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LOCAL EMPLOYMENT DEVELOPMENT
~ Japan’s Experience ~
Employment Security Bureau,
Ministry of Health, Labour and Welfare,
Government of Japan
Source: Ministry of Internal Affairs and Communications
Migration To Urban Areas
2
 Major population flows into Tokyo metropolitan area
 Mostly youth (15-24yrs)
 Upon entering/graduating from college
(10 thousand)
Tokyo area
Osaka area
Nagoya area
Population flow by age group (Tokyo area in total)
0-9 10-14 15-19 20-24 25-29 30-34 35-39 40-49 50-59 60-69 70-79 80-
2013201220112010
(10 thousand)
Migration Associated With Employment
3
 Population flows into three metropolitan areas, especially Tokyo
Source: “Survey on Employment Trends” , MHLW (2010 to 2012)
4.9
1.1
1.7
-2.8
6.8
4.4
1.0
-7.7
6.7
1.1
2.3
-5.1
-8
-4
0
4
8
東京都 愛知県 大阪府 その他道府県(合計)
H22 H23 H24
TOKYO
201220112010
AICHI OSAKA
OTHERS
Source: “Employment Security Service Statistics” (Quarterly) MHLW
Employment Situations by Region
(vacancy)
Vacancies-to-applicants ratio
Okinawa Pref.
0.65
National average
1.09
Global Financial Crisis Great East Japan Earthquake
 As employment situation recovers from the Global Financial Crisis, the gaps
widen by region
Recovery mainly in
urban areas Tokyo
1.55
Rapid decrease in
job openings
4
Slow recovery in
some regions
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
2008 2009 2010 2011 2012 2013 2014
① Regaining vitality for regional growth
② Overcoming population decline
(1) Good environment for young generation
in employment, marriage and child-rearing
(2) Reverse the Tokyo centralization
(3) Utilize local strengths
① New flow to rural areas
② Creating decent jobs
③ Good environment for the young generation
④ Secure local areas with contemporary standards
⑤ Cooperation among areas
○ Retain population of 100 million in 50 years
(current:130million)
○ Solutions specific to each local area
Aiming at :
Approaches
Abe Administration’s Goals
Overcoming Population Decline & Vitalizing Local Economy
5
 To address difficult regional job market
 Successfully created 106,000 jobs in FY2013
(total budget 135.9billion / US$1.19billion@114.53)
 Can be also applied to local areas with declining population
(Good)EmploymentSituations(Bad)
(Decrease) Population (Increase)
○ Areas with declining
population and lack of
employment
○ Increasing population
and lack of employment
○ Areas with serious labor
shortage due to population
outflow
Regional Employment Measures
Local Employment
Development Subsidies
Direct Employment Creation Fund
6
Direct Employment Creation Fund
Local Employment
Development
Programme (LED)
 Financial & policy support to local job creation initiatives
 Has been successfully carried out in 92 areas since launch of current model
(2012)
 Created 15,000 jobs since 2012
[Cost effectiveness]
FY 2012: 1,593 million (45 areas) 2,601 jobs 610 thousand yen per job
FY 2013: 3,768 million (71 areas) 5,934 jobs 630 thousand yen per job
FY 2014: 5,273 million (92 areas) 6,414 jobs 820 thousand yen per job
(US$7,000)
Job creation at low cost
Contributions to local economic stimulation
Local Employment Development Programme (LED)
What is LED ?
7
8
LED Areas (including old models since 2007)
267 regions
[Requirements]
1. Low regional vacancies-to-applicants ratio (<national average, and ≦1,
≧0.67)
* 1,311areas out of 1,718 are currently eligible (about 76%)
2. To establish a local LED council to carry out the programe
3. Region that has been approved by the Third-Party Committee which is
composed of experts, etc. on the project design that has been proposed
by the region through a competitive system
Each area’s LED plan to be approved by the Committee in MHLW
4. Projects commissioned by the national government for a maximum of 3
years
[Examples]
- Job creation by developing the processed products of local vegetables and
other produces (production and sales)
- Job creation by attracting tourists to local tourism resources
9
MHLW
Local LED Council
ExpertsPrefectural government
Local economic organizationsMunicipal government
Prefectural Labor Bureau
③ Contract① Proposal
Other local stakeholders
④ Implementation
⑤ Evaluation
➁ Selection
Implementation flow of LED
Third Party Committee
*Chair: Professor Yoshio Higuchi,Keio University
10
Working Team of Advisors
- Local government
- Local economic
organizations
- Experts
- Other stakeholders
Role of LED Council
To identify goal and measures
Local
resources
Employment
agenda
(ex.) - Tourist decrease, One-day trip tourist site,
Abandoned shopping districts, Successor problem
- Tourist attractions, festivals and nature
- Rice, local vegetables, local fish
- Labor shortage in the manufacturing, sales, etc.
- Start-ups of new business etc.
