Ok it could also mean legislation that allows companies to layoff workers cheaply. But if these workers are laid off cheaply who foots the bill for a 45 year old that can't get a job -the social safety system, meaning the income tax payer principally. Once again corporate tax reform, before anything else, imo is needed and is the missing piece in most developed countries plans.
(I am in favour of super high rates for the rich btw). Japan is a country that values social cohesion, and to maintain social cohesion the state will need to play a bigger role in the future to underwrite labour market risk is they are going to have political reforms that restore competitiveness of Japanese industry.
Much of the recent evidence emerging in trade shows that the rich are not job creators in their own country anymore- they are job offshorers and capital buyers. This is causing extreme income inequality and ultimately if it continues will destabilize these democracies.
Moreoever, intergenerational wealth mobility is decreasing so we can't even argue that life is a lottery where most have a similar chance of success given long grinding periods of hard work. So those that benefit from globalization and technology- the ultra rich and multinationals can and must pay more.