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The Japanese Employment System

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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

employment system.

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

leave the workforce when they get married. Female and temporary

workers are a safety valve for Japanese companies that allow

them to reduce costs in the short-term without firing permanent male

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

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

workers forced into early retirement then take up farming as is the

custom in Japan for retires. Getting rid of senior workers is one the

most effective tools companies have of reducing costs because these

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

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Keywords: what is lifetime employment in japan, how does the government of japan work, how does the japanese government work, what are japanese salarymen

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