Local
agenda
Process to Establish LED Plan
11
Menu
Council implements 4 menus for employment development
① Employment
increasing menu(Seminars for local employers)
- Business expansion
- Renovation
② Human resources
development
(Seminars for local job seekers)
- Skills (customer service skills,
IT, processing skills)
- Business planning skills
③ Employment promotion
- Job fair
- Employment consultations
- On-line information
distribution
(seminar information,
Trainee recruitment ,
Community information)④ Job creation implementation menu
(Employment development efforts)
- Product development by utilizing local resources
- Projects to renovate vacant stores
- Projects for expanding the market for local products
Process to Establish LED Plan ②
12
Menus from ① to ③ and ④ were implemented as separate projects in the old model.
These projects were integrated to be implemented together in the new model started in FY 2012.
This makes it possible to couple the menus, and enable efficient and effective operations.
 Advisors dispatched to local councils at request
 Identify problems and provide advice
Request
Dispatch of the
members
< WT>
○ Advice to councils Proposing regions
Implemented regions
Local council
Supportandevaluation
Requests
Collection of
local information,
etc.
Overview
LED Working Team of Advisors
MHLW
○ Consisting of nine professors
Chaired by Prof. Nishizawa,
Asia University
13
- Advice
- Solutions
- Plan development
- Evaluation
- Evaluate currant status
- Identify problems
- Analysis
- Identify local agenda
- Seek solutions
- Develop plans
Outcome of implemented projects
Aftereffect of direct effects
- Increased employment due to start-ups and business expansions
- Increased employment due to business continuity after the projects end
- Increased employment due to local revitalization
- Employment growth by business expansion in the area
- Employment growth in tourism through tourist increase
- Population increase by stopping outflow for job hunting
Direct effects
Ripple effects
Benefits from LED
- Successful local economic development measures with employment creation
- Contributes to local HRD
- To be applied in counter-attacking local population decline planning to use the project
for the Regional Formation
Conclusion
14
Fukaura Town (Aomori Prefecture)
Population: 9,488
Project period: July 2012 to March 2015
15
Fukaura Town
LED Example
Fukaura Town
15
Aomori City
Scenery of Fukaura Town, Aomori Prefecture (Summer)
16
Scenery of Fukaura Town, Aomori Prefecture (Autumn)
17
Scenery of Fukaura Town, Aomori Prefecture (Winter)
18
Local agenda
- Shrinking population, Ageing, Stagnant primary sector,
Low government investment, Outflow of companies
Losing local vitality
- The Council set the agenda of (ⅰ) promoting integration of
food-related sectors (1, 2, and 3), and (ⅱ) health tourism.
19
Programs ( i ) to (ⅲ) were implemented by targeting employers and job
seekers of the region to develop human resources required to overcome
local challenges
60 people were placed (including at start-ups)
Actions taken
Implementation menu
(ⅰ) Employment increasing
(Seminars for local employers)
- Food-related comprehensive
seminars
- Forest therapy seminars
( ⅱ) Human resources development
(Seminars for local job seekers)
(ⅲ) Employment promotion
(ⅳ) Job creation implementation menu
(Employment development efforts)
- Food sector integration (Food business)
- Forest therapy (Tourism)
20
- Food-related comprehensive seminars
- Food processing technology
- Distribution and sales improvement
- Forest therapists training
- On-line information
distribution
(Seminar information,
Trainee recruitment,
Community information)
Job seekers employed in (ⅳ) Job creation implementation menu.
(ⅳ) Job creation implementation menu
(Employment development efforts)
- Food Sector Integration
Eight processed products using Japanese pepper that grows wild at
the foot of Shirakami mountains, UNESCO World Natural Heritage,
were developed.
- Forest Therapy
Development of model courses in forest therapy.
Monitor tours for travel agents.
21
FOOD
BUSINESS
22
Food Sector Integration Seminar
23
Japanese Pepper Grows Wild at the foot of Shirakami mountains
24
Japanese Pepper Salad Dressing
25
Japanese Pepper Ice cream
Cherry Blossom
and Japanese Pepper Jam
26
Japanese Pepper Oil Japanese Pepper Paste
27
Tasting in a Business Meeting Surveys
28
TOURISM
29
Forest Therapists Training Seminar
30
Model Courses Developed
31
Forest Therapy Site (Summer)
32
Forest Therapy Site (Winter)
33
Guiding Forest Therapy
34
Evaluation from the locals
○ In a severe employment environment, people have an
opportunity to obtain varied knowledge and to exchange
information by participating in seminars on local needs.
○ This project promotes (ⅰ) awareness in local revitalization and
(ⅱ) business expansion, to lead to employment creation
○ Dialogue and cooperation among local stakeholders are a must
to stimulate the region.
○ The project was also useful in motivating local residents to
participate in vitalizing their town.
