to work can continue working

• Analyze human resource management to help workplace reforms including promoting flexible working hours since management of human resources is the key to developing employee vocational abilities and encouraging workers to take self-development opportunities

• Analyze human resource management and work arrangements that enable all types of employees to fully demonstrate their abilities and play an active role at work

• Analyze how to train employees to become managers who can play the key role in implementing the above-mentioned human resource management system

Part II: Ideal Human Resource Development that Varies According to Diversified Work Styles

• As Japan’s labor supply is limited due to the declining birthrate and aging population, it is vital for the country to maintain

sustainable economic growth and ensure that every citizen can have a vision for the better future.

• As the country is entering an era in which many people will live to 100 years old, it is necessary for Japan to create a society in

which everyone can develop their careers on their own initiative

Challenges facing Japan

Measures to take on challenges facing Japan

Improving labour productivity of every

worker through vocational ability

development, etc.

Promoting human resource management/work styles that allow

everyone to play an active role in society

Making it easier for people to acquire necessary skills and abilities throughout

their lives so that they can pursue multiple careers

• Analyze how to develop workers’ vocational

abilities effectively and study corporate efforts

on vocational ability development in other

countries, in order to boost labor productivity

• Analyze how to maintain a pool of highly skilled

professionals, including foreign nationals, who

can play the key role in dealing with global

economic activities while responding to demand

from the growing overseas market as well as

how to foster such workers

• Study changes the increased use of ICT at

work has brought about and analyze what skills

and abilities people need to acquire as

innovative technologies such as AI becomes

more widely adopted. This is because it’s

important for companies to embrace innovation

of the fourth industrial revolution in order to

sustain their competitive edge.

This year’s White Paper on the Labour Economy examines “Ideal Human Resource Development that Varies According to Diversified Work Styles”.

Viewpoint Viewpoint

• Analyze career change and job satisfaction–how

to make work more rewarding after job switch-in

order to create an environment that allows

everyone to choose the work style that suits

them best though career change, regardless of

their age, in an era of 100-year life

• Analyze ways to encourage employees to take

more opportunities for self-development

voluntarily since personal development is the

key to enabling people with diverse

backgrounds, including those opting for working

styles not bound by traditional employment

relationships, to develop their career on their

own initiative

• Challenges: providing employees with

opportunities for recurrent education, or lifelong

learning, to acquire skills and knowledge needed

for their jobs and promoting the use of such

opportunities

Viewpoint

5

6968

55

5250

45

20

40

60

80

フランスイタリアドイツ英国米国日本

(Labour productivity of companies with 250 or more employees = 100)

OECD average

Labor productivity gap between large and

small companies (International comparison)

U.K.Italy JapanFrance Germany U.S.A.

Part II: Chapter 1: Labor Productivity, Vocational Ability Development and Progress Toward

Diversified Work Styles ― Trends in Labour Productivity in Japan ―

Japan, just like other G7 countries, has experienced slow labor productivity growth (real) in recent years.

Compared with other countries, there is a large gap in labour productivity (real) between companies in different sizes in Japan. By industry,while labour productivity is higher at large companies in the manufacturing industry, it is greater at small and medium-sized companies in thehotel and restaurant industries.

Source: Prepared based on OECD.stat (left figure); “Economic Survey Japan 2017”, OECD (middle figure); and “Ministry of Economy, Trade and Industry Basic Survey of Japanese Business Structure and Activities”, METI (right figure)

(Notes) 1) For the labour input, which is the denominator of labour productivity (real), the number of man-hours (calculated by multiplying working hours by the number of workers) based on the number of workers calculated by converting to regular employees is used for the left figure, the number of workers for the middle figure, and the number of workers calculated by converting to regular employees for the right figure.

2) In the left figure, the rate of increase/decrease in labour productivity (real) calculated by converting to purchasing power parity indicates the average value of the values in single years for the respective periods in each country.

3) In the middle figure, labour productivity of companies with 20-49 employees indicates the value calculated by setting that of companies with 250 or more employees to 100. The figures indicate the values of 2013.4) In the right figure, labour productivity is calculated by dividing the “amount of value added” by the “number of employees calculated by converting to regular employees”, and the amount of value added is the total

of “operating profit”, “depreciation cost”, “total amount of salaries”, “welfare cost”, “rent on movables and real estate”, and “taxes and dues”. In addition, the figures indicate the values of 2016.

-0.5

0

0.5

1.0

1.5

2.0

2.5

3.0

1996-2000 2001-2005 2006-2010 2011-2016

(Rate of increase/decrease, %)

U.S.A.

Japan

Germany

Canada

France

Italy U.K.

Rate of increase/decrease in labour

productivity (real)

6

1,412

1,019

1,582

965

461

568

0

600

1,200

1,800

1000人

以上

300人未満

1000人

以上

300人未満

1000人

以上

300人未満

全企業製造業宿泊,飲食サービ

ス業

(10,000 yen)

Labor productivity gap between large

and small companies (By industry)Less th

an

300 p

ers

ons

1000 o

r

more

pers

ons

Less th

an

300 p

ers

ons

1000 o

r

more

pers

ons

Less th

an

300 p

ers

ons

1000 o

r

more

pers

ons

All companies Manufacturing

industries

Hotel and

restaurant

industries

Labour productivity of

companies with 20-49

employees

2.08

1.78

1.20

1.09 1.06

0.10

0

0.5

1.0

1.5

2.0

2.5

U.S.A. France Germany Italy U.K. Japan

1995-1999 2000-2004

2005-2009 2010-2014

(%)

― International Comparison : the Ratio of Costs of Vocational Ability Development

Provided by Companies to GDP ―

As a percentage of GDP, costs of employee vocational ability development provided by companies are

shrinking in Japan.

Source: Prepared based on “System of National Accounts”, Cabinet Office; “JIP Database”, Research Institutes of Economy, Trade and Industry; and INTAN-Invest database

(Note) The figure shows 5-year average transition of the percentage of vocational ability development costs in real GDP. Vocational ability development costs here refer to the estimated values of the

amounts of OFF-JT indicating internal and external training costs, etc., and do not include costs required for OJT.

International comparison: the ratio of costs of vocational ability development to GDP

7

42.3

51.1

39.4

45.6

38.9

21.723.0

21.2

30.8

17.2

0

10

20

30

40

50

60

All scales/allindustries

Manufacturingindustries

Non-manufacturingindustries

300 or more persons Less than 300persons

Companies with labourshortage

Companies with sufficientlabour or labour excess

(“Strengthen” minus “No change/reduce”, % points)

Outlook for human resource development in 5 years at companies

facing labor shortages and firms having sufficient manpower

― Costs of Vocational Ability Development and Outlook

for Human Resource Development ―

Corporate investment in vocational ability development kept falling between 2010 and 2014, but started rising in 2015.

Many companies, especially those facing serious labor shortages, are likely to start stepping up efforts on human resourcedevelopment.

736

545

400

500

600

700

800

2010 11 12 13 14 15 16 17

(10,000 yen)

Corporate investment in vocational ability

development (3-year backward moving average)

Human resources development

costs

(Average amount per company)

(Year)

Source: Prepared based on “Basic Survey of Human Resources Development”, MHLW (left figure); and “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training (right figure)

(Notes) 1) The left figure shows, as vocational ability development costs borne by each company, the 3-year backward moving average of transitions of the total amount of OFF-JT costs and costs for supporting self-development.

2) The right figure shows the percentage of companies intending to strengthen human resource development in the next 5 years and the percentage of companies intending to make no change or reduce, covering companies with an insufficiency of labour shortage for both regular employees and non-regular employees at present and companies with sufficient labour or labour excess for both regular employees and non-regular employees.

Turned to an

increasing trend

8

72.1 73.5

64.7

75.8 74.472.0

32.8

49.5

21.5

0

10

20

30

40

50

60

70

80

90

全規模

・全産業

グローバルな

経済活動・


活動を重視

する企業

グローバルな

経済活動・


活動を重視

しない企業等

Elderly

employees

(“Motivation for future recruitment increased” minus

“Motivation for future recruitment decreased”, % points)

Female employeesHighly professional foreign

national employees

All scales/

all industries

Companies that place

importance on global

economic activities/

innovation activities

Companies that do not

place importance on

global economic activities/

innovation activities, etc.

