Changing Personnel Management under Flexible Employment System

Abstract

Japan's labor markets have undergone significant changes with the deceleration of medium-term economic growth, aging of the labor force, and an increasing share of woman workers. Under such changing economic circumstances, the long-term employment practices which were supported by high rates of economic growth has been changing steadily. This is reflected by the following: one, flattening of the age-wage profiles and widening of wage differentials within the same age group; two, increasing share of the workers without job security; three, declining share of the labor union membership; fourth, lowerring share of single-earner households which are replaced by double-earners households. Japanese companies are required to change their personnel management to meet with these labor market changes.