News (09.01.2017)
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Japanese Unemployment rate

In Japan the unemployment rate is to understand more as a relative measure of unemployment. Many companies do not dismiss worker who actually have no work to do anymore in the company. First it would be difficult for the company to do this, as the Japanese law and culture protects this lifetime contract. Nevertheless for foreigners working this does not hold. Also foreign companies in Japan will dismiss their workers.

Nevertheless this scheme leads to a very rigid and inflexible labor market. In case a Japanese employee has lost his job in its 40ies or 50ies it is almost impossible for him to find a job in the same industry. That explains why everybody tries to hang on as long as possible with one company, but also why many young people do not get into this system as the companies still have a lot of 'hangover' workers, who can not be dismissed in a bigger scale. The efficiency of the whole working system is going down more and more.

A lifetime job with a company - whatever the content is - is the guarantee to have a normal life in Japan. In case this is not the case a person can not have a family or a normal social status. The situation is even worse for the pension as those people can get only 'Arubeito' jobs, where the worker does not receive pension benefits nor health care insurance from the company.

Japan faces the challenge to become a 'divided' society of really poor and on basic benefits living people and the other half living a 'normal' life. Nevertheless at least all the people are kept busy and have not to much time to oppose against this system. Their is a share which is small, but also still with this small share people can enjoy life as transport and basic food are somehow kept relatively cheap and basic services are well functioning for everybody (like clean streets, government services like police, good water and air quality, basic school education).