TOKYO -- Major temp agencies in Japan are asking to charge more for temporary workers they send to client companies, responding to the tight labor market and their own rising costs.
This marks the third consecutive year of such requests by many staffing agencies, including Pasona Group. They seek increases of 2-5% for next fiscal year, just as they did last year. Societal efforts to address disparities between temps and permanent staffers are also a tailwind.
Staffing agencies negotiate charges with each client company. In greater Tokyo, a typical administrative temp fetches 2,100 to 2,300 yen ($18.40 to $20.15) an hour. Agencies including Pasona and Staffservice seek increases of 50 yen to 100 yen. In information technology, an area beset by labor shortages, agencies are asking for 300 yen more for some positions.
Hourly wages offered for temporary administrative positions in the Tokyo, Osaka and Nagoya areas averaged 1,477 yen in January, up 3% from three years before, data from Recruit Jobs shows. Agencies' cost burden is increasing with a regulation introduced last fall that that requires staffing companies to pay workers for time spent on training.
Some client companies have already agreed to pay more. Last year's negotiations resulted in increases in 10-30% of contracts.