Abstract
During the current tight labor market, there are high expectations within Japan that NPOs can generate employment opportunities. In 1999, with the introduction of the Special Grant for Urgent Local Employment, Japanese NPOs were identified as a contributing element of employment polices for the first time. This paper analyzes the discussion relating to the impact of this grant on NPO employment practices. It examines how Japanese NPOs stood in relation to the framework of the grant and, based on official reports by Japanese prefectures, analyzes how the grants were put into practice by NPOs. The paper concludes with a comparison to the Special Grant for Urgent Creation of Local Employment introduced in 2001 and considers national and local government policies impacting NPOs.