, also known as , is the "user pays" system of

unemployment benefits Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a comp ...

that operates in Japan. It is paired with and referred to collectively as .JETRO websit
4.9.1 Labour and social insurance systems
Retrieved on June 16, 2012 It is managed by Hello Work.

System

Japanese unemployment insurance is closer to the US or

Canadian Canadians (french: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of ...

"user pays" system than the taxpayer funded systems in place in countries such as the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...

, or

Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...

. It is paid for by contributions by both the employer and employee.

Requirements

Workers enrolling in unemployment insurance must be working at least 20 hours per week, and to expect to be employed for at least 31 days. Employees who are dispatched to Japan from overseas and who already have coverage in a similar scheme are not required to enroll in Japanese unemployment insurance. The Ministry of Health, Labour and Welfare of Japan in 2017 plans to cover workers with combined 20 or more hours at different firms in the unemployment insurance. This is due to an increasing trend of irregular employment in labour force since the 1990s. Recent years, the irregular unemployment rate has reached a 35% to 40%, almost doubling the percentage in 1990. This is due to the rising of part-time workers, as well as seniors rehired after retirement. The irregularity thus makes many people work for multiple companies. However, the social welfare coverage for those people are much lower than the full-time regular employees, including health care, pensions and unemployment insurance. With that being said, there is a growing population, with an estimation of 300,000 people not protected by the unemployment insurance but are in an unstable employment conditions. To improve the living standards of those working multiple jobs, and sustain the economy, the Ministry of Health, Labour and Welfare is going to propose it to the

Diet Diet may refer to: Food * Diet (nutrition), the sum of the food consumed by an organism or group * Dieting, the deliberate selection of food to control body weight or nutrient intake ** Diet food, foods that aid in creating a diet for weight loss ...

for further discussion.

Procedures

On leaving a job, employees are supposed to be given a "Rishoku-hyo" document showing their ID number (the same number is supposed to be used by later employers), employment periods, and pay (which contributions are linked to). The reason for leaving is also documented separately.

Premiums

Premiums are calculated as a certain percentage of each worker's total wage. Under the latest revision in April 2016, the insurance premium rate is 1.10% (the employer paying 0.7% and the worker paying 0.4%) with the exception of a few kinds of jobs.

Payments

The circumstances under which an employee left their position affect eligibility, timing, and amount of benefits. The length of time that unemployed workers can receive benefits depends on the age of the employee, and how long they have been employed and paying in. It is supposed to be compulsory for most full-time employees. If they have been enrolled for at least six months and are fired or made redundant, leave the company at the end of their contract, or their contract is non-renewed, the now-unemployed worker will receive unemployment insurance. If a worker quit of their own accord they may have to wait between one and three months before receiving any payment.

Rates

In July 2016 Japan's unemployment rate was 3%. Japan's unemployment rate has remained relatively low over the years. However July 2016 set the record low in twenty-one years. Despite this recent record low unemployment, Japan has record high job availability. Japan's unemployment rate might fall even lower based on their job availability. Japan's welfare state utilizes an egalitarian principle designed at providing equal aid to all individuals. This style facilitates maintaining low unemployment percentage, high job availability percentage, and a growing economy. Although unemployment rates are dynamic there are many intervening variables correlating to its growth or decline.

Other Unemployment Protection

Japanese government in 2011 started a new policy implementing vocational training for workers who want to change jobs and the unemployed. This system aims to be the second protection other than the unemployment insurance for people who are struggling in the labour force. With a monthly allowance of ¥100,000 and traffic fee, people who are registered at public employment security offices (PESOs) could receive the vocational training and get ready for their new career. The new job training system categorized 3 different types of training, specifically for job seekers, employed workers and the high school graduates. Most unemployed workers fit in the first category, and based on the released Manuel from the Ministry of Health, Labour and Welfare, their standard training period is 3 months to 1 year, ranging from gardening to Architecture. Many women indicate that such job training programs help them transition back to workplace after staying at home for years. But at the same time, some people are concerned with the quality of the training provided.

Notes

{{Employment Labour law Welfare economics Social security in Japan

Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...

Employment in Japan