Industry Insights (EN)

2025 OECD Japan Employment Outlook

The Japanese labour market has remained stable. In the 12 months to May 2025, the unemployment rate edged down to 2.5% and is projected to hold steady in 2025 and 2026. The overall employment rate improved by 0.8 percentage points to 62.3%, while the female employment rate grew by one percentage point to reach a record high of 55.1%.

Since the COVID‑19 pandemic, labour market tightness has worsened in Japan. As of Q2 2025, the Bank of Japan’s Tankan survey reports that the diffusion index for employment conditions – a net balance of firms reporting excess labour supply – fell to ‑35 across all industries. It was one of the lowest points over the last three decades, indicating widespread labour shortages.

To promote the uptake of paternity leave and reduce the burden on working mothers, the Birth-Time Childcare Leave Benefit was introduced from October 2022.…

1.       Recent research material from Yuki Orina at the Japan Research Institute regarding Japan Job Market on the Way to Modernisation

a.       The traditional corporate culture in Japan, anchored on lifetime employment and a seniority-based wage system, is gradually being modernized, influenced by the growth strategies under the administration of Prime Minister Fumio Kishida. Policymakers are focusing on promoting upskilling and labor mobility, while companies are raising wages to retain talent and compete with global firms. The increased dynamism of the Japanese labor market could contribute to the long-term growth of the Japanese economy.

b.       According to a 2018 Cabinet Office survey, about 10 per cent of Mid-Career and younger employees felt that it was beneficial to seek new jobs in order to better utilize their talents or were dissatisfied with their current position. A 2021 survey revealed that over 80 per cent of employees aged 25–44 expressed a…

“Narcissism. Overconfidence. Low EQ. Why do we persist in selecting for leadership traits that hamper organizational progress—and leave the right potential leaders in the wrong roles?”

www.mckinsey.com

Narcissism. Overconfidence. Low EQ. Why do so many bad bosses still rise to the top? Psychologist and author Dr. Tomas Chamorro-Premuzic offers some answers.

Follow us on https://www.linkedin.com/company/japanhire-tokyo/ for Regular Market Updates and Check out our Job Blog at https://www.japanhire.tokyo/blog

“Sayonara to the Japanese salaryman”, The ranks of the iconic corporate warrior are thinning as society and the economy evolve…

www.straitstimes.com

The ranks of the iconic corporate warrior are thinning as society and the economy evolve. Read more at straitstimes.com.

Follow us on https://www.linkedin.com/company/japanhire-tokyo/ for Regular Market Updates and Check out our Job Blog at https://www.japanhire.tokyo/blog