Japanese corporations are relying less on temporary workers from staffing agencies as stricter rules have been introduced governing their use in Japan.
According to the Nikkei news agency, the new regulations bar employing temps for only 30 days or less. This marks the first time that the rules were tightened since the law on temporary workers was introduced in 1986.
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The report added that in the auto sector, Nissan began reducing temps at plants as it cut production after the financial crisis erupted in 2008, eliminating such workers altogether in March 2009. As output recovered, the automaker hired contract workers directly.
Logistics and retail are among the sectors that still depend heavily on temps because their businesses have major ups and downs, the report said. Smaller firms also remain dependent on such workers for flexibility.
An Internal Affairs Ministry study reported about 810,000 temps in the April-June quarter, down about 40% from the same period in 2008, Nikkei added.
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