35

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LOCAL EMPLOYMENT DEVELOPMENT ~ Japan’s Experience ~

  • 1. LOCAL EMPLOYMENT DEVELOPMENT ~ Japan’s Experience ~ Employment Security Bureau, Ministry of Health, Labour and Welfare, Government of Japan
  • 2. Source: Ministry of Internal Affairs and Communications Migration To Urban Areas 2  Major population flows into Tokyo metropolitan area  Mostly youth (15-24yrs)  Upon entering/graduating from college (10 thousand) Tokyo area Osaka area Nagoya area Population flow by age group (Tokyo area in total) 0-9 10-14 15-19 20-24 25-29 30-34 35-39 40-49 50-59 60-69 70-79 80- 2013201220112010
  • 3. (10 thousand) Migration Associated With Employment 3  Population flows into three metropolitan areas, especially Tokyo Source: “Survey on Employment Trends” , MHLW (2010 to 2012) 4.9 1.1 1.7 -2.8 6.8 4.4 1.0 -7.7 6.7 1.1 2.3 -5.1 -8 -4 0 4 8 東京都 愛知県 大阪府 その他道府県(合計) H22 H23 H24 TOKYO 201220112010 AICHI OSAKA OTHERS
  • 4. Source: “Employment Security Service Statistics” (Quarterly) MHLW Employment Situations by Region (vacancy) Vacancies-to-applicants ratio Okinawa Pref. 0.65 National average 1.09 Global Financial Crisis Great East Japan Earthquake  As employment situation recovers from the Global Financial Crisis, the gaps widen by region Recovery mainly in urban areas Tokyo 1.55 Rapid decrease in job openings 4 Slow recovery in some regions 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 2008 2009 2010 2011 2012 2013 2014
  • 5. ① Regaining vitality for regional growth ② Overcoming population decline (1) Good environment for young generation in employment, marriage and child-rearing (2) Reverse the Tokyo centralization (3) Utilize local strengths ① New flow to rural areas ② Creating decent jobs ③ Good environment for the young generation ④ Secure local areas with contemporary standards ⑤ Cooperation among areas ○ Retain population of 100 million in 50 years (current:130million) ○ Solutions specific to each local area Aiming at : Approaches Abe Administration’s Goals Overcoming Population Decline & Vitalizing Local Economy 5
  • 6.  To address difficult regional job market  Successfully created 106,000 jobs in FY2013 (total budget 135.9billion / US$1.19billion@114.53)  Can be also applied to local areas with declining population (Good)EmploymentSituations(Bad) (Decrease) Population (Increase) ○ Areas with declining population and lack of employment ○ Increasing population and lack of employment ○ Areas with serious labor shortage due to population outflow Regional Employment Measures Local Employment Development Subsidies Direct Employment Creation Fund 6 Direct Employment Creation Fund Local Employment Development Programme (LED)
  • 7.  Financial & policy support to local job creation initiatives  Has been successfully carried out in 92 areas since launch of current model (2012)  Created 15,000 jobs since 2012 [Cost effectiveness] FY 2012: 1,593 million (45 areas) 2,601 jobs 610 thousand yen per job FY 2013: 3,768 million (71 areas) 5,934 jobs 630 thousand yen per job FY 2014: 5,273 million (92 areas) 6,414 jobs 820 thousand yen per job (US$7,000) Job creation at low cost Contributions to local economic stimulation Local Employment Development Programme (LED) What is LED ? 7
  • 8. 8 LED Areas (including old models since 2007) 267 regions
  • 9. [Requirements] 1. Low regional vacancies-to-applicants ratio (<national average, and ≦1, ≧0.67) * 1,311areas out of 1,718 are currently eligible (about 76%) 2. To establish a local LED council to carry out the programe 3. Region that has been approved by the Third-Party Committee which is composed of experts, etc. on the project design that has been proposed by the region through a competitive system Each area’s LED plan to be approved by the Committee in MHLW 4. Projects commissioned by the national government for a maximum of 3 years [Examples] - Job creation by developing the processed products of local vegetables and other produces (production and sales) - Job creation by attracting tourists to local tourism resources 9
  • 10. MHLW Local LED Council ExpertsPrefectural government Local economic organizationsMunicipal government Prefectural Labor Bureau ③ Contract① Proposal Other local stakeholders ④ Implementation ⑤ Evaluation ➁ Selection Implementation flow of LED Third Party Committee *Chair: Professor Yoshio Higuchi,Keio University 10 Working Team of Advisors
  • 11. - Local government - Local economic organizations - Experts - Other stakeholders Role of LED Council To identify goal and measures Local resources Employment agenda (ex.) - Tourist decrease, One-day trip tourist site, Abandoned shopping districts, Successor problem - Tourist attractions, festivals and nature - Rice, local vegetables, local fish - Labor shortage in the manufacturing, sales, etc. - Start-ups of new business etc. Local agenda Process to Establish LED Plan 11
  • 12. Menu Council implements 4 menus for employment development ① Employment increasing menu(Seminars for local employers) - Business expansion - Renovation ② Human resources development (Seminars for local job seekers) - Skills (customer service skills, IT, processing skills) - Business planning skills ③ Employment promotion - Job fair - Employment consultations - On-line information distribution (seminar information, Trainee recruitment , Community information)④ Job creation implementation menu (Employment development efforts) - Product development by utilizing local resources - Projects to renovate vacant stores - Projects for expanding the market for local products Process to Establish LED Plan ② 12 Menus from ① to ③ and ④ were implemented as separate projects in the old model. These projects were integrated to be implemented together in the new model started in FY 2012. This makes it possible to couple the menus, and enable efficient and effective operations.
