Active labour market policies in Japan: a shift away from the company-centred model?

Japan has been characterized as a company-centred society in which 'welfare through work' is the main source of welfare provision. Although the Employment Insurance scheme contains some elements of active labour market policies, these are based on a lifelong employment system that prevents rather than promotes labour mobility among companies. The traditional model has recently been challenged. Young people can no longer easily find stable jobs because companies have reduced the ratio of regular workers. The government has implemented various schemes outside the Employment Insurance scheme to support youth, single mothers and the elderly who are located on the periphery of the model. Nevertheless, the Japanese model of work-welfare nexus still maintains a company- centred nature, though coverage of its privileges has been shrinking. Even in recent recessions, employers have sought to retain their regular workers. The Employment Adjustment Subsidies offered under the Employment Insurance scheme support employers' efforts to retain employees. Although the traditional model is at a crossroads, it is unrealistic to predict its sudden demise. We should seek ways to redress disparities between insiders and outsiders of the model by enriching active labour market policies for youth, single mothers and the elderly, while simultaneously maintaining the merits of long-term employment.