On Privatization of Employment Exchange Systems

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In the United Kingdom a lot of private employment agencies have been running (in 1994,14,482 agencies). The U.K.is one of the countries which have a few regulation against them among European countries. Generally speaking, many job seekers who want to get white collar job prefer to visit them to the public Jobcenters. However, the private employment agencies have the following weak points. First, they are not willing to help those who get a low wage and disabled persons. Second, during the recession, when job seekers actually increase, some private employment agencies lose clients and they go bankrupt. Third, the private employment agencies tend to run in the big cities like London where economic activities are very active, on the other hand, in the depressed area where depressed industries concentrate and a lot of unemployed people want to find their jobs, few private agencies are seen. In those areas the role of public Jobcenters is very big.In Sweden the public employment services had playd a big role in the labor market. Every company which hires employees must notice the information of job offers to the public employment exchange offices. However, since July 1993 private employment agencies have been permitted to run in the employment exchange services. At present, about 200 to 300 employment agencies are operating in Sweden. The law and regulation against them are quite loose, but, on the other hand, a collective agreement plays a supplementary role and protects temporary employees from abuse by them.In France, we can find some people require the deregulation of the labor market and they claim that the government should permit the private employment agencies to operate in the employment exchange services.I consider that the above mentioned situation in the U.K., Sweden and France which have been promoting the deregulation of the private employment agencies will influence the employment exchange systems in Japan.