48.9

64.1

34.6

63.8

77.8

45.0

0

10

20

30

40

50

60

70

80

90

全規模

・全産業

グローバルな

経済活動・


活動を重視

する企業

グローバルな

経済活動・


活動を重視

しない企業等

(“Diversification progressed (will progress)” minus

“Uniformization progressed (will progress”, % points)

Comparison between 5

years ago and presentProspects for next 5

years

All scales/

all industries





Companies that do not

place importance on

global economic activities/

innovation activities, etc.

― Diversity in Workforce Within the Company and Future Prospects ―

Source: Prepared based on “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training

(Notes) 1) The bar chart in the left figure shows the difference in percentages between companies considering that diversification, including sex, age, nationality, employment form, and type of

occupation, etc., of internal human resources progressed (will progress) and companies considering that uniformization progressed (will progress).

2) The bar chart in the right figure shows, of companies with progressed diversification of internal human resources, the difference in percentages between companies with increased

motivation to hire diversified human resources in the next 5 years and companies with decreased motivation.

Diversity in workforce within the company

and future prospects

Prospects for manpower in 5 years at companies

having an increasingly diverse workforce

9

The workforce is more diverse today than five years ago, or in 2013, at companies placing importance on global economicactivities and innovation. And the workplace is expected to become even more diverse as companies hire more women andhighly-skilled foreign professionals.

― Companies’ Views on Human Resource Management and

Vocational Ability Development of Employees ―

The majority of companies place importance on developing generalists/internal human resources, but their views on human resourcemanagement vary from company to company

Companies that place importance on developing generalists/internal human resources believe that they need to step up efforts to help theiremployees develop vocational abilities.

Among such companies, those emphasizing global economic activities and innovation think that having specialists on staff will becomeincreasingly important in the future.

39.8%

33.2%

15.9%

11.0%

Place importance on developing generalists/ internal human resources

Place importance on developing specialists/external human resources

Place importance on hiring specialists/ external human resources

Place importance on hiring generalists/ external human resources

74.575.9

60.7 59.8

0

20

40

60

80

100

300人未満 300人以上

教育訓練の受講について、

企業が積極的に支援を実施すべき

(%)

Place importance on

developing

generalists/internal

human resources

Companies’ views on vocational ability development of employees

Place importance on

hiring specialists/external

human resources

Companies should actively provide support for

participating in education and training courses

Less than 300 persons 300 or more persons

85.6

77.7

88.9

14.4

22.3

11.1

0

20

40

60

80

100

規模計グローバル

な経済活動・


活動を重視

する企業

グローバル

な経済活動・


活動を重視

しない企業等

In 5 years, the role of generalists who

can handle various tasks will become

more important in the company.

In 5 years, the role of

specialists in the company

will become more important.

(%)

Companies placing importance on developing generalists/internal human resources in 5 years

Companies’ views on human resource

management

Place importance on generalists

Place importance on specialists

Place importance

on internal

human resources

Place importance

on external

human resources

10

All scales/

all industries


(Notes) 1) The middle figure summarizes companies’ attitudes toward education/training by current human resource management policy.

2) The right figure shows, of companies that place importance on developing generalists/internal human resources, the percentage of those considering that the importance of

generalists/specialists will increase in the next 5 years.





Companies that do

not place importance

on global economic

activities/innovation

activities, etc.

50.3

35.6

16.6

61.7

29.9

20.6

66.5

22.2

29.3

0

10

20

30

40

50

60

70

専門分野の高度な

知識やスキルを

持つ人が欲しいから

高度とか専門とか

ではなくてよいので

仕事経験が豊富

な人が欲しいから

高度なマネジメント

能力、豊富なマネジ

メントの経験がある

人が欲しいから

300人未満

300～999人

1,000人以上

(%)

Want to

hire

hum

an re

sourc

es

with

advanced

know

ledge/s

kills

in

specia

lized fie

lds

Want to

hire

hum

an re

sourc

es

with

abundance o

f w

ork

experie

nce

that is

not

necessarily

in

advanced o

r specia

lized fie

lds

Want to

hire

hum

an

resourc

es w

ith

advanced

managem

ent s

kills

and a

bundance o

f m

anagem

ent

experie

nce

Less than 300 persons

300-999 persons

1,000 or more persons

― Mid-career Recruiting and Future Prospects ―

More business establishments, especially large companies, hire mid-career workers than five years ago.

Large companies are seeking to hire mid-career workers with great management and other skills on full-time contracts, while small andmedium-sized companies are hiring full-time permanent mid-career staff who have considerable work experience. Both large andsmaller companies are expected to recruit more workers in mid-career.

Source: Prepared based on “Survey on Labour Economy Trend”, MHLW (left figure); and “Survey on Diversified Recruitment by Companies” (2017), The Japan Institute for Labour Policy and Training (middle figure and right figure)

(Note) “Regular employee, etc.” in the left figure refers to those employed without a definite period or those employed by concluding employment contracts for the period of at least one year, excluding part-time workers.

8.68.2

6.2

13.1

0

5

10

15

従業員規模計

300

人未満

300

～999

人

1,000

人以上

(“Will increase” minus “Will reduce”, % points)

Companies’ purpose of recruiting

mid-career employees

Future plan: share of midcareer full-time

workers in the total full-time permanent workers

at the company

28 28

26

42

3638

0

5

10

15

20

25

30

35

40

45

全規模計 30～ 99人 1,000人以上

2018

(First quarter)2013

(First quarter)

Percentage of establishments that have

hired mid-career full-time permanent

workers, etc.(%)

11

30-99

workers

Companies

of all scales

Co

mp

an

ies

of a

ll sca

les

1,000 or more

persons

Le

ss th

an

30

0 p

ers

on

s

30

0-9

99

pe

rso

ns

1,0

00

or

mo

re p

ers

ons

Source: Prepared based on “Basic Survey of Human Resources Development”, MHLW (left figure); “Ministry of Economy, Trade and Industry Basic Survey of Japanese Business Structure and Activities”, METI (left figure); and

“Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training (middle figure and right figure)

(Note) “Marginal effect” in the left figure indicates the degree of effect of the given explanatory variable on the explained variable. For example, it is shown that companies that “spent OFF-JT costs” have the effect of improving,

when compared to other companies, labour productivity by 0.13 (=13%) and sales by 0.17 (=17%) in the following year. In addition, the effects of implementing vocational ability development on labour productivity and

sales amount in the following year were estimated using panel data created by linking individual data of the “Basic Survey of Human Resources Development” and the “Ministry of Economy, Trade and Industry Basic

Survey of Japanese Business Structure and Activities”.

Part II Chapter 2: Challenges: Human Resource Development that Varies According to

Diversified Work Styles and the Changing Business Environment ― Relationship between Vocational Ability Development and Companies’ Performance/Workers’ Motivation ―

Labor productivity tends to rise in the following year at companies that have invested in off-the-job training and employees self-development.

Many companies cite maintaining/improving labour productivity and employee motivation, etc. as the purpose of human resource development.

In companies actively working on human resource development, workers tend to get much motivated than those in other firms.

13.9

-22.5

-30

-20

-10

0

10

20

Workers feeling thatcompanies became

active in skillsdevelopment

Workers feeling thatcompanies became

inactive in skillsdevelopment

(“Increased” minus “Decreased”, % points)

Diffusion index (DI) of employee motivation to

work by companies’ view on vocational ability

0.13

0.21

0.170.19

0

0.1

0.2

0.3

Spent OFF-JT costs Spent self-developmentsupport costs

Labour productivity in the following year

Sales in the following year

(Marginal effect)

① Improve existing employees’ skills to a higher level to improve labour productivity② Maintain/improve employees’ motivation③ Develop human resources that will be required in the future in consideration of

business development in the next several years④ Train existing employees to acquire skills necessary for carrying out present work⑤ Develop human resources that will be required in the future in anticipation of

technological innovations in the next several years

Effects of corporate investment in vocational ability

development on business performance in the

following year

81.9

63.060.9

38.5

26.3

① ② ③ ④ ⑤

15

25

35

45

55

65

75

85

95

Companies’ purpose of human resource

development

(%)

12

― Efforts for OJT to Lead to Higher Workplace Productivity, etc. ―

Many companies making greater efforts for OJT recognize that OJT is effective and efficient, contributing to improvement inworkplace productivity .

