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The serious problem in Japanese education today is the excess of competition. Although that helps the high standard of Japanese education, it also brings about many difficulties for young people. The competition in the school system is, in general, closely related to the competition in society as a whole, especially in the labour market. The structure of the labour market has a strong influence on competition in the school. For example, the British segmented labour market divides the competition by occupation, and it helps the diversified structure of post-compulsory education/training. Meanwhile, in the Japanese labour market, which is characterised by Japanese-style employment, the competition is little divided by occupation, and this helps the unitary structure of competition in the school. Comparing Japan and Britain, this paper will examine the structural causes of the competition in the school system. [ABSTRACT FROM AUTHOR]