The impact of Japanese plants on local labour markets

Abstract

Japanese direct investment is assuming an increasing importance in the U.K. economy, especially in the manufacturing sector where Japanese management and manufacturing techniques have aroused particular interest. Until recently this investment in manufacturing has been primarily restricted to plants of an assembly-based nature and Japanese companies have sought out labour markets which best satisfy the needs of this type of operation. However, early signs are appearing which suggest that new Japanese manufacturing investment is becoming increasingly sophisticated. In the light of this emergent trend, this paper uses recent research to draw attention to the labour market problems that are likely to occur as the skill requirements of Japanese employers increase. The paper then concludes by discussing strategies which individual firms should adopt to protect themselves from any consequent labour market disruption.