Freeters' consumption patterns

The business daily Nikkei has published a study of consumption patterns of freeter and regular workers. Freeter (often translated as freelance part-time workers) are generally defined as people between 15 and 34 who, after finishing education, do not enter a company as a regular employee but instead work as temporary staff or continue working in "student-type" part-time jobs. The number of freeter is estimated at about 4 million people, but some forecasts predict this number to rise to 10 million in 2014.

There is an ongoing debate whether freeter choose this lifestyle or it is forced on them as companies cut recruitment for new graduates and shift jobs to temporary staff. According to the above survey, the majority of freeter choose this lifestyle in order to have the time and resources to "pursue their dreams". However, freeter pay for their additional free time with considerably reduced income and career prospects. So how does this impact their lifestyle and consumption preferences?

Among the major findings of the survey are:

• Consumption by freeter is focused on their hobbies and dreams.
• Despite their lower income, freeter and regular employees spend similar amounts (in absolute numbers) on fashion, but purchase in very different locations.
• Monthly expenses for leisure are also surprisingly similar, but spent on different kinds of products.
• The activities of freeter are more focused on their immediate neighbourhood.

The results are interesting not only because they provide new and unexpected insights into the freeter lifestyle, but also because they shed light on a more general shift: the changes in consumption patterns resulting from the casualization of the Japanese labor force.

An increasing number of Japanese companies, both start-ups and large companies, have discovered this market and have developed products and services ranging from employment agencies to financial services targeted to freeters.