"Tied to the Company Yet High Income? Not Really"… Increasing 'Voluntary Non-Regular Workers' in the US and Japan

Trends in the Labor Market Changes After the Pandemic

Amid the global changes in work environments following the pandemic, there is a growing trend, especially in the United States and Japan, of workers voluntarily choosing 'non-regular employment' over 'regular employment.'

Despite high incomes and excellent welfare benefits, the desire for leisure and autonomy has increased. As the perception that it is possible to work at preferred times and sustain a livelihood through part-time work spreads rapidly, analysts say significant changes have occurred in the labor market.

Japan: "I want to work when I want"

A worker at a supermarket in Japan. The photo is not related to the specific content of the article.
Photo by Reuters Yonhap News

In Japan, the number of workers voluntarily choosing non-regular employment is increasing. Why do they choose 'non-regular employment' over regular employment, which offers higher wages and various welfare benefits?

On the 15th, Nihon Keizai Shimbun cited the 2022 labor force survey by Japan's Ministry of Internal Affairs and Communications, reporting reasons for becoming non-regular workers. The top answer, given by 6.79 million people, was "because I want to work when it is convenient for me," an increase of 220,000 from the previous year. Another response was "I can live sufficiently on part-time wages alone."

This contrasts with the past when the main reason was "because there are no regular jobs." More Japanese people now accept non-regular employment as long as they can work at convenient times, even if the job is not stable regular employment. The media stated, "The number of people valuing flexible working styles is increasing." As of last year, Japan had 35.88 million regular workers and 21.01 million non-regular workers.

U.S.: "Living on part-time income is possible"

An employee working at a logistics center in LA, USA. The photo is not related to the specific content of the article.

American workers also prefer part-time work that allows them to work short-term at desired times rather than regular full-time employment.

On the 25th (local time), The Wall Street Journal (WSJ) reported that the number of workers choosing part-time work in the U.S. has exceeded 22 million. This is the highest figure in 28 months since 22.29 million in September 2020. According to U.S. Department of Labor data, the number of temporary workers increased by 1.2 million between December and January last year, of which 857,000 (71%) were voluntary part-time workers.

The U.S. Department of Labor classifies part-time work as working 35 hours or less per week. In January, 16.3% of the 160 million employed people worked part-time. However, the number of voluntary part-time workers was 22.1 million as of January. This exceeds by more than five times the number of workers (4.1 million) who want full-time employment but are working part-time.

Most part-time workers choose part-time work for family or personal 'noneconomic reasons,' not because they cannot find full-time jobs. WSJ diagnosed, "The increase in voluntary part-time workers reflects changes in the U.S. economy and labor market after the pandemic," adding, "Workers are moving to part-time work as they value quality of life and personal values more after COVID-19."

Ronnie Golden, an economist at Penn State Abington, explained, "People may have realized they can live on lower incomes." The increase in young people living with their parents and expanded benefits such as tax credits due to COVID-19 have made it possible to sustain livelihoods with part-time work. Golden said, "Part-time work for noneconomic reasons is spreading faster than expected."

This content was produced with the assistance of AI translation services.