Labor Market / Temporary Agency Work Market

Number of temporary work agency branches

The number of temporary work agency branches in fiscal 2017 was 62,408. Due to the amendment of the Worker Dispatching Act on September 30, 2015, the temporary work notification system (former special temporary work agency business) was abolished, and changed to a license-based system (temporary work agency business). As a result, in fiscal 2017 the number of licensed (temporary work agency business) agency branches was 25,282, an increase of 3,129 or 114.1% YoY. On the other hand, the number of notification system (former special temporary work agency business) agency branches was 37,126, a decrease of 11,475 or 76.4% YoY.
*As an interim measure, notification system temporary work agency branches were permitted until September 30, 2018, and the number of branches for both license-based and notification system branches are given through fiscal 2018.

Temporary work agency business (former general temporary work agency business)

When employment at a client company is decided, an employment contract is signed between the temporary work agency and the temporary agency worker only for the period of the temporary work. The arrangement in which job seekers register in advance with the temporary work agency and are introduced to job opportunities is called "staffing service on registration basis". In order to operate such a temporary work agency, it is required to obtain a license as a temporary work agency business (former general temporary work agency business - i.e. license based system)

Former special temporary work agency business

A temporary work agency sends their regular worker or full-time contract worker to a client company. As the employment contract between the worker and the agency continues even when the assignment in the client company ends, this is called "temporary agency work service on full-time basis". This type of temporary work agency business was permitted to operate as long as notification was made to the Minister of Health, Labour and Welfare (i.e. notification-based system). However, with the amendment of the Worker Dispatching Act on September 30, 2015, the special temporary work agency business concept was abolished, and combined into the license based system (temporary work agency business). As an interim measure, notification system temporary work agency branches were permitted until September 30, 2018.

[Reference] "Aggregate Results of the Business Reports on Employment Placement Undertakings" by the Ministry of Health, Labor and Welfare

* 1986-1998: Total number of general and special temporary work agencies that are newly approved
1999-: Actual number of temporary work agencies excluding those that stopped operation or did not renew the license

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