Training employees for the advanced information age

Taizo Nishimuro Vice Chairmen of the Board of Councillors, Keidanren Chairman of the Board, Toshiba Corporation

It appears as if recovery in capital investment, primarily in IT, has led Japan's economy toward full-scale autonomous recovery at last. However, though business is gradually picking up and job availability is increasing, the unemployment rate rose to 4.8% in April. We are very concerned about employment and the problems that will emerge in future, including payment of pensions in an aging society that is producing fewer children. So for the present, we have not yet reached level of a practical, perfect recovery from depression, including increased individual consumption.

It has been suggested that, in 1999, 1.3% of the 4.7% unemployment rate was the result of poor demand, the consequence of the downturn in the business cycle after collapse of the bubble economy. The rest, 3.4%, reflects structural unemployment, a mismatch between skills and jobs available.
In recent years, companies have not sought negative restructuring through lower costs and the like, but positive restructuring. This seeks to change the business structure in a full-scale IT revolution so as to distribute management resources more efficiently and raise revenues. However, as an aftereffect of past management practices, divisions promoting IT application and developing IT-relate business are faced with a skills shortage. The Japanese labor market has seen an increased "mismatch of employment", in which the unemployment rate has risen at a time when demand for new employees in the IT business is increasing at a marked rate.

Companies must review programs for training employees for IT, as a matter or urgency, and also increase in-house mobility through steps to encourage employees to change occupation. This will help end the mismatch and create employment opportunities with new business.
Government is taking steps for restructuring and adjustment through the "Industry Reformation Act" and other steps to revitalize the economy. We look to government to take a stronger lead in economic regeneration with laws and tax policy supporting dynamic adjustment employment in this "revolutionary period". There is every possibility that, if companies and government positively cope with these problems, Japan's economy can regain " ten blank years " and achieve recovery as a leader in the IT revolution.