The introduction of computers and other microelectronic equipment throughout the Japanese economy has not affected employment negatively, owing to economic growth and the adaptability of the workers and business organizations affected. Because rapid advances in technology are making many specialized skills and areas of knowledge obsolete, it is becoming increasingly necessary to re-educate and retrain the labor force. Schools are now asked to focus on widely applicable theory rather than on specific skills or facts, and to develop students' fundamental scholastic aptitudes, adaptability, and creativity. The skills and knowledge required for work are provided at vocational schools or through internal programs operated by businesses themselves. The changes in the educational system that are necessitated by technological advancement challenge Japanese social and cultural values and will have a significant impact on the country. Data on employment trends in Japan support the arguments made in this paper. Appendixes describe Japan's educational system and the essential characteristics of the employment system in further detail. Forty-four references are provided. (PGD)