The Japanese Employment System

A detailed Summary of The Japanese Employment System


One of the unique and well known features of the Japanese

employment system is permanent employment for workers. Japanese

corporations responses to recessionary periods provide an opportunity

to sort out the myths from the realities of the Japanese permanent

During recessions Japanese companies forced to reduce their

costs achieve reductions in several ways. First, they reduce the

number of women and temporary workers they employ. During the

recession that followed the 1973 oil shocks female employment dropped

by eleven percent; more then five times the drop in male employment.

It was easy to reduce female employment because women even if they

hold permanent positions are thought of as transitory workers who will


employment for non-temporary male workers not near retirement age,

permanent employment system serves them well. These workers come to

paying the price of this permanent employment system. Women who want

workers have more seniority and thus make more money then the average

early retirement to senior workers at the company. Many of these

workers. The second way Japanese companies reduce costs is by giving

invisible unemployed, uncounted by labor department statistics. The



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Approximate Word count = 564
Approximate Pages = 2 (250 words per page double spaced)

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