Tokyo, Jan. 7 (Jiji Press)–Japanese business leaders Tuesday underlined the need to boost the growth potential of the economy and the international competitiveness of companies in Japan by promoting reforms.
“The key is whether the potential growth rate can be raised, rather than how the economy will fluctuate,” Hiroaki Nakanishi, chairman of the Japan Business Federation, or Keidanren, told a joint New Year’s press conference with other business leaders.
He called for utilizing such digital technologies as artificial intelligence and carrying out employment system reforms by reviewing seniority-based pay scales, in order to promote growth.
Kengo Sakurada, chairman of the Japan Association of Corporate Executives, or Keizai Doyukai, said the conventional employment system has “passed its expiration date,” calling on companies to introduce various employment systems to enhance their international competitiveness.
Meanwhile, Akio Mimura, chairman of the Japan Chamber of Commerce and Industry, said that employment rates among young people are very high in Japan thanks to its recruitment system in which many companies hire new graduates all at once.
He proposed taking into account benefits of the conventional employment system to create better systems.
On the global economy, Nakanishi expressed concerns over Japan’s energy dependence on the Middle East amid intensifying tensions between the United States and Iran.