Efforts for OJT such as assigning employees more challenging tasks according to their ability may lead to higher workplaceproductivity, etc.

Source: Prepared based on “Survey on Current Status and Issues of Human Resource Development and Vocational Ability Development” (2017), The Japan Institute for Labour Policy and Training

(Notes) 1) “Companies with a relatively large number” in the left figure refers to companies that implement at least six of 16 OJT related efforts, such as “Assign advanced work in a stepwise manner”

and “Provide consultation and advice on work”, etc., and “Companies with a relatively small number” refers to companies that implement less than six efforts.

2) The right figure shows the top five OJT related efforts with the largest gap in the implementation rate between companies recognizing that human resource development is effective in

improving productivity at the workplace and OJT is going well and companies recognizing that human resource development is not effective in improving productivity at the workplace and

OJT is not going well.

15.014.1 13.8

7.97.3

0

5

10

15

20

段階的に高度

な仕事を割り

振っている

仕事について

相談に乗ったり、

助言している

仕事の幅を

広げている

仕事のやり方を

実際に見せている

会社の理念や

創業者の考え方

を理解させる

Assig

n a

dva

nce

d

wo

rk in

a

ste

pw

ise

ma

nn

er

Pro

vid

e

co

nsu

ltatio

n a

nd

ad

vic

e o

n w

ork

Exp

an

d ro

le in

the

wo

rkp

lace

Sh

ow

ho

w to

wo

rk in

pra

ctic

e

Fa

cilita

te

un

de

rsta

nd

ing

of

the

co

mp

an

y’s

prin

cip

le a

nd

the

fou

nd

er’s

ph

iloso

ph

y

Efforts for OJT and corporate perception of effectiveness of OJT

in improvement in workplace productivity, etc.

74.6

59.2

0

20

40

60

80

100

OJTに係る取組の

実施個数が

相対的に多い企業

OJTに係る取組の

実施個数が

相対的に少ない企業

Companies making

greater efforts for OJT

Percentage of companies recognizing that human

resource development leads to improvement in

workplace productivity, etc.(%)

Companies making

insufficient efforts for

OJT

(“Effective” minus “Not effective”, % points)

13

10.210.1

8.9

7.46.5 6.4

5.75.3

3.9

2.3

1.2

14.1

12.1

13.312.6

9.1 9.3

12.1

9.99.4

10.3

7.0

13.3

11.4

13.0 12.7

9.08.8

11.9

8.88.9

9.8

6.7

0

2

4

6

8

10

12

14

16

指導役や教育係の配置

（メンター制度等）

本人負担の社外教育に対する

支援・配慮

企業としての

人材育成方針・計画の策定

転勤

（事業所間の移動）

他企業との人材交流

（出向等）

社内資格・技能評価制度の

創設による動機づけ

配置転換

(

事業所内の移動)

定期的な面談

（個別評価・考課）

表彰による動機づけ

企業が費用を負担する社外教育

目標管理制度による動機づけ

Gap in the

implementation rate

of efforts made for

female employees

― Human Resource Management to Allow All Types of Employees

to Demonstrate Their Abilities ―

There are gaps in vocational ability development opportunities for female and elderly workers. Those gaps are found in between companies in which all

types of employees can fully demonstrate their abilities and those facing challenges to overcome. The disparities are larger in each development

opportunity for female and elderly employees than one for the entire workforce.

Japanese companies are lagging behind on efforts to invest in educational programs provided outside the company and enhance employees motivation

through goal settings for female and elderly workers. Thus, those companies need to step up such efforts.

Gap in the implementation rate of human resource management related to vocational ability

development by status of demonstration of abilities of diversified human resources(“Abilities of diversified human resources are fully demonstrated” minus “Issues exist in demonstrating abilities”, % points)

Gap in the

implementation rate

of efforts made for

elderly employeesOverall

Source: Prepared based on “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training 14

Pla

cem

ent o

f coaches a

nd

teachers

(mento

r syste

m, e

tc.)

Support/c

onsid

era

tion fo

r

indiv

idual p

aym

ents

for

exte

rnal tra

inin

g

Form

ula

tion o

f hum

an re

sourc

e

develo

pm

ent p

olic

y/p

lan o

f the

com

pany

Job tra

nsfe

r (transfe

r betw

een

esta

blis

hm

ents

)

Pers

onnel e

xchange w

ith o

ther

com

panie

s (te

mpora

ry tra

nsfe

r,

etc

.)

Incre

asin

g m

otiv

atio

n b

y

cre

atin

g in

tern

al

qualific

atio

ns/s

kills

evalu

atio

n

syste

ms

Reassig

nm

ent (tra

nsfe

r with

in

the e

sta

blis

hm

ent)

Schedule

d in

terv

iew

(indiv

idual

evalu

atio

n/p

erfo

rmance

evalu

atio

n)

Incre

asin

g m

otiv

atio

n th

rough

aw

ard

pro

gra

ms

Exte

rnal e

ducatio

n fo

r whic

h

com

panie

s b

ear e

xpenses

Incre

asin

g m

otiv

atio

n th

rough

the M

anagem

ent b

y Obje

ctiv

es

syste

m

89.2

73.071.0 70.2

66.5

60

70

80

90

100

① ② ③ ④ ⑤

(%)

53.651.1

44.042.9 42.8

30

40

50

60

70

① ② ③ ④ ⑤

(%)

62.0

58.5

50.748.8

40.7

30

40

50

60

70

① ② ③ ④ ⑤

― Human Resource Development to Meet Diversified Work Styles,

and Future Efforts to Achieve the Goal ―


(Notes) 1) The left figure shows issues that companies with issues in demonstration of abilities of diversified human resources have in human resource development concerning so-called regular employees. Multiple answers

allowed.

2) The middle figure shows efforts planned for implementation by companies with issues in demonstration of abilities of diversified human resources planning to strengthen human resource development. Multiple

answers allowed.

3) The right figure shows companies’ support that regular employees working for companies with issues in demonstration of abilities of diversified human resources consider important for actively promoting vocational

ability development. Answered by selecting top 5 out of 13 items.

Some companies struggle with creating a workplace where different types of employees can demonstrate their abilities. But they recognize that they need to spendmore time to cultivate human resources and that they have to deal with employees in leadership positions who lack the ability to nurture human resources.

In such companies, both labour and management focus on helping those in leadership positions improve their ability to nurture human resources and results of theirefforts to develop employees’ vocational abilities. The aim is to promote better human resource development practice.

① Employees are busy in their operations and cannot allocate time for

human resource development

② Ability to develop human resources and awareness for guidance is

lacking in superiors, etc.

③ Employees’ motivation to receive human resource development is low

④ A system that enables, when employees are absent to engage in

vocational ability development, others to take on their operations

during their absence has not been established

⑤ Atmosphere to actively implement human resource development is

lacking within the company

① Improve abilities of superiors, etc. to develop human resources

and awareness for guidance

② Highly rate superiors who are active in developing their

subordinates in the performance evaluation (including wage raise,

promotion, etc.)

③ Increase employees’ motivation toward vocational ability

development by encouragement from top management, etc.

④ Highly rate the status of employees’ vocational ability development

efforts in the performance evaluation (including wage raise,

promotion, etc.)

⑤ Expand budget for human resource development

① Highly rate the status of employees’ vocational ability development

efforts in the performance evaluation (including wage raise,

promotion, etc.)

② Improve ability of superiors, etc. to develop human resources and

awareness for guidance

③ Increase employees’ motivation toward vocational ability

development by encouragement from top management, etc.

