Japan Press Weekly

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2012 September 26 - October 2 [ECONOMY]

Increase in regular employment opportunities will help Japan’s economy recover

Akahata editorial (excerpts)

One third of all workers in Japan are in unstable employment situations or in low-paying jobs as temporary and contract workers who may have difficulty making future plans.

In particular, many young workers are forced to work under contingent job contracts, which could damage Japan’s future. This should no longer be left unresolved.

Cruel cost-cutting efforts in corporations and labor market deregulation have caused an increase in the number of contingent workers since the 1990s. The percentage of Japan’s contingent workforce is around 35%.

The White Paper on Labor and Economy issued by the labor ministry in September reports that many contingent workers receive less than two million yen in annual income and that low-income earners are on the rise compared to five years ago.

Although an increasing number of families are living on the income of a breadwinner whose job contract is unstable, her/his yearly income remains at less than 70% of that for a full-time worker, the White Paper says.

It also illustrates that about 70% of contract workers work in one place for no more than two years.

Only 16.8% of non-regular male workers in their 20s and 30s are married in contrast to 47.6% of regular male workers, indicating that non-regular employment is hampering them from attaining economic self-reliance and having a family.

The White Paper points out that the decline in income is contributing to a decline in demand, and that growth in the number of non-regular workers is leading to more low-income earners. It is notable that the government report recognizes the spread of non-regular job contracts as an obstacle to Japan’s economic recovery and development.

The White Paper recommends that corporations refrain from conducting excessive personnel cuts, replacing regular workers with non-regular ones, and reducing workers’ wages. The Paper instead stresses the need to treat all workers as human resources and a source of domestic demand.

It is obvious that stable employment and an increase in wages will expand domestic consumption and are essential to the revitalization of the Japanese economy.