Trends in Diversification of Employment Types

Section 2

Employment Types appear to be diversifying in non-regular employment. The percentage of "part-time workers (short hours)" as a part of total number of employees rose during the 1990s, while the percentage of "other (long hours)" rose in the late 1990s. The percentage of "part-time and other workers" holding managerial posts is also on the rise. Part-time workers are now undertaking some of the roles previously assumed to be of regular employees, indicating that they are being essential part of business. The number of contracted and dispatched employees is also increasing.
The number of self-employed and family workers is on the decrease in the medium- to long-term. On the other hand, working styles that offer more flexible working hours and places of work, such as teleworking, SOHO (a non-employed type of teleworking), and NPO work are gaining attention. The number of "freeters" is also increasing.
Internationally, the percentage of part-time workers in Japan is roughly equivalent to the average level of OECD countries for male workers, and slightly above the average level of OECD countries for female workers. In terms of labour mobility, the inflow to non-regular employment is currently increasing due to the strong labour demand for non-regular employment.

Progress in Diversification of Employee
The percentage of "part-time workers" (workers whose weekly working hours are shorter than regular employees) in terms of the total number of employees has risen from 11.1% in 1990 to 22.1% in 2001 (Figure 34 i)). The percentage of "other" (non-regular employees whose weekly working hours are equal to or longer than regular employees) was 2.9% in 1990 and 1995, but rose to 3.9% in 2001 (Figure 34 ii)). Among female "part-time workers", the percentage of those who are working to sustain their living is increasing, suggesting that those working as short-hour part-time workers are increasing due to tight household finances.
The percentage of "part-time and other workers" who hold managerial posts is also rising (Figure 35). Also, 43.2% of establishments stated that the percentage of non-regular employees engaged in the same type of work as regular employees has increased when compared to three years ago. It appears that non-regular employees are now undertaking some of the roles previously undertaken by regular employees, resulting in an increase in part-time workers undertaking key roles.
The number of contracted staff has increased to 1,127,100 in 1999. By type of job , the percentage of contracted staff engaged in specialized or technical work was 40.3% for men and 23.9% for women.
The number of dispatched workers is also increasing, averaging 430,000 in 2002. By gender, male workers accounted for 100,000, female workers 330,000.
Other types of employment include outsourcing, where a part or all of work is contracted out to other company, and in-plant contract service, where certain processes within the plant are contracted out to other company.

Diversification of Working Styles by Employment Types, Working Place and Hours
The number of self-employed and family workers is on the decrease in the medium- to long-term, dropping from 23.12 million in 1955 to 9.75 million in 2002 (Figure 36). Factors behind the decrease in self-employed include the decrease in newly established businesses and the increased numbers of businesses closing. The average age of workers establishing new businesses is rising, suggesting that new businesses is being led by middle-aged and elderly workers who have been made redundant due to corporate restructuring.
In 2002, the number of workers engaged in teleworking for more than eight hours a week (teleworkers), was estimated to be about 4.08 million. Among the advantages of teleworking cited by workers, "no commuting fatigue" ranked the highest, while the most cited disadvantage was "lack of communication with supervisors and colleagues" (Figure 37).
The non-employee type of teleworking is known as SOHO. Providing services from home using telecommunication equipment, under a service contract, is called "work from home". Work from home is used by people who want to accomplish both housework and job, as a way of working flexibly and elastically at their own pace, combined with the cost reduction and outsourcing trends. NPOs and workers collective are also becoming popular as new opportunities of employment.

The "Freeter" Trend
The number of "freeters" was tabulated, for those aged between 15 and 34, school graduates, and the unmarried in the case of women. Furthermore, "freeters" were defined as those (1) who are currently employed and referred to as "part-time workers or arbeit (temporary workers)" at their workplace, or (2) who are currently not engaged in work and neither doing housework nor attending school but wish to be employed as part-time workers. Based on these definitions, the number of "freeters" (average for 2002) was 2.09 million (male: 0.94 million, female: 1.15 million) (Figure 38).
Factors behind the increase in "freeters" include: an increase in the number of school graduates who are not engaged in work and higher job separation rate for young people; the fact that young people do not necessarily have to be regular employees in order to make a living due to the improved economic conditions surrounding them; and an increase in unsatisfactory forms of employment due to the harsh employment environment.

International Comparison of Diversified Types of Employment
In Japan in 2000 the percentage of part-time workers was roughly equivalent to the average level of OECD countries for male workers and slightly above the average level of OECD countries for female workers (Figure 39).

Trends in Labour Mobility
In terms of labour mobility, inflows to non-regular employment are increasing due, at present, to the strong labour demand for non-regular employment. This tendency is particularly prominent among young workers.

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