The ‘new trinity’ reform of labour markets in Japan

Abstract

This paper discusses the ‘new trinity’ reform of labour markets proposed in 2023, which is an integral part of Japan’s New Form of Capitalism. After providing an overview of the reform’s three components–reskilling/upskilling, inter-company mobility, and job-based employment–it discusses how the reform may contribute to reduction of labour shortages, skill shortages, and inequality among workers. It then assesses challenges to this reform, ways to overcome these challenges, and how Japan may hold answers for other countries facing similar labour market problems.