Abstract
In the mid-1990s, the unemployment rate in Japan was still extremely low compared with other industrialised countries such as the USA and those in the EU. The recession of the Japanese domestic economy raised the unemployment rate to 2.9 % (June, 1994), which was still lower than that of other industrialised countries but a similar level as during the oil crisis in Japan (2.8 % in 1986). One of the reasons for the low level of unemployment in Japan was explained by the term ‘lifetime employment system’, which was supported by employers and workers as an implicit agreement in an enterprise. The benefits of this practice were that it enabled social partners to secure employment continuation prior to other concerns of workers. This well-known approach, however, led to a misunderstanding of the real employment situation in Japan. A large number of employees in an enterprise did not necessarily have their initial employment connections protected for life; rather, most of them had the option of retiring early.
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Notes
- 1.
Japanese long-term employment practice can be proved if you observe the applicable coverage of employees who had worked for 20 years in 1995. Around 56 % of white-collar workers had worked for 20 years while 32 % of German workers worked for the same period in the 1970s. There were few differences in the length of time worked on average between Germany and other industrialised countries.
- 2.
This explanation is basically in accordance with the presentation of Koichiro Imano at the Japan–Singapore joint symposium on HRD, held in Singapore in March 1997.
- 3.
Lynch, L.M. (1994), Training and the Private Sector, The University of Chicago Press, pp. 9–13.
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Kuriyama, N. (2017). The Employment Situation in Japan and the Effects of Human Resource Development on the Globalisation of Asia in the 1990s. In: Japanese Human Resource Management. Palgrave Macmillan Asian Business Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-43053-9_10
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