The recent massive layoffs of temporary employees by blue-chip firms have shocked and scared workers in a nation long known for accommodative labor relations and lifetime employment.
Experts warn this year will see more layoffs that will push the unemployment rate higher, and more regular workers will be targeted.
"The unemployment rate is likely to exceed 5.5 percent, the worst level in history, within a year," said Taro Saito, senior economist at Nippon Life Insurance Research Institute.