Key role of private employment agencies in strengthening national labour markets: The Japan way

Japan ratified the Private Employment Agencies Convention, (1997 No. 181) in 1999. As a result, several national laws were amended, including the use of personal data, the expansion of employment placement to most occupations under a licensing system with some exceptions, and the prohibition of any fees charged to jobseekers by employment placement agencies. In addition to better-protecting job-seekers, the ratification of C181 enabled a more significant number of private employment placement agencies to grow, with about 29,000 private agencies matching job-seekers and employers by that time.

Employment situation during the pandemic

Owing to the ratification and implementation of C181, the impact of the COVID-19 pandemic on the labour market in Japan was reduced. Indeed, with the government’s employment subsidies, private employment agencies played a significant role in reducing unemployment. In fact, in 2020, at the time of the pandemic, approximately 630,000 people found employment as ordinary employees through private employment agencies.

National law revising to be in line with the convention

In 2022, the Japanese government revised its national labour laws to ensure that private employment agencies post up-to-date and accurate information when advertising vacancies. They also enhanced the protection of jobseekers’ personal information by making it compulsory for private employment agencies to clearly indicate the purpose of using their personal information. 

Significant impacts after the ratification

Since 2000, when Japan began compiling the data, a total of almost 10 million people have found employment as ordinary employees through private employment agencies. In addition, the total number of temporary and daily employees was nearly 3 million man-days in the same time period.

In 2020, over 600,000  people found employment as ordinary employees through private employment agencies, with ordinary employees indicating a person employed for a fixed term of four months or more or an indefinite period. Furthermore, almost 7 million man-days of daily employees found employment through private employment agencies in that year.

Lesson learned from Japan’s experience of ratification and implementation of the laws

Recognizing the important role played by private employment agencies in protecting workers, Japan ratified C181. The expansion of private-sector employment placement agencies in addition to the existing employment placement by government agencies has made it possible for job seekers and employers to choose from various employment placement agencies that best suit their needs. The strengthening of the labor market has enabled people to find suitable jobs and to choose the way of working that suits them best.  At the same time, various worker protection measures have been implemented to help protect workers from unfair treatment.

To learn more about the Conventions, the ratification, and the support they provide to member States, please read more at ILO Employment Services Portal and/or contact employmentservices@ilo.org.