④ Establish a system that enables, when persons in charge are

absent, to engage in vocational ability development, others to take

on their operations during their absence

⑤ Give consideration to working hours

Issues concerning human resource development and efforts planned for implementation in the future, etc. of

companies with issues in demonstration of abilities of diversified human resources

Issues that companies have in human

resource development concerning so-called

regular employees(%)

Matters planned for implementation in the

future by companies planning to strengthen

human resource development

Items that regular employees consider

important for Companies to support

15

23.1

37.0

30.134.0

53.9

42.5

0

20

40

60

Labour productivity Sales Number of regular employees


Companies expanding their

business overseasCompanies not expanding

their business overseas

― Status of Global Expansion of Japanese Companies and Its Relationship with

Labour Productivity Growth and Vocational Abilities, etc. ―

Source: Prepared based on “Basic Survey of Overseas Business Activities”, METI (upper left figure); “Survey on the Japanese Nationals Overseas”, MFA (upper left figure); “Survey on Progress in

Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training (upper right figure); and “Survey on Actual Situation of Job

Transfers in Companies” (2017), same (lower left figure and lower right figure)

(Note) The upper right figure shows the diffusion index (DI) of change in labour productivity, etc. from 5 years ago to present.

Overseas expansion of Japanese companies is steadily increasing, and companies expanding their business overseas are therebyimproving labour productivity, etc. while increasing the number of regular employees in Japan.

From the point of view of improved vocational abilities and satisfaction with job transfer experience, overseas job transfer is more highlyvalued than domestic job transfer.

13.2

25.0

306

489

0

200

400

600

0

10

20

30

40

1997 99 2001 03 05 07 09 11 13 15 16

(1,000 companies) (1,000 persons)

Number of Japanese workers

overseas (right axis)

Number of overseas

subsidiary companies

(FY)

Number of overseas subsidiary companies and

number of Japanese workers overseas

89.7

73.3

50

60

70

80

90

100

海外転勤国内転勤

(“Improved” minus “Reduced”, % points)

Overseas job transfer Domestic job transfer

79.1

60.0

50

60

70

80

90

100

海外転勤国内転勤

(“Satisfied” minus “Unsatisfied”, % points)

Overseas job transfer Domestic job transfer

Diffusion index (DI) of change in vocational abilities after job transfer

Relationship between overseas business

expansion and labour productivity, etc.

Diffusion index (DI) of satisfaction with job transfer experience

16

― Impacts, etc. of Advancement in ICT on Work Styles ―

Source: Prepared based on “Science, Technology and Industry Scoreboard 2017”, OECD (upper left figure and upper right figure); “Survey on Status of Responding to Innovations” (2017), The Japan Institute for Labour Policy and Training (lower left figure); and “Survey on How to Work for Responding to Innovations” (2017), same (lower right figure)

(Notes) 1) “Intensity of ICT operations” indicates the value calculated by OECD based on the index of the use of the Internet, etc. using PIAAC, and “percentage of workers engaged in non-routine operations” indicates the value calculated by OECD that is the percentage of workers engaged in occupations for which the intensity of routine operations is lower than the median obtained by listing occupations in order according to the intensity of routine operations.

Both in the manufacturing and services industries, the more companies are ICT intensive, the higher the share of workers engaged innon-routine tasks.

As the use of AI becomes common, both labour and management value qualities such as willingness to take on new challenges, etc.and communication skills.

15

25

35

45

55

65

75

30 35 40 45 50 55 60 65 70


y=1.32x - 25.23

(4.71)

R² = 0.4218

(Intensity of ICT operations)

(Perc

enta

ge o

f work

ers

engaged

in n

on-ro

utin

e o

pera

tions)

(%)

Japan

ItalyGermany

Canada

U.S.A.

U.K.France

15

25

35

45

55

65

75

30 35 40 45 50 55 60 65 70

(Intensity of ICT operations)

(Perc

enta

ge o

f work

ers

engaged

in n

on-ro

utin

e o

pera

tions)

Services industry

y=0.97x - 7.34

(2.08)

R² = 0.1032

(%)

Japan

France

Italy

U.S.A.

Canada

U.K.

Germany

63.8 61.954.7

45.7

21.0

0

10

20

30

40

50

60

70

80

① ② ③ ④ ⑤

(%)

51.761.4

48.3

28.5

16.6

0

10

20

30

40

50

60

70

80

① ② ③ ④ ⑤

(%)

① Human qualities such as willingness to take on new challenges, self-motivation, ability to take action, and insight, etc.② Human relations skills such as communication skills and coaching, etc. ③ Planning/expressive abilities and creativity④ Operational execution capabilities such as ability to collect information, ability to solve problems, and logical thinking⑤ Basic knowledge such as language skills, understanding, and expression

Skills that companies consider important Skills that regular employees consider important

Relationship between the intensity of ICT use and the share of workers engaged in non-routine tasks

Skills considered important in the age in which AI is commonly utilized

17

10.7 10.5 10.4 10.39.6

9.1

15.5

12.3

13.312.9

13.4

12.1

14.6

12.3

13.1 12.6 12.6

11.8

5

10

15

20

Expand o

pportu

nitie

s fo

r skills

develo

pm

ent

Elim

ina

te u

nre

aso

na

ble

dis

paritie

s in

treatm

ent

betw

een e

mplo

yees

(betw

een m

ale

s a

nd fe

male

s,

betw

een re

gula

r and n

on-

reg

ula

r em

plo

ye

es, e

tc.)

Pla

ce

me

nt/re

assig

nm

en

t accord

ing to

indiv

idual

wis

hes

Support fo

r bala

ncin

g w

ork

and d

isease tre

atm

ent

Support fo

r bala

ncin

g w

ork

and n

urs

ing c

are

Support fo

r those w

ho le

ft th

eir jo

bs o

r took a

leave o

f absence d

ue to

child

care

/ nurs

ing c

are

/ dis

ease

treatm

ent, e

tc. to

retu

rn to

w

ork

Gap in the

implementation rate of

employment

management of female

employees

Part II Chapter 3: Promote Better Employment Management that Varies According to

Diversified Working Styles ― How Job Performance of Various Employees with Different Backgrounds

Affects Labor Productivity and Human Resource Management, etc. ―

Businesses need to provide more opportunities for vocational ability development to employees and work on eliminating unreasonabledisparities in working condition between employees (between men and women, between regular and non-regular workers, etc.), etc. in orderto create a workplace where employees from diverse backgrounds can demonstrate their abilities and improve labor productivity.

Companies should improve vocational ability development programs and help workers balance work and caregiving. They also need to takesteps to help employees return to work, or assign and reassign them, especially female and elderly workers, to meet their wishes.


(Note) The left figure shows the diffusion index (DI) of changes in sales, labour productivity, number of regular employees, and number of non-regular employees from 5 years ago to present.

42.6

36.1 35.4

27.7

34.3

18.4

28.4

23.0

0

10

20

30

40

50

売上高

労働生産性

正社員数

非正社員数

Companies in which abilities of diversified human resources are fully demonstrated

Companies with issues regarding demonstration of abilities of

diversified human resources

Sale

s

Labour

pro

ductiv

ity

Num

ber o

f

regula

r

em

plo

yees

Num

ber o

f

non-re

gula

r

em

plo

yees


How job performance of various

employees with different backgrounds

affects sales and labor productivity, etc.

