Japan turns contract workers into permanent staff as labour market tightens

Tight market: Workers assemble indoor units of air conditioners on the production line in Japan. The country has started converting contract and part-time workers into full-time employees due to the tight labour market. — Bloomberg

JAPAN’S labour market is getting so tight that companies are starting to convert contract and part-time workers into full-time, regular employees to prevent them from leaving – a move that could lift wages and spending but squeeze profits.

The trend is a reversal from the decades-long practice here of hiring cheaper contract workers who receive few benefits and are easier to hire and fire. They now make up more than a third of the workforce.