  • 13.  Advisors dispatched to local councils at request  Identify problems and provide advice Request Dispatch of the members < WT> ○ Advice to councils Proposing regions Implemented regions Local council Supportandevaluation Requests Collection of local information, etc. Overview LED Working Team of Advisors MHLW ○ Consisting of nine professors Chaired by Prof. Nishizawa, Asia University 13 - Advice - Solutions - Plan development - Evaluation - Evaluate currant status - Identify problems - Analysis - Identify local agenda - Seek solutions - Develop plans
  • 14. Outcome of implemented projects Aftereffect of direct effects - Increased employment due to start-ups and business expansions - Increased employment due to business continuity after the projects end - Increased employment due to local revitalization - Employment growth by business expansion in the area - Employment growth in tourism through tourist increase - Population increase by stopping outflow for job hunting Direct effects Ripple effects Benefits from LED - Successful local economic development measures with employment creation - Contributes to local HRD - To be applied in counter-attacking local population decline planning to use the project for the Regional Formation Conclusion 14
  • 15. Fukaura Town (Aomori Prefecture) Population: 9,488 Project period: July 2012 to March 2015 15 Fukaura Town LED Example Fukaura Town 15 Aomori City
  • 16. Scenery of Fukaura Town, Aomori Prefecture (Summer) 16
  • 17. Scenery of Fukaura Town, Aomori Prefecture (Autumn) 17
  • 18. Scenery of Fukaura Town, Aomori Prefecture (Winter) 18
  • 19. Local agenda - Shrinking population, Ageing, Stagnant primary sector, Low government investment, Outflow of companies Losing local vitality - The Council set the agenda of (ⅰ) promoting integration of food-related sectors (1, 2, and 3), and (ⅱ) health tourism. 19
  • 20. Programs ( i ) to (ⅲ) were implemented by targeting employers and job seekers of the region to develop human resources required to overcome local challenges 60 people were placed (including at start-ups) Actions taken Implementation menu (ⅰ) Employment increasing (Seminars for local employers) - Food-related comprehensive seminars - Forest therapy seminars ( ⅱ) Human resources development (Seminars for local job seekers) (ⅲ) Employment promotion (ⅳ) Job creation implementation menu (Employment development efforts) - Food sector integration (Food business) - Forest therapy (Tourism) 20 - Food-related comprehensive seminars - Food processing technology - Distribution and sales improvement - Forest therapists training - On-line information distribution (Seminar information, Trainee recruitment, Community information)
  • 21. Job seekers employed in (ⅳ) Job creation implementation menu. (ⅳ) Job creation implementation menu (Employment development efforts) - Food Sector Integration Eight processed products using Japanese pepper that grows wild at the foot of Shirakami mountains, UNESCO World Natural Heritage, were developed. - Forest Therapy Development of model courses in forest therapy. Monitor tours for travel agents. 21
  • 24. Japanese Pepper Grows Wild at the foot of Shirakami mountains 24
  • 25. Japanese Pepper Salad Dressing 25
  • 26. Japanese Pepper Ice cream Cherry Blossom and Japanese Pepper Jam 26
  • 27. Japanese Pepper Oil Japanese Pepper Paste 27
  • 28. Tasting in a Business Meeting Surveys 28
  • 32. Forest Therapy Site (Summer) 32
  • 33. Forest Therapy Site (Winter) 33
  • 35. Evaluation from the locals ○ In a severe employment environment, people have an opportunity to obtain varied knowledge and to exchange information by participating in seminars on local needs. ○ This project promotes (ⅰ) awareness in local revitalization and (ⅱ) business expansion, to lead to employment creation ○ Dialogue and cooperation among local stakeholders are a must to stimulate the region. ○ The project was also useful in motivating local residents to participate in vitalizing their town. 35

Notas del editor

  1. ○ First, I would like to talk about the population and migration in Japan. ○ Japan is divided into 47 prefectures, with the total population about 1.3 hundred million. Population of Tokyo is 13 million. ○ According to the estimation research by the National Institute of Population and Social Security Research (IPSS), with the progressive decline in the birthrate and the growing proportion of elderly people, as well as depopulation in rural areas, the total population of Japan will decline to 97 million people (a fall to less than 100 million) by 2050, and to about 50 million by 2100. ○ In Japan, the rapid progress of migration from the countryside to urban areas and depopulation mainly in rural areas has been a critical issue for taking economic policy and and employment policy into consideration. ○ This shows the status of migration to Tokyo from local areas. ○ Young people from 15 to 24 years of age who are supposed to support the local economy in the future accounted for the majority, and it suggests that they have been moving to Tokyo, taking academic and employment opportunities.