Gap in employment management of regular employees between “companies in which

abilities of diversified human resources are fully demonstrated” and “companies with issues

in demonstration of abilities”

(“Abilities of diversified human resources are fully demonstrated” minus “Issues exist in demonstrating abilities”, % points)

Gap in the

implementation rate of

employment

management of elderly

employees

18

0

10

20

30

40

50

60

70

80

余暇時間を

大切にしたい

仕事と介護の両立

職務を限定して

専門性を高めたい

仕事と育児の両立

職務を限定した方が今後の

キャリア設計をしやすい

Males

Females

(%)

Want to

enjo

y leis

ure

time

Bala

ncin

g w

ork

and n

urs

ing

care

Want to

impro

ve e

xpertis

e

by lim

iting d

utie

s

Bala

ncin

g w

ork

and c

hild

care

Lim

iting d

utie

s m

akes fu

ture

care

er d

evelo

pm

ent e

asie

r

54.6

43.0

28.9

23.5

13.6

10.3 7.9

6.6

1.3

0

10

20

30

40

50

60

仕事と育児・介護・病気治療

の両立を支援するため

人材の特性に合わせた

多様な雇用管理を行うため

優秀な人材を採用するため

職務を限定することで、

専門性や生産性の向上

をより促すため

非正社員から正社員への

転換を円滑化させるため

人件費の節約のため

従業員や労働組合等から

の要望があった

仕事の繁閑など業務量

の変化に対応するため

同業他社が導入しているため

(%)

To

su

pp

ort b

ala

ncin

g w

ork

an

d

ch

ild c

are

/nu

rsin

g c

are

/dis

ea

se

trea

tme

nt

To

hire

hu

ma

n re

so

urc

es w

ith

exce

llen

t qu

alific

atio

ns

To

pro

mo

te im

pro

ve

me

nt o

f e

xp

ertis

e a

nd

pro

du

ctiv

ity b

y

limitin

g d

utie

s

To

sa

ve

lab

ou

r co

sts

Be

ca

use

it is re

qu

este

d b

y

em

plo

ye

es a

nd

/or la

bo

ur u

nio

ns,

etc

.

Be

ca

use

it is in

trod

uce

d in

oth

er

co

mp

an

ies in

the

sa

me

bu

sin

ess

To

resp

on

d to

ch

an

ge

s in

wo

rk

vo

lum

es, in

clu

din

g b

usin

ess

fluctu

atio

n, e

tc.

To

en

ab

le s

mo

oth

er c

on

ve

rsio

n

from

no

n-re

gu

lar e

mp

loye

e to

reg

ula

r em

plo

ye

e

To

imp

lem

en

t va

riou

s e

mp

loym

en

t m

an

ag

em

en

t sch

em

es a

cco

rdin

g to

ind

ivid

ua

l ch

ara

cte

ristic

s o

f hu

ma

n

reso

urc

es

― Status of Companies Embracing a Limited Regular Employee System

and Intentions of Companies/Workers ―

Nearly 50% of major companies have introduced the limited regular employee system, or a gentei shain labor contract.

Companies making use of the limited regular employee contracts say they have embraced such an employment style in order to helpemployees balance work and child-rearing/caregiving/disease treatment and promote a diverse human resource management. In fact,approximately 50% of female workers say they want to work as a limited regular employee.

Source: Prepared based on “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training(Notes) 1) The right figure shows the answers to the question asking so-called regular employees who may wish to work as limited regular employees about the reason for wishing to do so.

2) “Limited regular employee” refers to many types of regular employee who have concluded indefinite-term labour contracts, just like regular personnel/employees, but whose work location, duties, working hours, etc. are limited.

15.5

24.2

46.8

0

10

20

30

40

50

60

300人未満 300～

999人

1,000人

以上

(%)

Less than

300 persons

300-999

persons

1,000 or more

persons

Reasons that companies introduced the

work style of limited regular employee

Percentage of companies

with limited regular employees

Reasons for wishing to

work as a limited regular

employee

Intention for the work

style of limited regular

employee

23.0

47.1

0

25

50

５年先を見据えた際、

限定正社員を希望する

可能性がある

(%)

Males

Females

19

May request to

become a limited

regular employee

in the next 5 years

0.9

11.9

2.9

0

5

10

15

人材の採用が

しやすくなった

社員の定着率

が高まった

社員のワーク

・ライフ・バラ

ンスが高まった

(“Consider effective” minus “Consider not effective”, % points)

Hiring human

resources

became easier

The retention

rate of

employees rose

Employees’

work-life balance

improved

80.3

19.7

66.3

33.7

0

20

40

60

80

100

不満なし不満あり不満なし不満あり

いわゆる正社員限定正社員

(%)

Not dissatisfied Dissatisfied Not dissatisfied Dissatisfied

So-called regular employees Limited regular employees

56.6

32.1 30.823.7

19.8

0

20

40

60

80

合理的な賃金

差が設けられ

ていない

労働時間と

比較して、

業務量が

過大になった

合理的な昇進

スピードの差

が設けられて

いない

限定正社員への

仕事の割振り・

調整が難しく

なった

計画的な休暇

が取得しづらく

なった

(%)

57.2

37.233.8

27.1

15.6

0

20

40

60

80

不合理な賃金差

がある

共有がしっかり

となされない

情報が多い

不合理な昇進

スピードの差

がある

労働時間と比較

して、業務量が

過大になった

短時間労働しか

できない中、

締切までに十分

な余裕のない

仕事発注が多い

(%)

― Effects of Introducing the Limited Regular Employee System and Employee Dissatisfaction about the

Difference between Limited Regular Workers and so-called Regular Employees―

Introduction of the limited regular employee system can boost the retention rate of the employees. But both regular and limited regular employees aredissatisfied with work styles of others : many of them complain about a wage system.

For this reason, when introducing the limited regular employee system, labour and management should review the way employees perform their jobduties and discuss differences in working condition, including wages, etc. so that employees on both types of employment contracts can accept thedifferences.

Impacts of the introduction of the limited regular employee system on the company

State of dissatisfaction about the difference between limited regular workers and regular employees

Matters that so-called regular employees are dissatisfied with in light of the working conditions of limited regular

employees at the workplaces, etc.

20

Matters that limited regular employees are dissatisfied with in light of the working conditions of so-called regular employees

at the workplaces, etc.

Th

ere

is n

o

esta

blis

hed

reasonable

diffe

rence in

wages

Work

volu

me

incre

ased

com

pare

d to

work

ing h

ours

Th

ere

is n

o

esta

blis

hed

reasonable

diffe

rence in

pro

motio

n s

peed

Assig

nin

g/

adju

stin

g w

ork

to

limite

d re

gula

r

em

plo

yees is

diffic

ult

Ta

kin

g p

lanned

leaves is

diffic

ult

Th

ere

is a

n

un

rea

so

na

ble

diffe

ren

ce

in

wa

ge

s

Much in

form

atio

n

is n

ot p

roperly

share

d

Th

ere

is a

n

unre

asonable

diffe

rence in

pro

motio

n s

peed

Work

volu

me

incre

ased w

hen

com

pare

d to

work

ing h

ours

Th

ere

are

many

ord

ers

with

insuffic

ient m

arg

in

for d

eadlin

es w

hile

work

ing h

ours

are

limite

d


(Note) The lower left figure and the lower right figure show the matters that those who answered “dissatisfied” when so-called regular employees and limited regular employees compared work

styles of each other are dissatisfied with. Multiple answers allowed.

12.0

19.2

0

5

10

15

20

25

５年前と現在現在と５年先


From 5 years ago

to presentFrom present

to 5 years from now

0

10

20

30

40

50

60

70

売上高労働生産性


Have not hired/no plan to hire highly skilled

professionals

Highly professional human resources increased from 5 years ago

No change in the number of highly professional human resources from 5 years ago

Sales Labour productivity


(Notes) 1) “Highly professional human resources” refers to human resources who have completed master's/doctoral degree programs, etc. and have advanced and specialized technologies, skills,

knowledge, practical experience, and teaching experience, etc. in certain specific fields.

2) In the right figure, “special employment management that takes into consideration characteristics of highly professional human resources” refers to employment management schemes

such as “limiting the content of duties to specific fields”, “proposing wage levels appropriate for capacities/achievements”, and “clarifying the content of duties in writing at the time of

recruitment”, etc.

― The Impact of Highly Skilled Professionals on Labor Productivity ―

It is crucial for companies to take in highly skilled professionals in order to improve corporate performance, including labourproductivity, etc.. To achieve that aim, it is also effective for them to take an special approach to employment managementbased on characteristics of highly skills professionals.

