Japan Hiring Market
The fundamental hiring challenge in Japan that every company faces comes down to the size of its available talent pool. Here are a few reasons why the talent pool of viable candidates is so much smaller than you’ll find in other markets.
There are other factors that make hiring in Japan difficult but in the end, the quality of your hires depends on the talent pool you have access to.
We can help you overcome Japan’s talent pool challenge. We have an in-depth understanding of the market. We are well-networked and well-resourced. And we further maximize your access to the talent pool available by limiting the number of searches we work at a given time.
Weak English Penetration
Easily the biggest hiring challenge is that for the majority of your open headcount, you’ll be accessing a talent pool that is just 2-3% of what you’re used to working with in other markets. The reason? Only 30% of Japan’s population speak English at any level at all and only 2-3% are fluent enough to do business in English. Japan is ranked #78 of 112 countries in English ability, and #13 out of 20 in Asia (EF English Proficiency Index).
Tight Labor Market
Relatively few professionals in Japan are looking for jobs at any given time because the standard unemployment rate in Japan has remained steady at around 2.7% for the past 50 years. And this number is lower for industries requiring specialized skills like tech.
Shrinking Working Population
Japan’s working population is small to begin with. Its population birth rate has been declining for decades and so has its working population – by 14% since its 1995 peak and according to the OECD, it’s expected to decline another 20% within the next 19 years.
Labor Immobility
Although slowly changing, Japanese professionals are much less likely to consider regular job movement as the way to build a career. It is a conservative society and that extends to its attitudes about changing jobs.
Slow Social Media Adoption
Less than 2.5% of the population in Japan are registered LinkedIn users — compare that to 55% adoption in the US and 47% in the UK. Active LinkedIn users are much lower. Much of your viable talent pool aren’t paying attention to LinkedIn, or any social network for professionals.
Employer Competition
Japan is a top target for the world’s best companies. Its $5 Trillion GDP, affluent consumer market, well-educated labor market, and willingness to pay a premium for quality are just some of things that make it attractive. However, all of these great companies are competing for the same talent — and there simply isn’t enough talent to satisfy demand. Here, the best candidates will commonly 4-5 job offers from top-tier companies.
Cultural Fit
Relatively few in Japan’s talent pool can successfully navigate the tensions that arise between the expectations of a foreign HQ vs the local culture. What succeeds in the West typically fails in Japan — the personal qualities that are highly valued in Japan can be less impressive to Western employers. It is cliché but true that Japanese are more consensus-oriented and risk-averse. This kind of candidate profile would likely not make it into — or wish to join — a Western firm where more aggressive qualities would typically be required.