Thursday, April 05, 2007

New Labor Law for Part-Timers

The Japan Times has a long, interesting article on the proposed revisions to the Part-Time Work Law. It discusses the status of part-time workers in Japan and why the new law is unlikely to do them much good (as few as 4% or 5% of part-time workers may benefit).

Accurate statistics about the level of part-time work in a particular economy are naturally hard to come by, but it seems the level of about 20% for Japan is not much different than that in the US. The proportion of part-time workers in Japan appears to have risen four percentage points or so in the past 10 years (or to put it in terms that show a substantial increase, the percentage itself has risen about 20%). Over the same period, the US level appears to have been relatively stable.





As shown in the chart above, the decline the permanent full-time workforce has been significant over the past ten years. I think the decline in full-time work is one reason that Japanese consumers remain tentative about spending despite the apparent business recovery.

As the JT article points out, the disparity in wages among those doing the same sorts of work simply on the basis of whether they are classified as part-time or full-time can be enormous. As in the US, this situation causes resentment among part-timers and, while the article does not say so, anger among full-time workers who fear part-timers will take away their jobs.

The beneficiaries, of course, are the employers, who no doubt face tough competition and need to reduce costs. Still, the situation makes one nostalgic for the Henry Ford philosophy of paying workers high wages so they'll have the money to buy your products.

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