Japan's Temporary Workers

One of the difficulties of managing Japan's 1990s economic crisis was their cultural reliance on lifetime employment. In Japan, workers devote their lives to their employer, as the company is more important than family. In return for their loyalty, workers are essentially guaranteed employment for life.

Japan ramped up temporary worker hiring in the 1990s and this employment shift was credited with helping to pull Japan out of their decade plus spiral. While helping the economy, it caused other problems. There's been a growing income divide that had been unheard of in Japan previously. (Temporary workers are paid 30-40% less than their counterparts). This divide started to cull a second class citizen mentality. Yet, many young Japanese expressed a preference for temporary work as it allowed them to dodge the responsibilities of full-time employees, such as working late each night.

Except, now that the economy is contracting again the temporary workers are the first to go.

At 3.7% Japan's unemployment rate is low compared to the U.S. rate of 6.7%. Both countries are expecting more layoffs in the upcoming months.



http://www.bloomberg.com/apps/news?pid=20601101&sid=ab4g.SY6x5dA&refer=japan
http://www.bls.gov/news.release/empsit.nr0.htm