Collaboration Agreement Strengthens Labor Mobility for SMEs in Japan

New Collaboration Agreement to Enhance Labor Mobility

On October 22, 2025, the Industrial Employment Stability Center (IESC) and the National Association of Social Insurance Labor Consultants (NASILC) established a new collaboration agreement. This initiative aims to strengthen their partnership in facilitating labor mobility without unemployment, specifically targeting small and medium-sized enterprises (SMEs) which have been facing intense challenges in the wake of the COVID-19 pandemic.

Previously, in February 2021, IESC and NASILC had signed a joint declaration that focused on maintaining employment for those affected by the pandemic. This involved support through secondment and other labor mobility measures. However, as support targeting COVID-19 concludes, SMEs are still reeling from rising raw material costs, increased labor expenses, and a critical labor shortage that poses significant risks to their operations. The new agreement serves as a response to these evolving difficulties.

Key Areas of Cooperation

The renewed cooperation centers around four main areas, to better support SMEs:
1. Information Sharing: IESC will provide NASILC with relevant information regarding secondments, transfers, and the management of reemployment support for seniors (Career Talent Bank). In turn, NASILC is committed to enhancing understanding among local social insurance labor consultants about IESC's initiatives through their respective prefectural associations.
2. Client Engagement at Local Level: At the community level, individual consultants will be encouraged to recommend IESC's services under specific circumstances, including when client companies need to secure talent, are forced to lay off employees, or are experiencing temporary overstaffing. Upon receiving requests from business owners, IESC will swiftly initiate necessary support.
3. Consultation on Employment Grants: During site visits, if business owners inquire about government initiatives related to employment assistance grants, IESC will recommend the engagement of social insurance labor consultants as required.
4. Regular Information Exchange: To ensure sustained and smooth communication, both organizations will engage in regular information exchange both at national and local levels, fostering a seamless collaboration.

The focus of this collaboration aligns with the intention to create strategies that will mitigate risks related to hiring and maintaining labor forces within SMEs. It recognizes the dynamic nature of Japan's workforce landscape.

Conclusion

This agreement represents a vital step forward in reinforcing the support system for SMEs, providing them with the necessary resources to navigate labor challenges effectively. As they work together, IESC and NASILC aim to create a more resilient employment structure that ensures every worker finds their place in the evolving job market. The cooperative efforts of these two organizations are not only commendable but necessary for safeguarding employment across Japan's diverse economic landscape.