Japan recession may worsen with temporary workers taking the brunt

According to the Bank of Japan’s chief economist, the economy is deteriorating at its fastest pace in over 50 years and the recent decline is actually faster than the US.

In the midst of the worst financial crisis in recent times, the central bank’s policymakers have forecast the sharpest decline as exports have fallen drastically resulting in even more aggressive and widespread job cuts.

Japanese carmaker Nissan has today announced that it will have to cut 20,000 jobs worldwide as well as posting a net loss in this financial year.

Following Nissan as part of the collapse in exports Toyota, Panasonic, Hitachi and Sony are all expected to announce further job losses in order to protect their bottom line in these tough trading conditions.

As Gross Domestic Product has fallen by an annual 11.7 percent, it is the nation’s temporary workers that have borne the brunt of the recession.

In a nation where a job for life was a guarantee, the mass job cuts are having wider social implications, although the part-time workforce is still at 17.8 million, short contract workers are being replaced by full-time staff who cannot be made redundant easily.

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