Japan's economy minister increases education spending

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To help address the challenges of Japan’s shrinking labor force, the country's Economy Minister, Toshimitsu Motegi, said on Tuesday there would be additional spending for recurrent education, on top of the government’s planned 2-trillion-yen (17.8 billion US dollar) economic package.

Motegi did not say how much would be spent on such education, which is aimed at keeping people involved in the workforce over an ever-longer lifespan, and which he compared to preventative medical care.

“It’s not about how to respond when one becomes unemployed, but rather how to avoid the situation of becoming unemployed,” Motegi told reporters after a regular cabinet meeting.

Educational spending will come on top of an economic stimulus package announced by Japanese Prime Minister Shinzo Abe in September, focusing on subsidizing education, child-care costs, and on boosting corporate investments to improve productivity.

Though Japan's unemployment rate is at one of its lowest points in more than two decades, this does not directly correlate to a well trained labor forced that is using its full potential. While this unemployment figure is mostly credited to a shrinking labor force, many of the available jobs are temporary, pay little and do not require extensive skills or training.

Source(s): Reuters