Recession in Japan has changed the face of Japanese industrial relations. Part one of the study outlines recent trends in Japanese labour markets, labour law and corporate strategy. It focuses on specific categories of labour such as: white collar workers; women workers; foreign workers; and older workers. The second part examines the changing interaction between the state, management and labour at both the macro and micro level. Topics include: the public sector and privatisation; collective bargaining and joint consultation; and labour-management relations in small firms. Drawing on research from leading Japanese scholars, this study considers the future of industrial relations in Japan in the face of increasing economic pressures.