Climbing Up the Career Ladder

vol.1

Climbing Up the Career Ladder

Government Actively Supports Individuals Seeking to Gain Skills and to Obtain a Job which Offers Challenges.

-Significance and prospects of the proposed vocational training subsidies for employees under the Educational and Training Grant System and the vocational training subsidies program for promoting re-employment of the middle aged and older under the Emergency Training for the Rehiring of the Middle-aged and Older People

These days, the labor situation is bleak in Japan. In February 1998, the unemployment rate reached 3.6 %, the highest since records have been kept, and it is still rising. It is expected to hover around 4 %. Those losing their jobs are not only young people with insufficient work skills, but also the middle aged who occupy high corporate positions. The total number of people unemployed is over three million.

Ten years ago the Japanese experienced the "bubble economy." In those days, new graduates would be hired by large corporations, whose stocks were listed on the stock exchange. Because of a labor shortage, there was a job hopping boom among young people, employed for less than five years, with many enjoying job hopping through different first-class-companies. However, these days, active openings total less than 0.5 % and it is believed that there are more than 150 million others who do n not have sufficient work to do, but the employer can not let them go. The job market is shrinking and job opportunities are decreasing.

Deregulation by the Ministry of Labor and the Ministry of International Trade and Industry diversified employment conditions and, as a result, job opportunities increased. Now, however, this diversity is having the opposite effect, it is actually threatening job security. People distrust the effect of government proposed employment policies and feel depressed and gloomy about the future. This feeling makes the job market unstable. At this difficult time, it is important that every single individual finds fulfillment in that he or she gets good value in consideration for a job done. For those who are depressed concerning their employment situation, it is helpful for them develop their abilities in order to work toward becoming qualified for new jobs.

Each person shall have the right and the obligation to work as guaranteed by the Japanese Constitution of Japan (Article 27-1). The fundamental right to work is one of basic human rights concerned with the right to live. In order to guarantee this right, many laws have been enacted since the end of the World War II. The Employment Act of 1966 ( Law 132) plays a key part in labor policies. Surrounding this core law, are the Employment Security Law (Law 141, 1947), the Human Resources Development Promotion Law (Law 64, 1969) and the Employment Security Law, covering older persons (Law 68, 1971) and others, all geared toward constructing a legal system which works to create employment, to protect the rights of workers , to provide social insurance and so forth.

There have been limitations caused by modern economic policies on what has been delivered through these laws, so the people have experienced serious deflation and have little prospect for increased employment opportunities. And this is a problem which cannot be solved by ordinary policies where government guarantees and controls economic and legal relationships between employers and employees from a constitutional point of view. It is necessary for individuals to exert greater effort themselves in seeking jobs. We, the workers, must develop our skills, cultivate ourselves and do job research so that we can use our knowledge more effectively and become invaluable and attractive as a workforce.

The Ministry of Labor has begun a system of vocational training subsidies for employees and a system of vocational training subsidies for promoting re-employment of persons middle aged and older. The purpose of the vocational training subsidies system for employees is to assist individuals to develop their skills through educational training courses designated by the Minister of Labor. These individuals must have been beneficiaries of employment insurance for more than five years or be able to take part in educational training courses within one year after leaving their jobs. They will receive a refund of 80 % of the tuition paid with the a maximum of 200,000 yen, around $1,640 ($1.00=122 yen), by the regional public employment security office This program is known as "Hello Work" in Japan. This system started on December , 1998. Those who have been beneficiaries of employment insurance for more than five years are regarded as the same as those who have more than five years work experience, after graduating from school, so usually people over thirty are qualified for this program. It has accelerated a boom to obtain certain certifications such as those for Residential Properties Trading Agent, which is somewhat equivalent to a realtor, Labor and Social Insurance Consultant, Real Estate Appraiser, and others.

Construction companies and other companies which have a real estate department and a legal department encourage their employees to obtain a Residential Properties Trading Agent license. Generally, when individuals prepared to take the examination without leaving their jobs, they were likely to worry about financial problems, time management and the like, so this system really encourages people to attempt to obtain a license if they had been hesitant to do so before because of these problems.

The most popular licenses are System Administrator, U.S. Certified Public Accountant (U.S. CPA) and Financial Planner (FP). Even though they do not plan to change jobs, but just want to obtain one of these licenses in order to prepare for an uncertain future, individuals can obtain a refund from this system when they take certain courses.

The governing party of the Diet is trying to obtain, in the next budget, adequate funding for the vocational training subsidies and enhance the training programs. The Democratic Party of Japan, as a party out of power, has proposed shortening the eligiabity requirement period of the covered work term from five years to six months. term. There are many who want to utilize these programs. Some are looking for jobs with more challenge, others who have quit working in order to climb career ladders, or have lost their jobs unwillingly. This system is expected to work efficiently to help solve the problems of a bleak labor situation and recession in Japan.

In addition to the system of vocational training subsidies for employees, the system of vocational training subsidies for promoting re-employment of persons middle aged and older is being put into operation. The Ministry of Labor has commissioned private educational organizations to provide vocational education to people over 45 and less than 60 years old, who are receiving unemployment pay. Under this system, the government pays the tuition directly. The organizations are commissioned to offer two types of training courses. One is to develop the skills of white-collar workers and the other is to encourage individuals to change occupations.

The purpose of the program aimed at the vocational development of white collar workers is to develop management skills with courses in taxation, accounting, financial management, trading and business administration. Each course includes practical training. The program aimed at encouraging a change in occupation, for example, from a clerical job to a technical job, or from a service job to a job of in the information industry includes how to make such a change easy. The courses include surveying techniques, real estate consulting, health care, medical insurance secretarial and clerical computer training.

The system of vocational training subsidies for employees and the system of vocational training subsidies for promoting re-employment of the middle aged and older work separately. The reasons for operating the two systems separately are as follows. First, people can use both systems; that is they can receive a refund of 80% of their tuition and they can also take one of the vocational education courses offered by private educational organizations commissioned by the Ministry of Labor.

Even if someone does not meet the requirements of the system of vocational training subsidies for employees or have already received benefit of the system, they can use the system of vocational training subsidies for promoting re-employment of persons middle aged and older.

Individuals who wish to obtain job certifications should apply for this benefit. There is a proverb, "Look before you leap." Practical knowledge is necessary in order to survive in a world of free competition. Those who want to develop their skills using these systems are expected to participate on the business front line.

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