This report analyses the Japanese locally based employment policy, and suggests implications for the employment policy which corresponds to changes in recent socioeconomic conditions, for example, the worldwide economic downturn, low fertility/population aging, and low carbon/green growth etc. Corresponding to the above changes, the distinguished feature of the employment policy of Japan is locally based: The central government provides a practical guide for local governments to create employment opportunities voluntarily. In addition, it strengthens the financial support for local job creation through special grants.

This suggests that, during the 2009 supplementary budget review, the financial support for 'the Hope Work Project' should be thoroughly checked. Moreover, referring to the Japanese employment policy, particular attention is paid to the following job creation projects: First, the social services, for instance, child-care service or support/nursing service, which have large employment effects, are strengthened. Second, for developing human resources, the investment in education infrastructure and the number of assistance instructors should be increased. As a result of these, many jobs related to the education sector will be created. Finally, through the creation of green industry, the central government should give the people vulnerable to unemployment a better chance to be employed.