Japan

Japan's college graduates are experiencing better employment prospects. Japans economy grew 1.7% as a percentage of GDP in the first quarter of 2012. This number is not high by global standards but is very good for a sluggish Japan economy.

Many major banks in Japan, such as Morgan Stanley, Citigroup, and HSBC Holdings, have been cutting a significant number of jobs. In an attempt to downsize, Goldman Sachs began its layoffs in June 2011 and continued them into late August 2011.

According to ECA International's global survey, Japan has the greatest cost of living for expatriates in Asia. Both regionally and internationally, Tokyo continues to be the most expensive city to reside in.

In Japan, a recent survey found that 74% of Japanese women that hold degrees are voluntarily quitting their jobs, a significant 28% more than American women. Reasons behind this trend include traditional reasons, such as childcare and stalled careers.

In Japan, the Fukuoka High Court, the highest court in the Kyushu and Okinawa sections, announced public welfare eligibility to foreign permanent residents. This announcement came as a result of a lawsuit.

On July 27, 2011, Japan's Central Minimum Wages Council proposed raising the regional minimum hourly wage by $0.01 to $0.24, depending on the region. The average raise is expected to be $0.08.

Released on June 22, 2011, a Robert Walters global survey, which included 16 Asian countries, revealed that about one third of Japanese professionals did not receive salary raises from 2010 to 2011.

The Japanese government is drafting a proposal for new pension reforms. Under this new proposal, Japanese pensioners will be eligible for benefits under the national basic pension plan if they pay premiums for 10 years or more.

Dramatic labor shortages have added another burden to Japan. Following March 11s earthquake and tsunami, and the ensuing crisis at the Fukushima District nuclear plant, tens of thousands of foreign workers have evacuated Japan and returned home.

The Japanese government, the Ministry of Health, Labor and Welfare (MHLW) and political opposition parties are negotiating over Japans current pension reform.

While more than one third of Japans graduates this year are still struggling to secure jobs, a number of leading Japanese enterprises operating in Japan are looking favorably upon graduates from China.

The Japanese Business Confederation recently released data indicating that 2010 summer bonus levels rose among major Japanese companies for the first time in the past 3 years.

A cost of living survey released by ECA International in June 2010 places Tokyo as the most expensive city for foreigners in the world. This is the first time that the Japanese capital has ranked in the top spot globally since 2005.

Under the leadership of the new Japanese Prime Minister, Naoto Kan, the Japanese Cabinet recently approved a New Growth Strategy to strengthen the Japanese economy and improve competitiveness in the global economy.

Given the trend toward lifetime employment in Japan, those graduates who do not receive offers by April 1st often find themselves pushed into career tracks as temporary workers with lower salaries and fewer benefits.

Nearly two months after this years shunto, or spring wage offensive, began in Japan, most major manufacturers have agreed to resume the periodic wage increase after the freeze during the recession last year.

Japans Health and Labor Minister, Akira Nagatsuma, recently announced plans for new legislation that will make it much more difficult for manufacturers to hire temporary workers.

In December 2009, the Japanese government announced plans to spend $225 million to expand daycare facilities in the workplace, in order to encourage women into the workforce and effectively boost economic growth.

Each spring, the Japanese Trade Union Confederation (known as Rengo in Japanese) initiates nationwide wage negotiations with employers throughout the country.

Recently released economic statistics indicate that Japan's industrial production output increased by only 0.5% during the month of October 2009.

November 2009 statistics show that Japans unemployment rate fell for the second consecutive month in September.

After his Democratic Party of Japan (DPJ) won a landslide victory, the new Japanese Prime Minister, Yukio Hatoyama, took office last month.

On August 30, 2009, Japan held elections for its lower house of parliament. These election results are of particular significance to foreign companies with employees in Japan, as dramatic shifts in labor policies could result.

On June 24, 2009, the Japanese Diet passed a revision to the Law for Childcare Leave. The new amendment establishes a limit of a six-hour workday for employees with children under the age of three.

The Japanese government recently announced an employment assistance stimulus package of 1.5 trillion yen (about US$15 billion). This comes in response to an unemployment rate that has lingered above 4% for the past several months.

