Column Finance and the Social Security System 2020.11.06
【Aging, safety net and fiscal crisis in Japan】No.293: Increase in the number of dismissed manufacturing and full-time employees
In this column series, Yukihiro Matsuyama, Research Director at CIGS introduces the latest information about aging, safety net and fiscal crisis in Japan with data of international comparison.
On May 29, 2020, the Ministry of Health, Labour and Welfare began publishing the number of employees who were dismissed due to a business slump caused by COVID-19; the aggregated results have been published on a weekly basis since this date. This information is based on the number of consultations received by prefectural labor bureaus and public employment security offices nationwide. As such, it does not account for all dismissals caused by COVID-19, but it is an important indicator of the impact of COVID-19 on employment.
As shown in Figure 1, the cumulative number increased from 16,723 on May 29 to 65,121 on October 9. As of May 29, the hotel/inn industry had the highest number of dismissals at 3,702 (22.1%), whereas the number of dismissals in the manufacturing industry was relatively small at 2,269 (13.6%). This reflects the fact that the non-manufacturing industry was the first to be hit hard by people refraining from social and economic activities due to COVID-19. However, as of October 9, the largest proportion of the cumulative number, at 11,623 (17.8%), came from the manufacturing industry.
Figure 2 shows the number of dismissals per week divided into regular and non-regular employees. In the early stages of economic stagnation, the dismissal of non-regular employees accounted for the majority (Column No. 263), but since the aggregated results from September 25, the number of dismissals of regular employees has exceeded that of non-regular employees. This implies that if the resolution of the COVID-19 crisis is prolonged, the number of unemployed people who were full-time employees will increase rapidly.
Figure 1: The cumulative number of employees dismissed due to a business slump caused by COVID-19
Source: Ministry of Health, Labour and Welfare
Figure 2: The number of employees dismissed due to a business slump caused by COVID-19
Source: Ministry of Health, Labour and Welfare