Japan Press Weekly

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2012 December 12 - 18 [LABOR]

Use corporate internal reserves to create jobs

Improvement in working conditions is essential to encourage people to spend more money and help boost the economy.

In Japan, many employees are forced to work overtime without pay and get much fewer paid holidays than they are legally entitled to.

According to the Japan Research Institute of Labor Movement, the abolition of illegal unpaid overtime work and the full use of paid leave will create 4.66 million jobs.

In order to achieve this, 260 trillion yen in corporate internal reserves should be used.
Large corporations have accumulated the reserves by means of worsening employment conditions, including the replacement of full-time workers with non-regular workers. One in three workers is now engaged in non-regular employment.

If large corporations use one percent of their internal reserves, 82 of those corporations surveyed could hire 1,000 more people each. Among them, 9 companies could create over 10,000 jobs each.

To create jobs, at least a small portion of corporate internal reserves should be plowed back into civil society. A rise in household income would help fuel Japan’s overall economy and benefit many companies.

Related past articles
> Only 4% utilization of corporate internal reserves will create 4.66 million new jobs [January 21, 2012]
> Shii shows a way out of deflation spiral [November 25 & 26, 2012]
> Big business increases internal reserves amid economic downturn [November 25, 2012]