Large Number of People with Disabilities in Japan ‘let go’ from Workplaces as Government-aided Employers Close Down

By Barrier Free Japan, extract from The Mainichi

December 16 2024

JAPAN – A large number of people with disabilities are being let go from workplaces in Japan as government-aided employers which offered them chances to gain skills and knowledge while working have been closing down. The national government should speed up support measures while thinking up systems to protect their employment.

At issue are the “continued employment support type A” businesses used by those with impairments who want to learn skills to get jobs at companies.

Formerly, there were about 4,600 such facilities nationwide. Between March and July this year, this was reduced by more than 160, and around 4,300 people lost their jobs. Usually, between around 1,000 and 3,000 people with disabilities are fired each year, but this year stands greatly apart.

The type A businesses have a duty to sign employment contracts and pay workers at least the minimum wage. The government provides a higher level of support for these compared to “type B” businesses, which involve no direct employer-employee relationship.

Requirements were eased in fiscal 2006, allowing incorporated companies and others to enter the system. Since then, an issue arose in which some businesses that lacked substantial revenue-generating activities profited from financial support without offering tasks to those with disabilities.

By laws and ordinances, the disabled employees’ wages are paid from company business earnings. In order to stop violations of the rules, the government began this fiscal year to lower the amount of support given to these businesses which have been unprofitable for three consecutive years. As a result, many shut their doors.

In a Ministry of Health, Labor and Welfare survey, roughly 20% of those laid off were seeking work as of the end of August. About half had switched to type B businesses, which offer lower pay and mostly simple tasks.