Work Style Reform and Labor Market Policies in Japan

Abstract

Recently, one of the most important policy issues in Japan is the work style reform. The reform is necessary because the country suffers from (1) a shortage of human resources due to population reduction, and (2) high unemployment due to rapid technological progress. “The Action Plan for the Realization of Work Style Reform” proposed by the Japanese government in March 2017 is regarded as a solution to these future social changes. But the reform will also change working conditions and job security. Therefore, we need to consider some new measures to realize the stable employment of workers. In this paper, we will discuss several key economic concepts which are important in thinking about future employment policies, including the trade-off relationship among multiple policy objectives.