12,00010,0008,0006,0004,0002,0000(billion yen)1970727173747576787780828486889081798389858792949698200099939795910106081009071112020413Source: Ministry of Finance Budget Bureau, Personnel Expenses for Public Employees FY 2023, p.2 https://www.mof.go.jp/policy/budget/budger_workflow/budget/fy2023/seifuan2023/21.pdfNote 1. Personnel expenses include basic salaries, allowances, and overtime pay, retirement allowances and contributions to the National Public Servants 030514161820202223(FY)1921151710,346.7 billion yen (FY2000)5,258.3 billion yen (FY2023)Mutual Aid Association.Note 2. General and special accounts combined.Note 3. The decrease in FY2003 due to the conversion to a postal public corporation, and in FY2004, due to the incorporation of a national university, etc.(5) Entrance sorting of Careers and Non-Careers and side-by-side promotion based on year of employment If a U.S.-style job classification system had been in place, Japan might have adopted a position system in which open recruitment was used whenever a vacancy occurred. However, by abandoning the introduction of a job classification system, Japan became a closed career system in which new graduates were hired in batches and trained through on-the-job 12Figure 1 Change in personnel expenses for national public employees (initial budgets) Regarding remuneration, the NPA recommendations were not fully implemented until 1970, and public opinion was sympathetic to public employees’ low remuneration. However, once the full implementation of recommendations took hold, public opinion turned harshly against increased remuneration for public employees, and reduction of this remuneration became a political issue during each administrative reform. A prime example is the failure to implement the NPA recommendation in 1982, under the strong influence of the Second Ad Hoc Commission on Administrative Reform. The number of public employees has also been strictly limited. After a large-scale reduction in the 1950s, the number gradually increased, but the Total Public Service Capacity Law was enacted in 1969 to set a ceiling on the total number of full-time national public employees. Under the law, uniform capacity reduction plans were implemented, and the reduced capacity was reallocated due to new administrative needs. Even during periods of high economic growth when administrative needs were expanding, there was almost no increase in the number of full-time employees covered by the Law. After the administrative reforms in the 1980s, the number of employees gradually decreased. Since it is difficult to disregard the NPA recommendations as a compensatory measure for restrictions on basic labor rights, capacity reduction has always been the leading option for reducing personnel expenses. Such capacity reductions were easily justified by the “large room principle” in the Japanese public service. As mentioned above, since a job classification system could not be implemented, duties are assigned on a division basis, which is called the “large room principle”. The assignation of duties among individual employees is fluid, and even when capacity is reduced, the division is required to perform the same or more duties than before by increasing the number of duties per employee in the name of “efficiency”. As a result, the number of public employees in Japan has become one of the lowest in the world in terms of the ratio of public employees to population.
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