The government needs to create a social system that gives a second chance to people who drop out of the job market and to entrepreneurs whose businesses have failed, a government panel said in an interim report released Tuesday.

The report, published by the panel led by Chief Cabinet Secretary Shinzo Abe to "promote second chances," is aimed at addressing concerns among voters that Prime Minister Junichiro Koizumi's structural reforms may widen the gap between haves and have-nots.

"We are aiming for a society where those who make efforts are rewarded, and where winners and losers do not remain as they are," Abe told the panel.