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 desire to develop their careers independently
c. By 2022, more than half Japanese companies had implemented systems allowing for side jobs and multiple occupations. According to a 2023 survey, 37 per cent of the working population was considering or planning a job change. More than half of those under 34 expressed a desire to change jobs. These data suggest that Japan’s post-pandemic labour market is becoming much more dynamic.
d. The changes are also explained by market shifts such as rising wages and an increased need for digital talent. Nominal wages have been rising since 2023 with the advent of inflation driven by rising energy prices and increasing geopolitical risk. Advances in digitalization have boosted opportunities for higher wages through new technologies and increased competition from global companies for top talent.
https://eastasiaforum.org/2024/07/07/japans-jobs-market-on-the-way-to-modernisation/
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