Tokyo, March 30 (Bloomberg) -- Fujitsu Ltd. is offering just what Japan's unemployed arelooking for -- jobs. Yet in a nation where 3.2 million people are out of work, the second-biggest computer maker can't find the 300 skilled workers it wants to hire this year. ``There is a talent shortage in Japan,'' said Toshimasa Wada, Fujitsu's general managerfor human resources development, adding the company will probably hire about 280recruits this year, the second in a row it's fallen short of its target. ``We're unable to grabsome business opportunities because we can't get enough good people.'' Few of the legions of unemployed have the skills Fujitsu wants. That's keeping jobqueues long -- the unemployment rate fell to 4.7 percent last month from a record 4.9percent in January -- and holding back companies in an economy the central bank saysis stagnating. Most of the newly unemployed are unskilled workers or middle- aged managers whoexpected to work for the same company for life -- a system that's now cracking under thestrain of a decade-long economic slump. Just ask Akio Semura. Two years ago, his 23-year career in a cement-making unit ofresort operator Joban Kosan Ltd. came to an end when he lost his job. Now, the 49-year-old manages Ristoran Genki Kosaten, a tavern set up by his union tofind jobs for middle-aged men struggling to adapt to life outside the traditional companysystem. Things are so bad, he may soon have to sack some staff at the pub, whose name is aplay on the words restaurant and restructuring.
Engineering Jobs
Japan has a greater need for computer engineers than cement- mixers these days. ``I could easily place 1,000 engineers today,'' said Terrie Lloyd, whose company,Daijob.com Inc., operates one of Japan's largest online recruitment agencies. Lloyd has several clients who have openings for more than 100 engineers each, andevery overseas-based company doing business in Japan has problems recruitingtechnical staff. The biggest shortage is for experienced project managers in areas suchas Java language programming -- used for Web site and cell phone applications -- andadvanced database systems, Lloyd said. ``If companies can't get people they need and they don't have energy, then economicgrowth will stagnate,'' said Hisashi Yamada, a senior economist at Japan ResearchInstitute Ltd. Japan's economy grew at an average pace of 1.7 percent in the 1990s, when not a yearwent by without gross domestic product shrinking for at least one quarter. Over the sameperiod, the U.S. economy grew at an average 3.2 percent rate. The cost of Japan's sluggish and erratic growth can be seen in the steady rise of thejobless rate. In June 1992, Japan's jobless rate was just 2.1 percent; while in the U.S.unemployment was 7.8 percent. The rates converged in October 1998, the U.S. on its way to a 30-year low of 3.9 percent,Japan on its climb to a record high.
Labor Mismatch
Japan is experiencing a so-called ``labor mismatch,'' the gap between demand for skilledworkers and the shortage of capable people. Last month, just 25 percent of jobseekers found work, and 24 percent of jobs advertisedfor the first time were filled, government figures showed. ``Of those who are jobless, I'd say about three-fourths are the so-called mismatchcases,'' said Yamada. ``There's a mismatch in skills, as seen in IT-related industries.There's demand in these areas, but not enough supply. The problems run wider than high-tech industries. For some, the step backward to amore menial job, after spending years rising through Japan's seniority-based promotionsystem to a management role, is a loss of status too great to bear. At the government-run ``Hello Work'' office in Shibuya, one of Tokyo's busiest commercialdistricts, 35,000 people registered for 53,500 new jobs between April and December lastyear. Most of the work was for semi-skilled positions such as clerical staff, said SeiichiHiruma, a manager at Hello Work.
Therapy
Not only do some people lack the skills needed to do a job, they lack the skills to findone. Large-scale sackings are a recent phenomenon in Japan. Already this year,automaker Mitsubishi Motors Co. has announced plans to eliminate 9,500 workers andMycal Corp., the nation's fourth-biggest retailer, said it will cut 2,700. The post-war model of lifetime employment meant workers became proficient doingparticular tasks for a particular company, rather than building skills they could transferfrom one workplace to another. With promotions based on seniority rather than merit,there's even less incentive to change jobs mid-career. That's created opportunities for companies like Drake Beam Morin Japan Inc., Japan'sonly listed outplacement agency, which offers programs to help people who have beenfired find new jobs. ``Outplacement businesses try to teach people how to `sell' themselves,'' said Yamada.``They act as a kind of a therapist.''
Government Measures
Of the more than 3 million unemployed, about 1.3 million were fired or took earlyretirement, estimates Takamasa Onose, a management consultant at DBM. Of thosepeople, only about 10,000 are able to receive outplacement services. The recipients ofsuch help ``are the lucky ones,'' he said. Government efforts to shore up the jobs market have been an expensive flop. In May1999, policymakers announced a 400 billion yen (S3.3 billion) package to create 700,000jobs by March next year. So far, the government says 270,000 jobs have been created.In that time, unemployment has risen by 150,000. Six months later, the government added 300 billion yen for job- related measures and inNovember last year said it will pour a further 65 billion yen into the labor market. Rather than spend money on trying to create jobs that may not be needed, thegovernment should do more to free-up business, economists said. ``The government should do more to push through deregulation so companies can focuson profits,'' said Yasukazu Shimizu, an economist at Aozora Research Institute Ltd.``Only then can they create more jobs. The government should make these efforts beforesimply throwing money at the labor market.''