Reforming Human Capital and Human Resource Management: A bird's-eye view

Author Name TSURU Kotaro  (Faculty Fellow, RIETI)
Creation Date/NO. March 2014 14-P-005
Research Project Reform of Labor Market Institutions
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Amid the rapid aging of its society and intensifying global competition, utilizing its human resources is a significant key for Japan, a nation which lacks relatively in natural resources, to maintain and strengthen its economic dynamism and increase its growth potential. This paper provides a multifaceted and comprehensive view on measures to strengthen human capital and human resource capabilities, from a full lifecycle perspective. It is important to clarify the concrete image of workers' talents or abilities that are demanded by industry and to examine an appropriate educational system that is able to cultivate such abilities. During the course of the employment years, promoting mutual trust inside firms and a long-term commitment to skill development will lead to developing a new work style that can open the door to a bright future for workers. Moreover, elderly human resources should be utilized to promote the skills of young people in their companies or local communities.