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 |  Jun 22 2011, 11:59 AM

Toyota and Honda plan to hire as many as 5,000 temporary workers in Japan for the first time in more than a year as the automotive industry recovers from the March 11 earthquake.

Toyota will be hiring between 3,000 and 4,000 temporary workers from mid-July as the company plans to increase production in October.

This is great news considering Japanese carmakers’ domestic production dropeed 60 percent in April as Toyota’s output in the country plunged 78 percent.

Honda will be hiring 1,000 temporary workers as the company plans to resume normal production numbers as well.

Toyota’s plants suffered a 50-percent production decline in April and May but are running at 90 percent capacity this month. The plan is to reach 100 percent of planned production levels by July.

“Hiring temporary workers shows that the problem with parts supply is being resolved and that the industry is on a solid recovery path,” explained Takeshi Miyao an analyst at the consulting company Carnorama in Tokyo. “There are a lot of back orders and without these additional workers, they won’t be able to catch up fast enough.”

Nissan has also begun hiring around 200 temporary workers to help restore normal production levels.

[Source: Automotive News]