  2. ○ Next, I will show you the migrations that have been occurring for employment opportunity and career change. ○ This shows the number of people moving in and out of other prefectures. ○ Tokyo, Aichi (Nagoya) and Osaka, which are the three largest cities in Japan, have all seen population increases. The rate of migration to Tokyo is particulary remarkable, since it indicates the overconcentration in Tokyo.
  3. ○ Next is jobs-to-applicants ratio. ○ The nationwide number of jobs has rapidly decreased since the Lehman shock in 2009, and the jobs-to-applicants ratio has shrunk to much less than 1. ○ After that, the jobs-to-applicants ratio had recovered gradually as the economy recovered. Impacts on economic recovery by the economic and fiscal policy of the Abe Administration, so-called Abenomics, include an improvement in the employment situation nationwide as seen in a better than 1 jobs-to-applicants ratio as the national average for the most recent quarter. ○ On the other hand, the problem is that the gap between the regions is getting bigger. ○ Prime Minister Abe declared that “The mission of Abenomics is to have economic recovery in all parts of the country, but not a temporary virtuous cycle of the economy”. Employment measures in the regions is becoming increasingly important in terms of this point of view.
  4. ○ The Prime Minister became the general manager of the “Town, people and job creation headquarters” which was launched in September this year in order to cope with big challenges of an unprecedented aging society and population decline. The government is committed to work harder to improve this situation. ○ We have just established a basic target as shown here. We should take initiatives in terms of ① Maintaining of the population of about 100 million in 50 years hence, and ② Resolving issues in line with regional characteristics. ○ “Creating a new flow of people into the regions” and “② Creating jobs in the regions to work with peace of mind” are thought to be important in terms of employment, and specific policies will be initiated based on this policy at this point.
  5. ○ Next, I will talk about the general ideas in the employment measures in Japan. ○ Regional employment measures in Japan have been intensively carried out in a severe regional employment situation, while the jobs-to-applicants ratio remains below the national average. ○ In these regions, the “Local Employment Development Programme (LED)”, which supports the efforts of voluntary job creation by municipalities, and corporate welfare for companies that hire job seekers, along with establishment and improvement of places of business, etc. which I am going to talk about, have been implemented. ○ Human resource development in the required field and job creation initiatives have been implemented supported by the funds established by the prefectures using grants from the national government, because employment measures of the regions should be initiated by focusing on regional issues. ○ 106,000 people found jobs in FY 2013 as an outcome of 135.9 billion yen of policy expenses. ○ The initiatives that have been successfully implemented up to now shall be expanded to the regions with their population decreasing in order to resolve the unemployment issue alongside the population decrease, etc.
  6. ○ LED is a mechanism by which the national government supports main local constituents that are facing employment opportunities, but are motivated for job creation. ○ The national government provides advice and funds to the efforts of motivated job creation through regional economic development. ○ An annual fund of two hundred million yen per region (two hundred fifty million yen in case of several municipalities implementing the project together) is a cap to be provided, but about sixty million yen is the average fund provided (funding amount varies depending on the project scale) ○ Since the new model started in FY 2012, it has been carried out in 92 regions. The project has been carried out in 267 regions including the old model, which started from FY 2007 as seen on page 8. Implemented areas are shown in black. ○ The number of people who were employed through this project from FY2012 to FY2014 was about 15,000 (includes estimation for FY 2014) while the target was about 13,000 which made up 115 percent complete. ○ In terms of cost effectiveness of the projet, job creation expenses per capita were from 600 thousand yen to 800 thousand yen. This shows steady job creation at low cost while making contributions to stimulation of the regional ecomony.
  7. *Use when explaining in page 6
  8. ○ Major requirements of LED are in 1 to 4 as follows: ○ 1 Areas that can implement the LED are required to have a jobs-to-applicants ratio equal to, or less than, the national average in the regions in the most recent year, and the average of the most recent three years. Regions with jobs-to-applicants ratio of 1 or less when the national average exceeds 1, and 0.67 or less when the national average is less than 0.67. At present, 1,311 municipalities among 1,718 meet the implementation requirements, which indicates that 76 % of the regions of Japan can be implemented with LED. ○ 2 As I will explain the details later, the main constituents of LED are the councils that one or more municipalities had established by themselves. ○ 3 Project design that has been proposed by the local councils through the contest system shall be approved by the third-party committee which is composed of experts, etc. in order to carry out LED. ○ If their proposals are approved, projects are given a go ahead as being commissioned from the national government for a maximum of 3 years. ○ The majority of LED implementation cases are the efforts for the food sector and the tourism sector as priority areas. ○ Specifically, with the help of agricultural and fishery products of local resources to develop the processed products, jobs are created by commercializing them. Other cases are creating jobs by attracting tourists utilizing the tourism resources of the region, etc.
