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Japan has had the world's second largest economy for decades, but in 2010 may slip to third place in global rankings as China's economy continues to expand. In 2009, Japan's economy is likely to shrink by three percent, while China's is projected to expand by eight percent. The US economy is projected to shrink by almost three percent in 2009, and the EU economy by four percent.

There were a peak 317,000 Brazilians of Japanese descent, Nikkei or Nikkejin, in Japan in 2007. Their number has been shrinking as unemployment increases and the usual six months of unemployment benefits ends. The Japanese government offers Y300,000 to Nikkejin who voluntarily leave and agree not to return to Japan for at least three years.

The Democratic Party of Japan (DPJ) replaced the Liberal Democratic Party (LDP) in elections held August 30, 2009? the LDP had been in power continuously since 1945 except for 11 months in 1993-94. The DPJ promised to raise the child allowance to 26,000 yen ($270) a month to encourage more births, to raise the minimum wage to 1,000 yen ($11) an hour, and to restrict the use of temporary workers in manufacturing.

Korea. The Korean Employment Permit System (EPS) celebrated its fifth anniversary in August 2009 (www.eps.go.kr). Like Japan, Korea initially allowed its employers to recruit and employ trainees from other Asian countries who were paid less than the minimum wage. There were many problems with the trainee system, including employers holding workers' passports to discourage them from running away and earning more as unauthorized workers.

In August 2004, the government-run EPS replaced the trainee system. The EPS admits foreigners as workers entitled to the minimum wage under the terms of MOUs signed with 15 Asian governments. Foreign workers often earn $1,000 a month in Korea with overtime, and there are long lists of foreigners eager to work in Korea. With most recruitment via government agencies in migrant-sending countries, recruitment fees are relatively low.

The EPS is considered a model way for Asian countries to employ low-skilled migrant workers. The EPS recognizes that the foreigners are workers, consults with migrant-sending governments, and is flexible--migrants who lose their jobs in Korea before the end of their contracts can remain up to 60 days and seek another Korean employer. The Korea Immigration Service is expanding services to immigrants (www.hikorea.go.kr).

Temps. Like Japan, Korea was long known for lifetime employment; most workers remained with one company for life, sometimes living in company-subsidized housing and vacationing at company-owned resorts. Over the past 15 years, employers, especially manufacturing firms, have hired more contract workers who are paid lower wages and can be easily terminated.

Most employers use a variety of staffing firms or temp agencies to obtain workers, who are given one-year contracts.

In 2009, about 5.4 million or a third of wage earners in Korea were contract workers. Most earned 1.2 million won ($960) a month compared with $1,600 a month for lifetime employees. Contract workers receive fewer benefits than lifetime employees, and most are not protected by union contracts (Three percent of contract workers and 17 percent of regular workers were union members in 2009).

In a bid to protect contract workers, starting July 1, 2009 Korean employers are required to make contract workers regular or permanent employees after two years or dismiss them. Many employers are dismissing them, prompting the government to try to suspend the law over the opposition of unions. However, most contract workers also favor suspension of the law because unemployment is high and rising.

Choe Sang-Hun, "In South Korea, a New Workers' Grievance," New York Times, July 23, 2009.