Protecting Jobs and Employment during Disasters: Lessons from Employment Insurance System in Japan

World Bank, Yasuhiro Kawasoe, Masaru Sasaki and Sayuri Nakamura

No 210819, The Social Policy and Labor Discussion Paper Series from The World Bank

Abstract: This paper examines how Japan's employment insurance system adapts to protect jobs and support workers during disasters, offering insights into the design of adaptive social protection systems. The analysis is set against the backdrop of an increasing frequency of disasters and the need for social protection responses to crises to go beyond the traditional use of social assistance. Japan's multi-layered social protection framework uses employment insurance as a primary defense to protect people from crises with a dual support mechanism: unemployment benefits (basic allowance) for displaced workers and employment adjustment subsidies to help employers retain staff during crises. A case study of the 2011 Great East Japan Earthquake illustrates the system's effectiveness. About 51% of the unemployed in the three most affected prefectures received basic allowance benefits. Meanwhile, the Employment Adjustment Subsidies program prevented an estimated 300,000 to 400,000 job losses, demonstrating the critical value of job retention mechanisms. The paper concludes with actionable recommendations for other countries: First, embed flexibility into legal frameworks for rapid crisis response. Second, build strong, coordinated administrative networks. Third, design inclusive programs for vulnerable workers. Fourth, ensure sustainable financing through contributory schemes with government backstops. Japan's experience demonstrates that a well-designed social insurance system can enhance the foundation of disaster resilience.

Date: 2026-05-28
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