DI of change in employment of highly skilled professionals up to the present and

prospects in the next 5 years

Relationship between change in employment of highly skilled professionals

and sales/labour productivity

36.0

24.9

0

5

10

15

20

25

30

35

40

Separa

tely

imple

ment s

pecia

l em

plo

ym

ent m

anagem

ent

sch

em

e th

at ta

ke

s in

to

consid

era

tion c

hara

cte

ristic

s

of h

ighly

pro

fessio

nal h

um

an

resourc

es

Do n

ot s

epara

tely

take a

ny

specia

l measure

s


DI of change in the number of highly skilled professionals by employment

management policy

21

1.91.8

1.2

1.8

1.10.9

0.6

4.03.7

3.4

2.82.6

2.5

1.6

0

1

2

3

4

5

Info

rmatio

n a

nd

tele

com

mu

nic

atio

ns

Manufa

ctu

ring

Whole

sale

/ reta

il tra

de

Educatio

n/ le

arn

ing

su

pp

ort

Scie

ntific

researc

h/

pro

fessio

nal a

nd

technic

al s

erv

ices

Serv

ices (n

ot

els

ew

here

cla

ssifie

d)

Accom

modatio

ns/

eatin

g a

nd d

rinkin

g

serv

ices

Number of foreign workers in specialized/technical fields

(10,000 persons)

2017

2010

Many h

um

an re

sourc

es

repre

senta

tives

thin

k th

at it is

a

challe

nge th

eir c

om

panie

s fa

ce.

Many h

ighly

skille

d fo

reig

n

pro

fessio

nals

thin

k th

at im

pro

vem

ents

should

be m

ade.

(Descriptions of

difference)

① Environments that enable career development

② Placement/transfer to departments where one’s expertise can be utilized

③ Clarification of work content (Improvement of job descriptions)

④ Various consultation systems, including a mentor system, etc.

⑤ Development of work environments in which people can work in English

⑥ Clarification of criteria for salary raise ⑦ Ease of achieving a work-life balance

⑧ Flexible work styles such as telework, etc.⑨ More efficient operations such as ICT utilization, etc.

Source: Prepared based on “Situation of Notified Foreign National Employment Status”, MHLW (left figure); and “Questionnaire Survey on Matters that Highly Professional Foreign Human Resources

Wish to be Improved” (FY2017 MHLW-commissioned program), Chuugai (right figure)

(Note) The bar chart in the right figure shows, in companies employing highly professional foreign human resources, the difference calculated by subtracting the percentage of personnel managers of

companies who answered that it is an issue from the percentage of highly professional foreign human resources who answered that it should be improved in utilizing/retaining highly

professional foreign human resources.

― Trends in the Number of Highly Skilled Foreign Professionals

and Challenges Employing Such Workers ―

The number of foreign workers in specialized/technical fields is increasing mainly in the following sectors: the information and

communications, manufacturing, and wholesale/retail trade industries.

Highly skilled foreign professionals think that their employers should offer them flexible work arrangements such as teleworking, but

human resources representatives have yet to realize that they need to allow for flexible work styles.

59.7

51.5

42.5

28.5 26.6

16.2 14.2

3.6 1.7

-30

-20

-10

0

10

20

30

40

50

60

70

① ② ③ ④ ⑤ ⑥ ⑦ ⑧ ⑨

Challenges employing or trying to retain

highly skilled foreign professionals

(%) (“Highly skilled foreign professionals” minus “Companies”, % points)

Difference

(“Percentage of highly professional foreign human resources who

answered that it should be improved” minus “Percentage of human

resources representatives who answered that it is an issue”)

Percentage of persons in charge

of personnel affairs who

answered that it is an issue

22

64.0

51.947.5

40.436.5

28.6

6.4

-30

-20

-10

0

10

20

30

40

50

60

70

① ② ③ ④ ⑤ ⑥ ⑦

Methods of developing managers that

those wishing to be promoted to

Difference(“Percentage of those wishing to be promoted to be managers who consider the method important” minus “Percentage of companies implementing the method”)

(%) (“Those wishing to be promoted to managers” minus “Companies”, % points)

58.9

37.5 36.5

29.3

0

10

20

30

40

50

60

70

Work

vo

lum

e is

incre

asin

g

Pre

ssu

re to

ach

ive

resu

lts is

in

cre

asin

g

Re

stric

tion

s a

re b

eco

min

g

mo

re s

eve

re fo

r co

mp

lian

ce

Th

e n

um

be

r of p

ers

on

s a

t the

w

ork

pla

ce

is d

ecre

asin

g

Em

plo

ye

es w

ithin

limite

d

wo

rkin

g h

ou

rs/lo

ca

tion

s a

re

incre

asin

g

Em

plo

ye

es w

ith b

ad

me

nta

l co

nd

ition

s a

re in

cre

asin

g

Fo

reig

n e

mp

loye

es a

re

incre

asin

g

(%)Items that many managers listed

+8.0%

points +5.8%

points

+5.2%

points

2017

2015

2012

Items that are increasingly being listed

2017

61.1

38.9

0

20

40

60

80

管理職に昇進し

たいと思わない

管理職以上

（役員含む）

に昇進したい

(%)

Do n

ot w

ish

to b

e

pro

mo

ted

to m

an

ag

ers

Wis

h to

be

pro

mo

ted

to m

an

ag

ers

or h

igh

er

leve

ls (in

clu

din

g

exe

cu

tive

s)

Source: Prepared based on “Survey on Actual Conditions of Section Managers, etc. of Listed Companies” (2017), SANNO University (left figure); “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training (middle figure and right figure)

(Notes) 1) The values on arrows in “Items that are increasingly being listed” of the left figure indicate the difference in the percentage of managers who listed the item concerned as a change in workplace environments between 2017 and 2012.

2) The bar chart in the right figure shows the difference calculated by subtracting the percentage of those wishing to be promoted to managers who consider the method important from the percentage of companies implementing the method.

― Changes in Workplace Environments that Managers Realize and

Challenges Concerning Promotion of Employees and Management Skills Development ―

Many managers have realized that their work volume has increased and have been feeling an increasing pressure to achieve results sincethey were promoted to the position. And a growing number of those managers also find that more and more employees work within limitedworking hours at fixed locations. Therefore, there are a considerable number of employees who do not want to be promoted to managers.

Those who want to be promoted to managers think that companies should place priority on subsidizing employee self-development when theytry to nurture managers. But few companies recognize the importance of financial assistance.

Wish to be promoted

to managers

① Allow candidates to gain experience in important work such as placing them in

special projects and central departments

② Prioritized reassignment for gaining various experiences

③ Allow candidates to actively acquire knowledge in management practice

④ Actively provide opportunities for personnel exchange with other companies

⑤ Subsidize expenses of self-development with priority

⑥ Allow candidates to participate in selective training with priority

⑦ Allow candidates to gain experience in working abroad with priority

(Regula

r em

plo

yees p

lace

more

importa

nce)

(Com

panie

s p

lace

more

importa

nce)

Recognition gap between those wishing to be promoted to

managers and companies: which method they think important

Changes in workplace environments

that managers feel

23

Source: Prepared based on “Survey on Employment Trends”, MHLW (left figure); and “2015 Survey on Workers Who Changed Jobs”, MHLW (right figure)

(Notes) 1) Shadowed areas in the left figure represent the recession periods.

2) The data of “Full-time worker (indefinite-term employment)” in the left figure is only for 2013 and later years because “Survey on Employment Trends” by MHLW was commenced in 2013.

3) The number of previous career changes includes the career change to the current company.

Part II Chapter 4: Make It Easier for Everyone to Pursue Their Career on

Their Own Initiative ― Career Change and the Labor Market Situation in Japan ―

More and more people in Japan change careers. And as those who have changed jobs get older, the number of times they

had switched careers is rising. Given the fact, people are increasingly likely to consider changing jobs a number of times as

the country is entering an era in which many people will live to 100 years old.