The bleak economic outlook in Japan has been exacerbated for both local and foreign manufacturers by increased worker demands for pay raises. Rengo has recently announced its intentions to seek pay increases for its members for 2009.

The growing number of employees working extended overtime has been an increasing point of concern in Japan. On December 5, 2008, in response to this issue, Japans Diet revised the Labor Standards Law governing overtime pay.

On October 21, 2008, Japans Ministry of Health, Labor and Welfare (MHLW) announced it plans a new subsidy program to encourage employers to hire from Japans large pool of freeters.

One of Japans traditional types of corporate pension plans, the tax-qualified pension plan system, is set to be abolished from March 2012. This abolition reflects strains on the system from Japans rapidly aging society.

Last month, Japans Central Minimum Wages Council made a recommendation to the Health, Labor and Welfare Minister to raise national minimum wage by an average of 15 yen (about USD$0.14) per hour.

In May 2008, McDonalds Corporation Japan announced that it would begin paying its store managers for overtime. This decision came in the wake of a lawsuit earlier this year in Japan against the fast-food giant.

On April 1, 2008, Japans new Financial Instruments and Exchanges (FIE) Law came into effect. This law is known as J-SOX due to its similarity to the 2002 Sarbanes-Oxley Act (SOX) in the US.

On March 1, 2008, a new Labor Contract Law came into effect in Japan. Prior to this law, no legal guidelines existed in Japan with regard to employment rules. Labor disputes were generally settled in court based on past case law.

The Japanese Labor Ministry announced plans to introduce a subsidy next month that will encourage small and medium-size businesses in Japan to increase full-time hiring.

In December 2007, the Japanese government announced that it would not appeal the Nagoya District Courts verdict in an important labor lawsuit against Toyota Motors.

Japans Ministry of Internal Affairs and Communications recently released statistics showing that the national unemployment rate in November 2007 improved slightly to 3.8% after two straight months at 4.0%.

On November 20, 2007, the revised Immigration Control and Refugee Recognition Law came into effect in Japan.

The Japanese government has announced plans to increase monthly payments to retired persons under the current pension system.

In August, 2007, Japans unemployment rate rose slightly (0.2 percentage points to 3.8%) for the first time in almost a year.

Discussion of new labor legislation involving overtime pay is currently underway in Japan. Management and unions are hoping to reach a common ground on how to regulate the time spent by employees in the office.

Given the recovery of the Japanese economy and the imminent retirement of large numbers of baby boomers, more jobs are becoming available in Japan. This has caused top new graduates to become pickier about whom they work for.

Plans are now underway in Japan to increase spending on child-rearing support, and to encourage smaller firms to provide greater support for working mothers.

HR managers looking to fill positions in Asias high-tech industries can now turn to Japanese skilled retirees looking for new career opportunities outside of Japan after retirement.

Last month, Japanese Prime Minister Shinzo Abes Cabinet gave endorsement to two pension reform bills. The bills aim to change the scope and administration of the current pension system.

HR managers at foreign firms operating in Japan should expect employee demands for flexible hours and family benefits to increase.

On January 25, 2007, Japanese lawmakers were expected to vote on a controversial new labor reform bill that exempted white collar workers from current overtime regulations.

On January 1, 2007, new national income tax rates became effective in Japan. The changes will lower national income tax rates from 10% to 5% for the lowest income group, which earns an annual salary of less than 3,300,000 (about $16,800).

Shinzo Abe took office on September 26, 2006 as the new Japanese prime minister. He vowed to continue the decade-long trend of economic reform and restructuring in Japan.

Japans Foreigners Training and Technical Practice System allows companies in Japan to bring foreigners into the country, and provide them with a mixture of education and on-the-job experience.

With Japans economy in recovery, its job market is also losing its sluggishness of the last fifteen years.

On June 15th, 2006, the Japanese Diet passed into law an amendment to Japans Equal Employment Law. The amendment broadens the definition of discrimination to include indirect as well as direct discriminatory practices. It will take effect in April 2007.

