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Posted in: Lawmakers scuffle over controversial temp worker bill See in context

Gary Raynor at Jun. 13, 2015

It could either develop an international service/IT economy driven by domestic consumption or it could carry on with the now dysfunctional model of manufacturing export driven economy.

I agree with what you say about the intention to make labour costs competitive, but I don't think it's because of decision to choose manufacturing over services in Japan.

The UK chose to concentrate on services, and is now in a very similar situation as Japan (part time workers, no job security). Service jobs can be very easily moved to lower wage countries. For example banks moved their call centres to India. Another example is outsourcing IT projects to India.

In fact the government in the UK has been attempting (mainly unsuccessfully) to revive British manufacturing. However most of the skills are now lost.

But there are now a few examples of companies that are moving manufacturing back to the UK due to a combination of rising costs abroad and the reputational advantages of being able to market a product as being made in the UK (mainly for textiles, clothes etc, not electronics!).

Japan never lost it's manufacturing base, and has millions of people employed in this sector. Japan also has a great reputation for manufactured goods, so surely makes sense to concentrate on this area.

If you compare Japan to the UK, then it becomes evident that the increase in part time jobs and the lack of job security isn't down to the concentration on manufacturing. Instead it's due to general globalisation factors present in both the service and manufacturing industries, and the governments' responses (make workforce more flexible).

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Posted in: Lawmakers scuffle over controversial temp worker bill See in context

Gary Raynor at Jun. 13, 2015 - 08:02AM JST

It could either develop an international service/IT economy driven by domestic consumption or it could carry on with the now dysfunctional model of manufacturing export driven economy.

I agree with what you say about the intention to make labour costs competitive, but I don't think it's because of decision to choose manufacturing over services.

The UK chose to concentrate on services, and is now in exactly the same situation (part time workers, no job security). Service jobs can be very easily moved to lower wage countries. For example banks moved their call centres to India. Another example is outsourcing IT projects to India.

In fact the government in

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