Japan: Government Considers Ban on Temporary Employment in Manufacturing

The New York Times reports that the Japanese government is considering banning manufacturing firms from hiring temporary employees.  The proposed ban is intended to combat unemployment (which rose to a postwar high of 5.7% in July) and stimulate the economy. After deregulation in 2004, Japanese companies started replacing retirees with temporary workers - mainly younger people - who receive fewer benefits and have less job security.

The ruling Democratic Party, which came into power in September, has taken other measures to bolster the labor market, including:

  • easing conditions under which employers can receive subsidies to keep employees on their payrolls; and

  • pledging to create 100,000 jobs by March 2010.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.