More temps used but pace slows

The number of workers hired out by temp agencies grew 4.6 percent to a new all-time high of about 3.99 million in fiscal 2008, a labor ministry survey said Thursday.

While the new yearly figure represents the fourth consecutive time the record has been broken, the gain was sharply lower than the 18.7 percent surge seen in fiscal 2007, the annual report compiled by the Health, Labor and Welfare Ministry said.

The poll covered 66,424 offices that submitted employment reports to the ministry between April 1, 2008, and March 31, 2009.

The number of temp workers rose in the reporting year because many companies were actively hiring them before the global economy was rocked by the Lehman Brothers shock in September 2008, a ministry official said.

The tally also includes companies that were unaffected by Lehman's collapse because their fiscal 2008 book-closings took place ahead of the meltdown, the official said.

In the wake of the Lehman shock, many firms intensified moves to terminate or not renew temp contracts — a trend that has morphed into a major social problem. The impact of that response will be prominently reflected in the fiscal 2009 survey, the official said.