Adjustment Policies in the Japanese Coal Mining Industry During the Period of High Economic Growth – Production Volume Maintenance and Adjustments in Employment

Abstract

The Japanese coal-mining industry underwent adjustment around 1958 with the commencement of a full-scale energy revolution. Government coal policies, which greatly influenced the adjustment process, affected production and employment differently. On the one hand, coal production was maintained at an output level of 55 million tons per year until 1966. This output level was considered a form of ‘social insurance’ to ensure energy security. On the other hand, the number of employees in the coal mining industry decreased by 58 % between 1959 and 1965. This drastic step was unavoidable: to overcome the problems posed by high coal prices, the coal industry needed a rapid increase in productivity. While the adjustment in employment practices contributed positively toward a shift in labor from this declining industry to growth industries, it also had negative consequences including the unemployment of miners and decline of mining districts.