A record one-third of college seniors in Japan have yet to find jobs, prompting government leaders to announce new measures to help job seekers. Contrast that to three quarters of United States college seniors unable to get jobs by graduation day.
The Japanese Labor ministry said it would boost efforts to support job seekers, while companies that hire students would receive a three-month, $1,200 subsidy for each graduate. While that would be fantastic for college graduates in the US, would it really increase the number of graduates that are hired or would it end up giving a subsidy to the firms that already hire?
Japan’s unemployment rate stands at five percent – a high number, historically.
Economists say companies are reluctant to add new jobs because of the costs that come with them. Each hire is seen as a lifetime commitment, because labor laws make it difficult to fire workers in Japan.
One angle would be to offer this to small businesses that do not traditionally hire college graduates. What do you think?