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

Policies for displacement in Japan Masakuni HIRASHIMA Planning Director for Employment Policy Ministry of Health, Labour and Welfare of Japan Ministry of Health, Labour and Welfare of Japan Conference for launch of the OECD Analytical Report on Displaced Workers 16 ‐ 17 May 2013, Paris, France

Overview of Employment Situation （times） （％） Latest peak of 1.10 6.0 Highest in past g p jobs to applicants jobs-to-applicants 368 million people ratio:1.08 Aug in 2002 July 2006 Jobs-to-applicants ratio in March. 2013, 0.86 1.00 5.5 Latest peak of unemployment 完全失業率 Highest in past rate 5.5％ 過去最高 5.5％ June Aug 2002 April 2003 June, Aug. 2002, April 2003 14 年 6 月 8 月 15 年 4 月 14 年 6 月、 8 月、 15 年 4 月、 July 2009 21 年 7 月 0.90 5.0 0.80 4.5 Unemployment rates (right scale ） 0.70 Jobs-to-applicants ratio 4.0 (left scale ） (left scale ） Latest valley of Latest valley of unemployment rate July in 2007 3.6％ 0.60 3.5 Unemployment rate in March 2013, 4.1 ％ 2.67 million people Jobs-to-applicants ratio 0.50 3.0 Lowest in the past 0.42 Aug in 2009 Up May 97 Up May 97 0.40 U Up Nov 00 N 00 Down Jan 02 Up Feb 08 Down Mar 09 2.5 Down Jan 99 1997 1998 1999 2000 20001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Labour Force Survey (Ministry of Internal Affairs and Communications) ※ Shaded areas show recession periods Employment Security Service Statistics (Ministry of Health, Labour and Welfare) 1

Employment Measures after the Economic Crisis “Protect” Employment Relaxation of requirements for Employment Adjustment Subsidy Program Relaxation of requirements for Employment Adjustment Subsidy Program The Program provides employers with subsidies that finance a portion of their wage expenses. This will apply when employers suspend business operations. ⇒ Expand the qualifying condition / Increase the amount and period of subsidies “Connect” Employment Reinforce Public Vocational Training Establish Jobseekers Support System Provide vocational training for unemployed who are not eligible to unemployment insurance. Reinforce Employment Insurance System “Create” Employment “C ” E l Execute Employment Creation Fund Projects ・Subsidy Project to Boost Employment in Rural Areas ・Emergency Job Creation Program(Create temporary employment ) Emergency Job Creation Program(Create temporary employment ) ・Schemes for Generation of Employment in Priorities （Employment Creation in Priorities such as the growing promising priority fields, nursing care, medical care, etc. ) 2

Reinforcement of Employment Adjustment Subsidy Program after Economic Crisis Relaxation of requirements Expand the scope for employers to receive support 【production volume requirement】 immediately. Production volume in latest six Production volume decreases in latest three months by 5% months decreases by 10% or more or more compared to previous year or another three compared to previous year. p p y months . (Nov 2008) th (N 2008) 【employment periods requirement】 In order to cover new graduates and temporary workers Workers whose employment All workers are covered, regardless of the duration of g periods are less than 6 months periods are less than 6 months employment periods. (Nov 2008) are not covered. Increase subsidy rates / Prolong subsidy period 【subsidy rates for expenses】 【subsidy rates for expenses】 Large firms ２／３ (Jun 2009) Large firms １／２ SMEs ４／５ (Nov 2008) SMEs ２／３ 【 subsidy amounts for education and training 】 【subsidy amounts for training】 Large firms ４,０００JPY ( = 40USD) /day (Jun 2009) １,２００ JPY ( = 12USD )/day SMEs ６ ０００JPY (=60USD)/day (Nov 2008) SMEs ６,０００JPY (=60USD)/day (Nov 2008) 【Maximum subsidy days】 【Maximum subsidy days】 100days per a year and 300days in 3 years (Jun 2009) 150days in 3 years 3

