In the past few months, companies have started to cut workers to save costs. As well as growing to be a major social issue, slashing temp workers also means agencies dispatching such workers face an increasingly tough time.
"Temp agencies of all sizes are in a difficult situation," said Teruo Kawabe, a representative of Japan Staffing Service Association, an industry group of temp agencies.
Most of the association's members send temp workers to offices rather than factories, where many jobs are being cut, but they, too, are losing contracts, he said.