The COVID-19 shock: continuity and change in labour markets and employment policies in Japan and the UK

This project will compare the labour market impacts and policy responses to the COVID-19 pandemic in the UK and Japan. The COVID-19 pandemic is a sudden and drastic global shock, but has had very different impacts in different labour markets, and this shock will influence future labour market trends even after the immediate health crisis has been resolved. Identifying the similarities and diversity of the impact of the COVID-19 pandemic on the labour market and policy responses, as well as the changes in the perceptions and behaviour of people, companies, and governments, can contribute to finding solutions to the common medium- and long-term problems that predated the COVID-19 pandemic.

In this regard, Japan and UK are two unique and very suitable countries for comparative study in that we observe features of both divergence and convergence in labour markets and policy responses. For example, the characteristics of the labour markets of Japan and UK are very different, but the impact of the COVID-19 pandemic on the labour market was similar in terms of unemployment. By identifying further areas of convergence and divergence, and analysing the effectiveness of policy responses, we will clarify the short-term and long-term impacts of the COVID-19 pandemic on several aspects of labour market and inequality trends; explore whether the COVID-19 shock exacerbated/intensified or mitigated existing megatrends and challenges; and analyse policy implications.