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In recent years, a higher proportion of highly educated women and changes in attitudes towards marriage and raising families have caused the birth rate in Japan to drop. Simultaneously, better living conditions and advancements in medical technology have resulted in lower death rates. Japanese society is rapidly becoming a depressed birth rate and aging society. The Japanese government''s concerns about the labor shortage have intensified, due to the decline in its population and the aging of its decreasing labor force. These phenomena further impede Japan’s ability to save and invest, resulting in a poor economic growth rate and low incomes. These circumstances create a heavier burden on social security and have negative mid- and long-term impact. Given the circumstances, if Japan seeks to alleviate its social security burdens, revitalize its economy, guarantee an adequate labor force, and cultivate future talent, it must place more importance on the building of a future labor force. Therefore, it is inevitable that the issue of integrating laborers that have not been introduced effectively into the current market has become a central issue. This thesis discusses scarcity of labor in Japan that arises from its depressed birth rate and aging society, as well as the significance of employment practices regarding the elderly, the young, women and foreigners. It also lists the policies and regulations that Japan has formulated, and explores their effectiveness and flaws. Comparisons are made to related labor policies aimed at stimulating employment in the Netherlands, Sweden, and Germany. Finally, several suggestions are posed to amend the inadequacy of Japanese policies. In hopes of attracting more working people to enter into the labor market, I have based my closing recommendations on providing a better and more thorough hiring system. For example, workers can be offered more options, such as teleworking, shorter and more flexible working hours, and part-time positions. Other issues that cannot be overlooked include improveming child care access and maternity benefits, encouraging active male participation in child care, providing skill development opportunities and employment assistance. I hope to bring more workers into the labor market through the improvement of government policies and hiring environments.
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