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2015 November 4 - 10 [LABOR]

Use of non-regular workers to cut labor costs clarified in government data

November 6, 2015
The percentage of non-regular workers out of the total workforce in Japan for the first time reached 40%, while about 40% of corporations say that they use non-regular workers in order to cut labor costs. This was shown in survey results the Labor Ministry released on November 4.

The Labor Ministry’s “General Survey on Diversified Types of Employment” indicated that as of October 1, 2014, the rate of non-regular employees increased by 1.3% to 40% from the previous survey three years ago, the highest rate since the survey started in 1987.

Within non-regular employment, part-timers comprised the largest share (23.2%), followed by contract workers (3.5%), post-retirement workers (2.7%), and temporary agency workers (2.6%).

In the same survey, the highest number or 38.6% of employers answered that they use contingent workers to economize on labor costs. This corresponds to the survey data that 78.2% of non-regular workers earn less than 200,000 yen a month.

As the reason for choosing non-regular jobs, 37.7% of temps and 31.8% of contract workers said that a non-regular job was the only option available to them. Meanwhile, the ratio of non-regular workers seeking to obtain regular positions to the total number of non-regular workers marked 30.7%, up by 5 percentage points from the previous survey. Among contract workers and agency workers in particular, 53.8% and 48.2% respectively expressed hope of finding regular jobs.

Nevertheless, the Abe administration adversely revised the Worker Dispatch Law in the latest ordinary session of the Diet and is moving forward with a policy that will increase the number of non-regular workers. In the recently released plan to “promote the dynamic engagement of all citizens”, the administration intends to trap women and the elderly in low-paid, unstable employment through a further relaxation in labor laws.

Past related articles:
> Abe seeks to exploit women and elderly for sake of ‘economic growth’ [October 24, 2015]
> Bill depriving temporary workers of hope for full-time positions forcibly enacted [September 12, 2015]
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