Japan: Rural Areas' Need for Local Employment Strategies

Abstract

In Japan, fiscal measures for expanding public works have played an important role in creating jobs in rural areas. However, as financial conditions have deteriorated, there is less room for increasing regional employment through macroeconomic policies such as greater fiscal spending. Meanwhile, economic globalisation and changes in labour supply are widening divergences among regions. Regional communities therefore have all the more need to take the initiative in implementing employment strategies for creating jobs, developing employability and avoiding skills mismatch. This has implications for the distribution of fiscal resources as well for the technical and strategic capacities at local level.