  9. ○ I will explain about the implementation scheme of LED. ○ First of all, one or more municipalities need to establish LED council mainly by themselves. Local economic organizations are required to be members of the council, as well as the local Chamber of Commerce and Industry, Chamber of Commerce, agricultural cooperative, fisheries cooperative and tourism association, etc. In addition, any concerned parties of the regions such as prefectural governments, external experts and NPOs, etc. may join the councils. ○ Project design relating to employment measures proposed by the councils are submitted to the Ministry of Health, Labour and Welfaree through the Prefectural Labour Bureau. In formulating of project design, and in addition to the Ministry of Health, Labour and Welfaree as well as the Prefectural Labour Bureau, experts in the Local Employment Development Support WT provide necessary support and advice suitable for the regions respectively. ○ The Third-Party Committee which is composed of experts, and Professor Yoshio Higuchi from Keio University as the chairperson, examine the project designs proposed, and approve those that have a big job creation potential and may contribute to local industries and economical stimulation. ○ After a business design proposal has been approved by the Third-Party Committee, the Prefectural Labour Bureau and the council will enter into a contract to promote the business project. ○ This project is carried out as an entrustment for up to three years, and mid-term evaluation is conducted each year during the project implementation period. The project may be discontinued in the middle of the implementation period in the case of an extremely low progress rate for job creation compared to the goal that was set at the time the proposal was made. During the project implementation period, the national government has been working together with the Ministry of Health, Labour and Welfare, Prefectural Labour Bureau, and the Local Employment Development Support WT that have been providing necessary support and advice suitable for the regions respectively.
  10. ○ Next are the details of how the project is designed. ○ First of all, regional challenges and employment challenges are identified. The relationship between the employment situation and changes in the population structure as well as in the industrial structure need to be understood. Find out if there is any industry which has a big employment potential in particular. If there is no such industry, examine the challenges for creating industries with potential. ○ In this case, environmental changes outside the region shall be looked at to consider the impact on the region. For example, changes in traffic conditions due to opening of a new highway and roadside stations. ○ The purpose of LED is job creation. However, set the “aspirations” unique to a region having a clear goal of what we want to do with the region and what kind of lifestyle and work style we want to have in our communities, based on the environmental conditions inside and outside of the region. ○ In order to achieve the aspirations of the region, examine what local resources can be utilized. Local resources can be ① facilities, things and nature, ② knowledge, history and services, as well as ③ human resources. Existing businesses and outcomes that have been worked on in the regions also become resources. These resources need to be examined whether or not they can be utilized in terms of job creation.
  11. ○ After identifing regional challenges, employment issues and local resources, specific project menus shall be made. ○ LED is composed of mainly four menus from ① to ④. ○ The first menu is the “Employment increasing menu” which targets local employers. Seminars about business expansion, advancing to a new field and starting-ups are planned and held to increase employment opportunities in the regions. ○ The second is the “Human resources development menu” which targets job seekers in the regions. Seminars about what skills are necessary to be qualified to apply for jobs in the regions and business planning skills for the job seekers are planned and held. ○ The third is the “Placement menu” which brings places of business that are participating in the Employment increasing menu, and the job seekers who have been participating in the Human resources development menu together. Job fairs and employment consultations are planned and held. ○ The forth is the “Job creation implementation menu” which takes new approaches to creating jobs. When not enough outcomes are seen from the job creation efforts which have been implemented by the regions, this menu is intended to create new jobs by developing new businesses and products, and providing such know-how widely to the local places of business to expand their business, hence more employment opportunities. It is intended to grow as a so called “seed” of job creation. ○ Effective job creation can be expected by coupling these four menus and implementing them in an integrated manner. ○ It should be noted that, in the old model, the menus from ① to ③ and menu ④ were implemented separately. Both projects were integrated to be implemented together in a new model started in FY 2012. This makes it possible to couple the menus, enabling efficient and effective project operations.
  12. ○ The Local Employment Development Support Working Team is formed by experts as part of LED, as I explained earlier. ○ The Working Team is dispatched upon request when the proposed regions and implemented regions come to face difficulty in solving problems by themselves. The project is supported for smooth and steady implementation by dispatching the members of WT by MHLW to the areas where requested, and issues can be identified from the progress and examinations of the project to provide the necessary advice for the implementations. ○ The Working Team is a newly established system in FY 2013 which makes it its second year this year. 38 regions have been supported by the team so far and send many responses, such as “It was very helpful”.
