Chapter 3
Converting the Employment Structure
Section 1
Smooth Conversion of the Employment Structure


    The employment structure has changed greatly in terms of both industrial and occupational aspects, but the impact of job changes has been small until now. Going forward, as society ages and the number of children declines, new accessions by younger people and retiring by elderly people will not be enough to sufficiently change the employment structure. Therefore, job changes will play an important role. In terms of occupational skills development, there is an increasing focus on self-development as well as on-the-job training.

Changes to the Industrial Structure due to New Accessions and Retirement

    The employment structure has changed greatly in terms of both industrial and occupational aspects. A comparison of percentages of employed persons among different industries shows that the percentage of employees in tertiary industries rose by 4.5% between 1985 and 1995. Among males, changes were due primarily to accessions by younger workers and retirement by elderly workers (Fig. 57). Changes to the female employment structure were more extreme due to issues such as the fact that the employment pattern for many females is to retire in advance of marriage or childbirth, then to reenter the labour force after giving birth or after their children reach a certain age.

Promotions of Middle-aged Workers Also Impact Occupational Structure's Change

    An analysis of the employment structure for different occupations shows an increase of 3.8% points in the percentage of white collar workers between 1985 and 1995. Among males, changes were due primarily to new accessions, retirement and promotions of middle-aged workers (Fig. 58). Among females, although the percentage of white collar workers was weighed down by retirement and reentry to the workforce due to marriage and childbirth, the percentage nevertheless rose significantly above that of males because of the large impact of new accessions and retirement. Thus, the employment structure between 1985 and 1995 changed due to the following factors:

  1. New accessions by younger workers
  2. Retirement by females due to marriage and childbirth, following by reentry to the workforce
  3. Retirement by elderly workers
  4. Promotion of middle-aged males to management positions (related to occupational structure)

The Declining Impact of New Accessions

    The declining number of children will eventually have an impact on employment. As this happens, the impact of adjustments to the employment structure relating to new accessions will decline significantly. Based on estimates, the changes over the ten years between 1995 and 2005 in industrial and occupational structures will be approximately 20% less than the changes in the preceding ten years. As the aging of society with fewer children, new accessions by younger people and retiring by elderly people will not be enough to sufficiently change the employment structure. This means that movement of employed persons between industries and jobs will play an important role.

Diversified Types of Employment due to Increasing Numbers of Part-Time Workers and Temporary Workers

    Between 1987 and 1997, there was rapid growth in the number of employees fitting into the employment types of part-time workers, temporary workers, and the like, and the proportion of part-time workers (i.e., the proportion of part-time workers and temporary workers among all employed persons) rose. Among the different industries, increases were especially high in the wholesale and retail trade, and eating and drinking places; among the different occupations, there was an overall increase in the types of part-time work available in services. Diversified types of employment also reflects changes in the industrial and occupational structures, but those changes are not necessarily the only factor, given that diversity is also increasing in manufacturing and among blue collar workers.

The Need for Human Resources Development to Deal with Structural Transitions

    Amidst rapid structural transitions, Japanese companies have been rethinking their business strategies, considering ways to enhance or strengthen their main business or to expand into new businesses. Challenges related to obtaining and training needed employees often arise in implementing such strategies. This indicates that companies have a clear recognition of the need for human resources development from the perspective of training employees in dealing with rapid structural transitions (Fig. 59).

Vocational Ability, Creativity, and Flexibility that are Useful Outside the Company are Important

    Workers want to improve their employability in the overall labour market, while companies desire workers that have expertise, creativity, and flexibility characteristics that are also useful outside the company (Fig. 60).

An Increasing Focus on Self-Education while On-The-Job Training Remains the Primary Human Resources Development Method

    On-the-job training is the primary method for developing occupational skills. For core employees, the key focus areas are self-education and systematized on-the-job training.
    In the future, self-education will become an increasingly important part of human resources development, however, on-the-job training remains the primary method. Human resources development should be based on planned approaches to ensure long-term benefits while offering a wide range of options geared to individual needs and capability levels (Fig. 61).


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