On the 12th, the government discussed the direction of labor market reforms that address reskilling (re-learning), labor mobility, and structural wage increases. Emphasis is placed on passing on labor costs in order to promote wage increases for small and medium-sized enterprises. Based on the actual situation, we will set out guidelines on how to pass on the costs appropriately. We will also focus on the spread of job-based wages (job-based employment) that match the actual situation of Japanese companies. As early as June, the ministry plans to compile a policy on the direction of labor market reform.
On the same day, the Council for the Realization of New Capitalism (chaired by Prime Minister Fumio Kishida) was held at the prime minister's official residence, and proposed points of discussion for reform.
The draft points of contention point out that workers' reskilling and voluntary labor mobility are essential for the growth of domestic companies and the economy. We will promote the trinity of reforms, achieve structural wage increases, and reduce the wage gap between Japanese companies and foreign companies.
In order to encourage skill improvement through reskilling, support measures such as subsidies for re-learning of employees will be switched from the current mainstream payment through companies to individual payment. The goal is to have the majority of the payments made through individuals within five years. In order to expand the introduction of job-based wages suited to individual companies, the government plans to collect advanced cases and compile them into a collection of cases by the end of the year.
In terms of facilitating the labor transition, the unemployment benefit system will be reviewed. If you leave your job for personal reasons, it will take two to three months from the time you apply for a job to the time you receive unemployment benefits. Based on the company's convenience requirements, the system will be designed in the direction of relaxing the requirements for self-convenience.