In May 2006, the Japanese Council on Economic and Fiscal Policy announced a new Global Strategy policy that would allow more foreign professionals to work in Japan and extend the length of stay for foreigners in the country.

On April 24, 2006, the Japanese government announced plans to close the gap between private sector pension and public servant pension payments. The laws will gradually increase private pensions and decrease public ones until they both reach 18.3%.

The Japanese Ministry of Health, Labor and Welfare (MHLW) recently adopted a package of bills to limit spending on medical care benefits and reduce medical insurance coverage for a portion of the elderly population in Japan.

Although many foreign nationals travel to Japan for short-term work assignments, an increasing number of expatriates are deciding to establish permanent residences in Japanand they want to buy, not rent, property.

The Japanese government recently proposed a new law that would require companies in Japan to plan employees vacations at the start of the business year and encourage employees to take the vacation.

In December 2005, the Japan Ministry of Health Labor and Welfare (MHLW) reminded all labor bureaus in Japan that workers can receive compensation for any mental illness relating to sexual harassment in the workplace.

Over the course of 2005, there has been a trend amongst Japanese companies to offer young graduates probationary employment. More and more Japanese graduates are accepting temporary jobs instead of permanent positions.

In April 2006, Japanese companies will be required to give their employees the option to work until they turn 65. Beginning in 2006, companies must guarantee jobs for 62 year old employees.

In a recent study by the World Banks International Finance Corporation, Korea ranked 105th out of 155 countries in labor flexibility. In contrast, Hong Kong was ranked 3rd, Singapore 7th, Japan 20th, and Thailand was ranked 23rd for labor flexibility.

Salaries of Indian workers increased by nearly 15% in the last year, the highest in Asia. Behind India were China and the Philippines, which both saw salary increases of about 8%. Other high growth countries were Korea (7%) and Thailand (6.5%).

Japanese firms are offering more flexible and family-friendly work arrangements for their employees in accordance with the Law for Measures to Support the Development of the Next Generation, which came into effect on April 1, 2005.

As Japan moves away from lifetime employment, lawsuits are becoming more prevalent, especially concerning intellectual property issues. Therefore, on April 1, 2005, Japans judicial system established the Intellectual Property High Court.

Current trends in hiring have shown that more and more companies in Japan are trying to change the countrys male-dominated corporate culture by hiring more women for managerial positions.

As annual spring-time labor negotiations continue in Japan, it is clear that labor unions are pushing for higher bonuses in 2005, rather than demanding increases in monthly pay.

In recent months, some HR departments and recruiting firms focused on the Japanese market have been reporting strong growth in the demand for qualified personnel.

As lifetime employment becomes less common in Japan (especially in Tokyo) and technology patents and intellectual property issues continue to grow, companies in Japan are facing an increased number of legal battles.

Beginning in fiscal year 2005, employees will be faced with increased pension premiums and a reduction in retirement benefits. This new pension system will be implemented between 2005 and 2023.

As the number of retiring employees continues to rise in Japan, companies struggle with a shortage of experienced workers and an overall lack of manpower.

During the past several years, many companies in Japan have adopted a performance-based pay system, responding to the slow economy and pressure to reduce company spending.

Faced with a rapidly declining birthrate and a new class of professional women, the Japanese government has taken steps to encourage new mothers to stay in the workforce.

Women in the Japanese workforce still find it difficult to achieve professional growth and promotion in a traditionally male-dominated culture. To get ahead, women must think creatively and act entrepreneurial.

Japans Ministry of Health, Labor, and Welfare has finished work on a proposal that would gradually raise the retirement age from 60 to 65. The plan is now subject to approval in the Diet.

The Japanese governing coalition has taken steps to raise the premiums paid by average salaried workers and to decrease benefits. Premiums will rise to 18.35% of annual salary by 2017, up from a current level of 13.58%.

The usage of respectful forms of address among coworkers in Japan is rapidly decreasing. Japans honorific language, keigo, is becoming a thing of the past.

On November 5, 2003, Hitachi Ltd., one of Japans major electronic manufacturers, announced that they would abolish their seniority-based annual pay increase system beginning April 2004.