217

246

41 49

38 38

102

126

145

0

50

100

150

200

250

300

350

万

Full-time worker (overall) ⇒ Full-time worker (overall)

Full-time worker (indefinite-term employment)

⇒ Full-time worker (indefinite-term employment)

Part-time worker ⇒ Part-time worker

Full-time worker (overall) ⇒ Part-time worker

Part-time worker ⇒ Full-time worker (overall)

(10,000 persons)

1.5

2.1

3.0

3.4

2.9

1

2

3

4

15～24歳 25～34歳 35～44歳 45～54歳 55歳以上

(Number of previous career changes (total of all employment forms))

Age 15-24 Age 25-34 Age 35-44 Age 45-54 55 or older

Transition of the number of persons who have changed their

careers by employment form after the career change

Number of times career changers

switched jobs in the past

24

― Overall Career Satisfaction among People Who Have Changed Jobs―

Overall career satisfaction is high among people who have changed jobs, mainly those in younger generations.

People exploring new career options tend to look for a new job based on: skills and vocational abilities they gained in thepast, job description, occupational satisfaction and better working conditions. If their new employers provide them witheducation and training programs, that may lead to greater career satisfaction among employees.

Source: Prepared based on “2015 Survey on Workers Who Changed Jobs”, MHLW

(Note) The middle figure summarized the results of up to 3 answers given as reasons for selecting the current company.

40.4

46.3

26.1

17.4 16.5

14.0

53.1

46.2

28.2

19.7

16.5 14.7

0

10

20

30

40

50

60

自分の技能・能力

が活かせるから

仕事の内容・職種

に満足がいくから

労働条件（賃金以外）

がよいから

転勤が少ない、

通勤が便利だから

地元だから

（Ｕターンを含む）

賃金が高いから

正規→正規

非正規→正規

(%)

Ow

n s

kills

/abilitie

s c

an

be u

tilized

Satis

fied w

ith w

ork

conte

nt//ty

pe o

f

occupatio

n

Bette

r work

ing c

onditio

ns

(oth

er th

an w

ages)

Less jo

b tra

nsfe

r, more

convenie

nt c

om

mutin

g

Locate

d a

t my h

om

e

tow

n (in

clu

din

g re

turn

ing

to o

ne’s

hom

e to

wn)

Hig

her w

ages

Regular → Regular

Non-regular → Regular60.7

66.0

58.7

55.2

58.7

48.6

34.0

26.4

31.0 32.631.1

45.9

5.3

7.610.3

12.2

10.1

5.4

0

10

20

30

40

50

60

70

80

15～24歳 25～34歳 35～44歳 45～54歳 55～64歳 65歳～

満足どちらとも言えない不満

(%)

Age

15-24

Age

25-34

Age

35-44

Age

45-54

Age

55-64

65 or

older

Satisfied No opinion Dissatisfied

Career changers’ overall career satisfaction

(regular employees)

Reasons to choose the company to work for

by changes in the employment status

54.0 53.8

52.7

48.3

40

50

60

職務遂行に必要な

能力・知識を付与

する教育訓練

（OFF-JT

）

入職時の

ガイダンス

（OFF-JT

）

計画的なO

JT

実施しなかった

(“Satisfied” minus “Unsatisfied”, % points)E

ducatio

n a

nd

train

ing fo

r acquirin

g

skills

/know

ledge

necessary

for

perfo

rmin

g d

utie

s

(OF

F-J

T)

Guid

ance a

t the tim

e

of e

mplo

ym

ent

(OF

F-J

T)

Schedule

d O

JT

Not im

ple

me

nte

d

Impact of education and training programs for career changers on their overall

satisfaction with career

25

51.0

46.2

44.4

42.1

38.3

32.1

51.9

47.6

45.9

43.4

40.740.0

20

30

40

50

60

30

歳未満

30

～49

歳

50

歳以上

30

歳未満

30

～49

歳

50

歳以上

男性女性

FY2016

FY2013

(%)

Implementation status of self-development (regular employees)

Yo

un

ge

r

tha

n 3

0

50

or

old

er

Yo

un

ge

r

tha

n 3

0

Ag

e

30

-49

50

or

old

er

Ag

e

30

-49

Males Females

26.8

17.4

20.4

3.1

0

10

20

30

40

Change in annual income Satisfaction with work

Implemented self-development Not implemented self-development

(Diffusion index (DI), % points)

“Increased by 10% or more”

minus “Decreased by 10% or more”“Satisfied” minus “Dissatisfied”

Effects of self-development on employees after 2 years (regular employees)

― Self-development at Work and Its Effect ―

Source: Prepared based on “Basic Survey of Human Resources Development”, MHLW (left figure); and “National Employment Situation Panel Survey 2018”, Recruit Works Institute,

Recruit Holdings (right figure)

(Note) The right figure shows various effects in 2017 by the implementation status of self-development in 2015.

Employees, both men and women, are less likely to engage in personal development as they become older.

If employees put their efforts into self-development, that could boost their job satisfaction and have other positive impacts on

them after a certain period of time.

26

― Self-development: Challenges Faced by Employees

and Efforts to Be Made by Companies ―

Employees face challenges when they try self-development such as : scheduling, high costs and balancing with household chores andchildrearing (among female workers).

It is suggested that providing information on education/training institutions, etc. and career consultation services can be an effective wayto promote employees’ self-development.

46.2

23.7

10.6

20.2

15.4 15.3

32.1

22.8

32.4

22.4 22.1

15.2

0

10

20

30

40

50

仕事が忙しく

て自己啓発の

余裕がない

費用が

かかりすぎる

家事・育児

が忙しくて

自己啓発の

余裕がない

どのような

コースが自分

の目指す

キャリアに

適切なのか

わからない

自分の目指す

べきキャリア

がわからない

適当な教育

訓練機関が

見つからない

男性女性

(%)

Males Females0.081

0.079 0.081

0.047

0

0.02

0.04

0.06

0.08

0.10

社内での自主

的な勉強会等

に対する援助

教育訓練機関、

通信教育等に

関する情報提供

キャリア

コンサルティング

受講料などの

金銭的援助

(Threshold effect)

Problems faced by employees failing to put their

efforts into self-development

Support for vocational ability development that can promote

employees’ self-development (regular employees)

27

Too busy with

work to afford

time for self-

development

Costs are

too high

Too busy with

housework/child

care to afford

time for self-

development

Not sure

which courses

are appropriate

for the desired

career

Not sure

which career

to pursue

Cannot find

appropriate

education/

training

institutions

Source: Prepared based on “FY2016 Basic Survey of Human Resources Development”, MHLW

(Note) The right figure shows the threshold effect of a Probit model estimation using the implementation status of self-development by workers as the explained variable. It is statistically significant

at the 5% level for all items. The threshold effect here indicates the degree of effect of the given explanatory variable on the explained variable. For example, establishments implementing

“career consultation” have the effect of improving, when compared to companies not implementing, the implementation status of self-development by 0.081 (=8.1%).

Career

consultation

Provide information

on education/training

institutions and

correspondence

courses, etc.

Assistance for

voluntary study

sessions within the

company

Monetary

assistance for

tuition, etc.

38

42

11 12

412

396

0

20

40

60

80

200

250

300

350

400

450

2010 15

(10,000 persons) (10,000 persons)

(Year)

Self-employed persons

(with no employees)

Self-employed persons working

by utilizing information and

communication equipment

(right axis)

Professionals

(included)

(right axis)

― Career Development Challenges for People Opting for Working Styles

Not Bound by Traditional Employment Relationships [1] ―

The number of self-employed individuals who use telecommunication technologies is rising while the total number of self-

employed persons (with no employees) is declining. Incomes of the both self-employed workers vary.

Source: Prepared based on “Population Census”, MIC (left figure and middle figure); and “2016 Survey on Time Use and Leisure Activities”, MIC (right figure)

(Notes) 1) For “professionals working by utilizing information and communication equipment”, self-employed persons (no employers) deemed to be engaged in occupations of creating deliverables or

providing services by utilizing information and communication equipment were selected using the work content that workers engage in described in the MHLW’s “3rd Discussion Meeting on

Flexible Work Styles document” (“Survey on Ways of Working without being Employed (Web-based Survey)”, JILPT) as a reference, and of which professionals engaged in creating software

and providing consultations, etc. by utilizing information and communication equipment were selected as “professionals working by utilizing information and communication equipment”.