  13. ○ The impacts from LED are seen as two types of effects as direct effects and ripple effects. ○ As direct effects, ① Increase of employees in the places of business, including start-ups that participated in the Employment increasing menu by expanding business, ② Increase in employment due to the fact that job seekers who have taken the Human resources development menu and the Placement menu were employed by the local places of business, ③ Increase in employment due to the fact that the project has continued to be carried out after the LED period ends, and ④ Increase in employment due to the turn around of the places of business that enjoyed benefits from outcomes developed by the Job creation implementation menu, etc. The number of people who were employed through this project from FY 2012 to FY 2014 was about 15,000 which includes job seekers who are expected to be employed as a direct effect by this project. ① Employment growth in nearby places of business associated with the transaction increase of establishments that benefited from direct effects, and ② Employment growth in tourism-related establishments and increase in the number of tourists due to local information dissemination, etc. are counted as the ripple effects. The number of people who were employed through this project from FY 2012 to FY 2013 was about 50 as the known number as ripple effect of this project. ○ In addition, the project has been helping to prevent depopulation because of the increase of the residents due to increase in employment opportunities. ○ As you can see, LED is a successful example which focuses on employment and regional economic development. You can expect effectiveness from increasing sufficient human resources with good quality. We are planning to use the project for the Regional Formation.
  14. ○ I will show you a specific LED case. ○ Fukaura-machi is located in the south western part of Aomori Prefecture, and is nestled in the Shirakami-sanchi, UNESCO World Natural Heritage Site. Fukaura-machi is a small town with a population of about 9,500 with a temperate climate which is easy to bear. The average temperature in the summer is around 22 ℃ and in winter it is around minus 1 ℃.  * Explain while showing photos on pages 15, 16 and 17. ○ I will talk about the LED approach implemented by Fukaura-machi since July 2012.
  15. ○ The deepest snowfall in Fukaura-machi is 40 cm or more. Snow is called various names such as “Powder snow”, “Firn”, “Feathery snowflakes”, “Melting snow”, “Packed snow”, “Frozen snow”, “Ice snow” and etc.
  16. ○ The overall economy of the town was losing its vitality because of the lack of successors associated with the progression of the depopulation (10,719 in 2008 to 9,488 in 2013), declining birthrate and a growing proportion of elderly people (aging rate of 39.1 % in 2010), downturn of primary industry due to price decrease of rice and fish (The number of people who work in the primary industries: 1,967 in 1990 to 1,092 in 2010 as 45 % of reduction), in addition to withdrawal of companies that have been deliberately attracted to the area and reduction of public works. ○ In order to turn around such a severe situation for the better, “Local sixth sector industrialization” which produces and processes in the region and sells inside and outside of the region to create jobs and income improvement of the workers in the primary industry,“Health mprovement tourism” utilizing the local agricultural products as well as healing effect of rich forest nestled in the Shirakami-sanchi World Heritage site, are needed to be pushed harder.
  17. ○ In order to solve the local problems, Fukaura-machi has planned and implemented the project menus as shown in the diagram started from FY 2012. The outcome is that 60 jobs were created and start-ups begun in the two years of FY 2012 and FY 2013. ○ Specific jobs and start-ups are in manufacturing and sales of processed food which is accounted for the most in the food sector. In the tourism, tour guiding and lodging business is accounted for the majority.
  18. ○ Job seekers who were trained were directly employed in order to exercise ④ Job creation implementation menu, and local food was developed as a new products and sale channel for the products was expanded. ○ Specifically, “Sixth sector industrialization implementation project” and “Forest therapy base utilization project” ○ In Sixth sector industrialization implementation project, eight processed products using Japanese pepper that grows wild at the foot of Shirakami-sanchi, UNESCO World Natural Heritage, were developed, and their commercialization has been initiated, including presentation in business meetings. ○ In the Forest therapy base utilization project, after the development of model courses of forest therapy with an eye to the grand opening in the spring of 2014, and systematic monitor tours for travel companies, commercialization by the travel companies that participated in the monitor tours has been realized. ○ I will explain these two projects more specifically.
  19. First, I will talk about the Sixth sector industrialization implementation project.
  20. ○ The Employment increasing menu and the Human resources development menu target local employers and job seekers to provide seminars related to manufacturing processed food using local recipies, as well as food hygiene and quality control, etc.
