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30,000 to lose jobs in Japan?
Fri, Nov 28, 2008
AFP

TOKYO, JAPAN - MORE than 30,000 temporary workers in Japan will likely lose their jobs by next March, a survey showed on Friday, as companies drastically cut costs to cope with the global economic slowdown.

From October to March, 30,067 temporary workers are expected to lose their jobs, the labour ministry said.

That compares to a total of only 2,028 regular employees who will be made unemployed during the same period, it added.

Temporary workers are usually the first to be fired as they have less employment protection than regular employees.

As economic conditions deteriorate around the world, Japanese businesses - particularly export-dependent manufacturers - have responded by slashing jobs to reduce costs.

Job cuts in the manufacturing sector make up two-thirds of the expected job losses, with the number spiking in the industrial pockets of Aichi, Gifu, Tochigi, Nagano and Hiroshima prefectures, the report said.

Aichi prefecture, where auto giant Toyota is headquartered, is expected to see 4,104 losses among temporary workers, it added.

Mitsubishi Motors Corp earlier this week said it would cut 1,100 jobs or third of its temporary workers in Japan. Toyota Motor Corp. said it plans to axe 3,000 jobs - half of its part-time workforce here.

Mazda is scrapping 1,300 temporary jobs and Subaru-maker Fuji Heavy Industries Ltd said it will end contracts for some 800 temporary workers by the end of next month.

Non-regular workers made up a record 36 per cent of the entire workforce in Japan in 2007, the government said in a survey earlier this year.

As Japan exited its decade-long slump, many businesses switched from employing regular workers to cheaper temporary workers.

Non-regular workers are not included in Japan's monthly unemployment report, which showed Friday that the jobless rate fell unexpectedly to 3.7 per cent in October from 4.0 per cent in September.

 

 
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