By: Yoshi Suzuki, Former Labor Attaché, Embassy of Japan
I arrived in the summer of 2020, in the middle of the pandemic. I remember as if it were yesterday that I addressed a virtual board meeting. The exchange of information and interactive discussion in DC LERA was so stimulating and meaningful to me. I would like to briefly describe my impressions after working in DC for three years.
The pandemic hit the U.S. economy hard, with the unemployment rate soaring to 14.7% in April 2020, but it soon recovered to pre-pandemic levels, and the turbulence in the U.S. labor market has been remarkable. From the perspective of Japan, which is generally regarded as stable internationally (not only unemployment rate but also wage increase…), it should be admired the positive aspects of the dynamism of the U.S. economy. On the other hand, it looks like that there appears to be a steadily increasing number of voices in the U.S. that are concerned about the weak safety net for those left behind in the economic growth and calling for policy responses.
In response to these voices, Biden administration has been working to realize various social policies, including labor policies, but the existence of the Senate filibuster etc. has made the hurdles to policy realization through legislation extremely high, forcing the administration to rely on policy tools such as executive order. However, I think this is inextricably linked to the fragility of legal stability and predictability. Stricter scrutiny of administrative authority by conservative federal courts will also affect the policy formation process, and it is likely that even greater caution will be required in the future, not only in terms of policy content, but also in terms of procedures.
The Biden administration’s emphasis on labor unions in its various policies is a major characteristic of its administration, and while it is true that the bargaining power of labor unions and workers has increased under the recent labor market conditions in which workers are dominant, it will take more time to determine whether the trend of decline in labor unions over the medium to long term can be reversed. Whether or not the Democratic Party will be able to retain power and secure a sufficient base of support in the presidential election of 2024 will be the touchstone for the penetration and maturation of the various policies implemented by the Biden administration into the U.S. society.
Although it is difficult to make simple comparisons between Japan and U.S. because of differences in social systems, cultures, and practices, labor policy and labor market trends in U.S., where market functions are strongly activated, can provide hints toward more optimal policy formulation by making Japanese policies more relative. I would like to continue to observe them regularly in the future.
In Japan, I will return to Ministry of Health, Labor and Welfare (MHLW) and be in charge of unemployment benefit planning. Based on the reflections under the pandemic, a number of systemic revisions will be made, including the extension of employment insurance coverage to part-time workers and others.
Leaving DC is excruciating, but I am also excited about my new job.