In the past, Japanese companies operating in China were known for restricting upper level management positions to Japanese executives only. However, Japanese companies are now realizing the need to utilize local labor for senior management.

Although Japan is known to be one of the worlds most technologically advanced countries, the country is still backwards when considering the employment of foreign IT workers especially in the software area.

On July 9, 2003, the Japanese Diet passed a new legislation requiring all employers in Japan, both foreign and domestic, with 300 or more employees to introduce childcare programs beginning in the 2005 fiscal year.

A recent 2003 survey on expatriate packages in the Asia region found that expatriates in Hong Kong working for multinational firms received the highest perks among their counterparts in the region.

Japanese employees are well known for their fierce loyalty to their companies. However, in recent years, this once honorable trait is becoming an increasing cause of death among Japanese workers.

In todays international business environment, many Japanese companies are looking for employees with English language proficiency to fill their higher level and managerial positions.

In May 2003, the Japanese government published their annual national life report entitled "Deflation and Daily Life Young 'Freeters' at Present." The term is derived from a German and English combination "free-arbeiter."

In order to maintain a more diversified workforce as well as to prevent the loss of women employees due to childbirth, many companies in Japan are opening up childcare centers to encourage top female workers to continue working after having a baby.

The Japanese Ministry of Health, Labor and Welfare recently released a report indicating that in 2002, the average regular wage of Japanese workers has decreased for the first time since 1976 when the government began compiling wage statistics.

A recent poll conducted by Nikkei Associate magazine attempted to deconstruct what foreign workers in Japan think about their Japanese colleagues. The magazine polled 50 businesspeople from foreign countries.

Although most unions in Japan are enterprise-based and consist of employees from a single company, every spring, a number of unions band together in order to demand improved working conditions through centralized bargaining with management.

In December 2002, the Japanese Ministry of Health, Labor and Welfare (MHLW) released a draft proposal to revise the countrys public pension system in the hopes of alleviating the burden pensions on younger generations of workers.

Despite Japans continuing economic slump, few efforts have been made to remedy one of the countrys most serious ailments, Japans inefficient use of labor.

Despite the current economic malaise in Japan, many are still eager to return for employment. This is especially true for people who have previously worked in Japan.

On October 4, 2002, the Japanese Ministry of Health, Labor and Welfare released the results of their survey on depression. The survey was conducted at small and medium-sized Japanese companies and among 11,976 employees from December 2001 to January 2002.

The Japanese government recently announced their plans to join the visa-free travel system developed through Asia Pacific Economic Cooperation (APEC).

Japans economic malaise has forced many Japanese jobseekers to pursue career opportunities in other countries. Among the places that are currently attracting Japanese workers is Shanghai, China.

Over the past few years the number of part-timers in Japan has skyrocketed. From 1997 to 2001, the number of part-timers increased by 2 million while the number of regular workers increased by 1.7 million during the same period of time.

Japanese companies have adopted new human resource management techniques to combat rising costs. They have begun to rethink old standards and implement new means to survive the stagnant economic environment.

In the midst of rising unemployment and falling profits, government and business officials have been frantically searching for creative ways to counterbalance the effects of the downturn. One idea is to implement a work-sharing program.

More and more young, educated Japanese women are straying from the traditional path. The ranks of female professionals in Japan have been growing steadily since the mid to late 1980s.

New pension rules in Japan went into effect October 1, 2001, allowing employers to set up defined contribution (DC) pension plans. An important benefit of DC plans from the is the portability of individual accounts.

Japans worsening economy confronts the possibility of its fourth recession in a decade. Data indicate that labor and employment conditions have already been affected.

Japans unemployment rate hit 5% last month -- a record since the country started collecting such data in 1953. Most analysts do not expect this rate to decline any time soon.

Minister of Economy, Trade, and Industry Takeo Hiranuma announced May 25th, 2001 the Hiranuma Plan, a 15-point plan focused on structural reform and new job creation.

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Japanese labor unions will emphasize part time workers' interests in spring negotiations