Outcome and Effect of Employment Adjustment Subsidy Program The number of firms and workers under Employment Adjustment Subsidy Programs The number of firms and workers under Employment Adjustment Subsidy Programs soared after the Economic Crisis, but are decreasing gradually since FY 2010. 【peak】 The number of firms using the subsidy：96,400（October 2009） The number of approved people：2,527,754 （July 2009） pp p p y The number of firms The number of using the subsidy approved people FY 2008 FY 2008 407 407 21 182 21,182 FY 2009 66,168 1,774,871 FY 2010 62,976 836,195 FY 2011 43,323 645,675 (average of each month) (average of each month) FY 2012(prompt) 27,488 384,973 The Employment Adjustment Subsidy Program has contributed to protect employment. 【A trial calculation】 【A i l l l i 】 The program contributed to decrease unemployment rates by 0.5 to 1.0 percent, according to a trial calculation by Cabinet Office, Government of Japan. 【Evaluation of this subsidy program (2011 survey)】 【E l i f hi b id (2011 )】 Closed firms rate after 1 year since firms began to use this program : 0.71％ Protected workers rate after 6 months since workers were covered by this program : 93.8% 4

Training for displaced workers GOJ started training for job seekers who were not covered by unemployment insurance in July 2009 in addition to traditional ones mainly for unemployment insurance beneficiaries. The new system was legislated later. 【target people】 Jobseekers who are not covered by employment insurance, such as non-regular workers and people with no work experience are able to use free training people with no work experience, are able to use free training. Training period : 3 to 6 months. 【Implementing bodies】 Private training institutions MHLW certifies implementing bodies for each training course. 【B 【Benefits】 fit 】 Support Training Benefits are distributed to job seekers who meet requirements. ・100,000 JPY ( = 1,000USD) per month ・traveling costs to attend the training institution traveling costs to attend the training institution ・50,000 JPY (= 500USD) loan for applicants ( 100,000 JPY ( = 1,000USD) loan if individuals have spouse. ) ※1USD = 100JPY 5

Increase of Public Vocational Training for Jobseekers after Economic Crisis (Output of Public Vocational Training for Jobseekers) FY 2012(as of end of FY 2008 FY 2009 FY 2010 FY 2011 February 2013) The The The The The Employmen Employmen Employmen Employmen Employmen Employmen Employment Employment Employment Employment number of number of number of number of number of rates t rates t rates t rates rates trainees trainees trainees trainees trainees Public Vocational Training (Training mainly 131,800 68.3～74.5 191,228 62.4～73.9 166,681 63.7～77.6 149,112 66.8～80.3 144,178 - for unemployment insurance beneficiaries) Support training Support training (Training for jobseekers not 73.4～ - 48,528 60.3% 292,252 69.2% 265,250 98,555 - covered by the 77.5% unemployment insurance) Total 131,800 239,999 458,900 414,362 242,733 (Note 1) Employment rates on public vocational training refer to employment rates at 3 months after training ended. (Note 2) Output of support training in fiscal year from 2008 to 2011 includes the number of support training programs before the law was in force. 6

Expansion of Scope of Non ‐ regular Workers for Unemployment Insurance Before 2008 ・ Fixed working hours/wk: 20 hours or more ・ Employment term (expectation): 1 year or longer After 2009 ・ Fixed working hours/wk: 20 hours or more ・ Employment term (expectation): Six months or longer * Scope was expanded due to the economic crisis Scope was expanded due to the economic crisis After 2010 ・ Fixed working hours/wk: 20 hours or more ・ Employment term (expectation): 31 days or longer * Scope was expanded further to protect non ‐ regular workers p p p g ７

Extension of the Unemployment Benefits Outline For the unemployed who leave their jobs because of bankruptcy, dismissal, or non ‐ renewal of labor contracts and who have difficulty becoming re ‐ employed in light of their age, area, etc., the basic allowance is extended for 60 days. (A temporary measure valid for those who leave their jobs before March 31, 2014). An additional 60 days of benefits will be provided as an entitlement to those who left jobs because of the earthquake and tsunami of 2011. Beneficiary (A job seeker who satisfies any of the following conditions) Beneficiary (A job seeker who satisfies any of the following conditions) (1) A person who is younger than 45 (2) A person who lives in an area where the following conditions have existed during the last month: ① ① The ratio of Job seekers to labor force population is equal to or higher than the national average. ② The jobs ‐ to ‐ applicants ratio in the area is less than 1.0. ③ The rate of basic unemployment insurance recipient is equal to or higher than the national average. (3) A person who has been recognized by the head of the Public Employment Service Office as needing systematic support for re ‐ employment, while taking into account the knowledge, skills, and work experience f l h l k h k l d k ll d k of the beneficiary. Outcome (2009) ( ) 553,000 people (Approximately a quarter of total beneficiaries) ８