Firms Cutting Jobs amid Virus Crisis on Rise in Japan

Economy Politics

Tokyo, April 29 (Jiji Press)--An increasing number of Japanese companies are dismissing employees after their operations were hit hard by the outbreak of the novel coronavirus.

Such measures are being taken mainly by tourism-related companies struggling with a plunge in demand as people are refraining from going out due to stay-at-home requests by authorities in response to the epidemic.

To prevent an increase in the number of people who lose jobs, the labor ministry is beefing up employment adjustment subsidies to firms that put workers on temporary leave. But applications for the aid program have been slow.

A small company that operates resort facilities in Chiba Prefecture, eastern Japan, dismissed about 30 regular employees, as well as part-timers, at two hotels on April 16.

The manager of one of the hotels said that he was advised by the firm to receive jobless benefits for the time being. The company also said that it will solicit new employees after the coronavirus crisis ends, asking him to apply, according to the man.

[Copyright The Jiji Press, Ltd.]

Jiji Press