Answer to Question #38747 in Macroeconomics for Faizan Atteeq

Question

In Japan "regular workers" usually have full-time jobs that, in addition to paying full-time Wages, offer health care and retirement benefits , bonuses , Job training, and even guarantees of employment for life. In contrast, "non-regular workers" who often are contract employees placed with firms by employment agencies , earn wages that may only be 40 percent of those paid to regular workers. Non regular employees also no other benefits . Furthermore ,if a company experiences difficult times and must cut labor costs, non regular workers , who account for more than one-third of japanese workers ,are the first to lose their positions.
When the Great Recession engulfed the Japanese economy in the later 2000s, the nation’s unemployment rate rose by 2 percentage points within 6 weeks.The bulk of the Japenese residents who joined the ranks of the newly unemployed were nonregular worker.

Why do you suppose that when regular Japanese employees who have recently lost their positions apply for new jobs , they often