Employment Relations in Japan: Recent Changes under Global Competition and Recession

Abstract

This article reviews the recent developments of employment relations in Japan. The period 2008—9 has been rich in dramatic changes. First, there was the financial and economic crisis of 2008 which dealt a serious blow to the fragile Japanese economy. Second, in September 2009, a new government led by the Democratic Party of Japan was elected for the first time since 1955. The traditional Japanese employment relations system with long-term employment still applies to core workers in large firms, but their share has been diminishing in favour of the continual growth of atypical employment or non-regular employees.