OECD Urges Japan to Reform Labour Market

The Organization for Economic Cooperation and Development urged Japan in a report released Monday to set clear rules, such as through legal mechanisms, under which companies can dismiss workers.

Among the key recommendations in the report on Japanese employment policies, the OECD urged Japan to reduce the “ambiguity in the definition of unfair dismissals which may cause employers to be particularly cautious about recruiting new workers into skilled jobs.”

Japan should also take steps to improve the situation for mid-career workers changing jobs or seeking re-employment by making it easier for them to document the on-the-job skills they have acquired, the OECD said.

The OECD also called for boosting public support for nonregular workers who have lost their jobs.

It also recommended that policymakers in Japan shift from “excessively preserving existing jobs to fostering the smooth mobility of workers from firms that are reducing employment to those that are recruiting new employees.”

The report on Japan focused on improving the re-employment prospects for people who have lost their jobs. The document was released at a symposium Monday sponsored by the Health, Labor and Welfare Ministry.

via Maininchi

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