  21. ○ In the Job creation implementation menu, new products were developed using local Japanese pepper that grows wild at the foot of Shirakami-sanchi. ○ Japanese pepper is native to Japan, China, East Asian regions such as the Korean Peninsula, and North America. There is a unique flavor to the entire tree, with a tangy sensation of numb pungency. Many Japanese are familiar with this spice as a heritage of Japanese food. It is also said to be effective for increasing the functionality of the digestive system. ○ In Japan, it is a standard to sprinkle Japanese pepper on grilled eel. In addition, Szechuan cuisine of China is well known for its spicy flavor. They also use Japanese pepper for particular recipes. ○ In China, it has been used as an herbal medicine since ancient times, and it has been used in unique ways in order to enjoy its fragrance. They had rubbed the fruit of Japanese pepper into the wall of the living room of the Imperial Palace of the Former Han Dynasty, to keep an elegant scent in the room. By copying this, nobles spread the pepper in their gardens, and wealthy merchants rubbed the pepper on the earthen walls. At the time in China, Japanese pepper seems to have been treated as a symbol of power.
  22. ○ Eight products including Japanese pepper dressing, Japanese pepper ice cream, cherry and Japanese pepper jam, Japanese pepper oil, Japanese pepper paste were developed using this local resource. ○ Local people knew there were wild Japanese peppers in Shirakami-sanchi, but never thought about producing food from it. Naturally grown Japanese pepper in Shirakami-sanchi has scarcity value. Inspections were carried out for the shelf life of the peppers in order to have tourists as customers for these products. ○Design of the packages of the products was done by a designer. * Explain while showing photos on pages 25 and 26.
  23. ○ They are planning to spread Japanese pepper paste gradually outside of the region, but first it has to be rooted in the region in such ways as putting them in noodle soup.
  24. ○ The developed products were presented in the exhibition business meetings held in Tokyo, to conduct consumer research. They were improved based on the results of the research. ○ There is the potential for job creation by these new product developments in the near future.
  25. ○ Next, I will talk about the Forest therapy base utilization project.
  26. ○ In the Human resources development menu, Forest therapists training seminars were conducted for better understanding of new ways of guding which lead to healing obtained by putting oneself in the forest, in the Forest therapy base. ○ Forest therapy base refers to an area where relaxing effect is demonstrated by experts in terms of forest medicine, at the same time, natural and social conditions of the related facilities are in place at a certain level. “Developed forest environment” which can provide forest therapy for better comfort, and “physiological and psychological effectiveness” which is based on evaluations that have determined both to have effects, accreditation can be obtained as certification for a Forest therapy base. “Juni Lake” in Shirakami-sanchi of Fukaura-machi was certified as a Forest therapy base for the first time in Aomori prefecture in March 2013.
  27. ○ Shirakami-sanchi is a mountainous region with a total area of ​​about 130,000 hectares, where valuable nature is preserved as one of the largest virgin Siebold's beech tree forests in the world. Virgin forest of Siebold's beech trees in Shirakami-sanchi has been determined to have an extremely valuable ecosystem that is consistent with the distribution of valuable animals and plants, and was designated as a World Natural Heritage for the first time in Japan in 1993. “World Natural Heritage” refers to universal properties determined under the 'Convention Concerning the Protection of World Cultural and Natural Heritage’, which was adopted by 17th UNESCO General Assembly in 1972. ○ 21 years has passed since Shirakami-sanchi was registered as a World Natural Heritage in 1993, but tourists are no longer attracted to the reputation as a world heritage or Shirakami-sanchi. ○ Because ”Eco-walk” which is a combination of walking and health care has been gaining attention in recent years, four model courses have developed focusing on “health” in an effective combination of snowshoe trekking, spa, and body-friendly food. They have been developed as a project to add new value as a tourism asset with experience using “Juni Lake” in Shirakami-sanchi as Forest therapy trails. ○ General tourists and travel companies were invited as monitors to try out newly developed courses. Travel companies gave them advice, such as “how come you present this healthy food?”, “the scent of the bath salts should not be Lavender. It should be the scent of Siebold's beech trees. Because Fukaura-machi is selling Siebold's beech trees.” They had a harsh opinion from a professional point of view. ○ The travel companies that participated in the monitor tour (JTB, JAL pack, JR East Akita branch, etc.) have been discussing commercialization, while JTB has already printed on their travel brochures. ○ Increase of tourists attracted to the developed model courses, and job creation from that can be expected in the future. * Explain while showing photos on pages 31, 32 and 33.
  28. ○ At last, I will tell you what people in Fukaura-machi are saying. ○ In a severe employment environment, people have opportunities to obtain a variety of knowledge and to exchange information by participating in seminars about local needs and along with the local characteristics, through this project. ○ This project can offer awareness development in local revitalization and contribution to the companies to join new areas, as steady effectiveness in employment development is seen. ○ Dialogue and cooperation with local residents are a must for stimulating the region. Local residents must have the motivation to improve their communities, and it is important to have a mechanism by which governments can back it up. ○ Along with job creation efforts, utilizing this project is effective as an opportunity to rebuild towns in cooperation with residents.   ○ Today, I showed you the implementation case of Fukaura-machi, but the LED’s all over Japan have been deployed by various project menus in accordance with the characteristics of the regions. We are gaining significant employment development effects from these approaches.