5,240

2,620

0

1,000

2,000

3,000

4,000

5,000

6,000

システムコン

サルタント・

設計者

ソフトウェア

作成者

(Increase from 2010 to 2015, persons)

System

consultant/

designer

Software

creator

The number of self-employed persons by

business operation

Increased major occupations of professionals working by utilizing

information and communication equipment

34.0

38.3

18.1

5.51.9

2.3

16.9

37.5

20.2

14.1

5.06.3

0

10

20

30

40

50

Less th

an

1 m

illion y

en

1 to

2.9

9

millio

n y

en

3 to

4.9

9

millio

n y

en

5 to

6.9

9

millio

n y

en

7 to

8.9

9

millio

n y

en

9 m

illion y

en

or m

ore

(%)

Self-employed persons (with no employees)

Self-employed professionals

working by utilizing information

and communication equipment

Comparison between self-employed persons

(without employees) and self-employed

professionals based on annual income category

28

45.5

40.3

27.7

18.9 18.716.3

10.4 9.97.8 7.6 7.6 7.0

0

10

20

30

40

50

60

収入が不安定、低い

仕事を失った時の失業保険

のようなものがない

仕事が原因で怪我や病気を

した時の労災保険の

ようなものがない

立場が弱い

医療保険や年金などの

社会保障が不十分である

仕事が見つかりにくい

キャリア形成が難しい

税金、社会保障などの

手続きがわからない、

煩雑である

働く時間が長い、忙しい

頼りになる同業者や

仲間がいない

仕事や事業について

相談できるところがない

能力を開発する機会が

乏しい

(%)

Unsta

ble

/low

incom

e

Th

ere

is n

o s

yste

m e

quiv

ale

nt to

unem

plo

ym

ent in

sura

nce a

vaila

ble

when b

ecom

ing u

nem

plo

yed

Th

ere

is n

o s

yste

m e

qu

iva

len

t to

wo

rke

rs' a

ccid

en

t co

mp

en

sa

tion

insu

ran

ce

ava

ilab

le w

he

n in

jure

d o

r

be

co

min

g s

ick d

ue

to w

ork

Bein

g in

a v

uln

era

ble

positio

n

Insuffic

ient s

ocia

l security

such a

s

health

insura

nce a

nd p

ensio

n, e

tc.

Diffic

ult to

find

wo

rk

Diffic

ult to

develo

p c

are

ers

Pro

cedure

s fo

r taxes a

nd s

ocia

l

security

, etc

. are

com

plic

ate

d a

nd

diffic

ult to

unders

tand

Long w

ork

ing h

ours

and b

ein

g v

ery

busy

Have n

o p

ers

ons o

n w

hom

one c

an

depend w

ho a

re in

the s

am

e

busin

ess o

r who a

re c

olle

agues

Th

ere

is n

o p

lace a

vaila

ble

to

consult a

bout w

ork

or b

usin

ess

Not m

any o

pportu

nitie

s fo

r

vocatio

nal a

bility

develo

pm

ent

― Career Development Challenges for People Opting for Working Styles

Not Bound by Traditional Employment Relationships [2] ―

Compared with self-employed individuals (with no employees) as a whole, self-employed professionals whose work involves using

telecommunications equipment tend to put more efforts on personal development.

While many independent self-employed persons are feeling insecure about their income prospects, a certain number of them say theyface challenges in career development. The government should discuss measures to assist independent self-employed individuals to

hone their skills if the number of such self-employed persons increases.

Source: Prepared based on “2016 Survey on Time Use and Leisure Activities”, MIC (left figure); and “Survey on Employment Situation and Attitudes of Independent Self-Employed Persons

(Web-based Survey)” (2018), The Japan Institute for Labour Policy and Training (right figure)

(Notes) 1) “Independent self-employed persons” refers to self-employed persons working without an employer excluding owners of private shops and those engaged in agriculture, forestry, and

fisheries (generic term for self-employed, freelancers, sole proprietors, and cloud workers).

2) The right figure shows the answers to the question asking independent self-employed person about the issues in continuing work. Multiple answers allowed.

Methods that independent self-employed persons consider necessary for

vocational ability development and issues that they have

33.8

60.7

53.3

60.9

0

20

40

60

80

Se

lf-em

plo

yed p

ers

ons

(no e

mp

loyers

)

Se

lf-em

plo

yed p

rofe

ssio

nals

work

ing b

y u

tilizin

g in

form

atio

nand c

om

munic

atio

n e

quip

men

t

Se

lf-em

plo

yed p

ers

ons

(no e

mp

loyers

)

Se

lf-em

plo

yed p

rofe

ssio

nals

work

ing b

y u

tilizin

g in

form

atio

nand c

om

munic

atio

n e

quip

men

t

Males Females

Implementation rate of self-development by self-employed persons

(with no employees)(%)

29

57.8

41.2

19.317.8

15.6

11.8

4.8

0

10

20

30

40

50

60

70

Costs

are

too h

igh

Work

ing h

ours

are

too lo

ng

to a

fford

suffic

ient tim

e

Locatio

ns o

f lectu

res a

re

too fa

r (cannot c

om

mute

)

There

is n

o e

ducatio

nal c

ours

e

availa

ble

that m

atc

hes o

wn

require

ments

There

is n

o s

hort-te

rm

(less th

an o

ne ye

ar)

educatio

n p

rogra

m a

vaila

ble

Cannot o

bta

in th

e

unders

tandin

g o

f the w

ork

pla

ce

Not v

alu

ed in

term

s o

f tre

atm

ent

(%)

― Status of Adult Learners Returning to School

for Education and Difficulties They Encounter ―

Returning to universities, etc. for education can help workers develop skills needed for their jobs and increase their motivation at work.

Adult learners encounter difficulties, such as long working hours, when they try to return to school for education. To address suchproblems, educational institutions need to be more flexible and consider providing courses in the evening hours or on holidays.

Source: Prepared based on “Survey on Progress in Diversified Work Styles and Ideal Human Resource Management” (2018), The Japan Institute for Labour Policy and Training (left figure); “Survey

Study on Identifying Actual Situation of Re-education for Working Adults at Universities, etc.” (FY2015), Innovation Design & Technologies (middle figure); and “education and training

benefits system / search system for education and training designated by the Minister of Health, Labour and Welfare” and “employment insurance business data”, MHLW (right figure)

(Notes) 1) The left figure shows the effects of self-development compared to 5 years ago by the status of participating in lecture courses at universities/graduate schools.

2) The right figure shows the figures of 2017, and “specialized practical education and training” refers to education and training designated by the Minister of Health, Labour and Welfare as

specialized practical education and training that contribute to medium- to long-term career development.

2,066

170 85 96

6,484

2,178

2,381

4,711

0

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2,500

昼間

課程

夜間

課程

土日

課程

通信

課程

(Number of lecture courses) (Persons)

Number of recipients of

education and training

benefits (right axis)

Designated number of

lecture courses

Daytime

courses

Weekend

courses

Correspondence

coursesNighttime

courses

66.7

36.1

80.6

68.8

53.3

35.6

66.7

57.1

0

20

40

60

80

100

大学等

の講座

を受講

大学等以外

で自己啓発

実施

大学等

の講座

を受講

大学等以外

で自己啓発

実施

就労に対する

モチベーションが

向上した

仕事に要する

専門的な知識・技術が

向上した

男性女性

(“Improved” minus “Did not improve”, % points)

30

Number of practical and professional

education/training courses and the number of

recipients of education and training benefits

Obstacles that prevent people who have never

taken continuing education courses from

starting to learn again at universities, etc.

Benefits of participation in continuing education

courses at universities, etc.(regular employees)

Motivation toward work increased

Participate in

lecture

courses at

universities,

etc.

Implement self-

development

other than at

universities,

etc.

Specialized knowledge/ skills necessary for work

improved

Participate in

lecture

courses at

universities,

etc.

Implement self-

development

other than at

universities,

etc.

Males Females

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Analysis of the Labour Economy - mhlw[Summary] September 2018 Ministry of Health, Labour and Welfare...

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