[Japan] Workers push salaries higher by job-hopping

In Japan, instances of workers job-hopping are on the rise, new research has revealed, and the trend may be contributing to rising salaries, The Japan Times reports.

According to the job-search website Recruit Agent, the number of people using its site to change from one full-time job to another began to increase in 2022. 

Recruit Agent’s data reportedly shows that the total was up by more than 50 per cent in the July-September quarter of 2024 compared with the same period in 2019.

“It seems the labour market has moved into a new phase, with increased fluidity compared to the past,” Yusuke Aoki - an economist at Indeed Hiring Lab - told The Japan Times.

Job mobility has traditionally been low in Japan due to lifetime employment arrangements and strong labour laws. In recent years, despite lifetime employment ending as a practice and a preference, workers have been reluctant to make a change.

Mr Aoki reportedly suggested that labour shortages might be one of the factors driving workers to seek new opportunities.

Recruit Agent’s data found that the number of openings for engineers, sales and administrative professionals is at an all-time high.

Under these circumstances, more workers appear to be interested in advancing their careers by switching jobs, Mr Aoki said.

Women and workers in their 40s and 50s have been particularly enthusiastic job-hoppers, with the number of people in these categories who changed jobs increasing fivefold over a decade.

“Due to structural labour shortages, the labour market is really tightening. For example, many companies previously focused on recruiting fresh college graduates but they are now eager to hire mid-career and experienced workers,” Kaoru Tsuda - HR research manager at Recruit - told The Japan Times.

“A lot of companies are also motivated to facilitate business transformations or create new businesses. In this context, they want to bring in individuals with diverse experiences from outside.”

Government data shows that the number of employees moving from one full-time position to another full-time position rose to 940,000 in 2023 from 750,000 in 2018.

The data from Recruit Agent found that this job-switching trend has put upward pressure on wages, as the percentage of job-hoppers who received a pay raise of at least 10 per cent in their move is at record highs.

In fiscal 2023, the figure for workers seeing a 10 per cent wage hike was 35 per cent, compared to around 26 per cent a decade before.

Source: The Japan Times

(Quotes via original reporting)

In Japan, instances of workers job-hopping are on the rise, new research has revealed, and the trend may be contributing to rising salaries, The Japan Times reports.

According to the job-search website Recruit Agent, the number of people using its site to change from one full-time job to another began to increase in 2022. 

Recruit Agent’s data reportedly shows that the total was up by more than 50 per cent in the July-September quarter of 2024 compared with the same period in 2019.

“It seems the labour market has moved into a new phase, with increased fluidity compared to the past,” Yusuke Aoki - an economist at Indeed Hiring Lab - told The Japan Times.

Job mobility has traditionally been low in Japan due to lifetime employment arrangements and strong labour laws. In recent years, despite lifetime employment ending as a practice and a preference, workers have been reluctant to make a change.

Mr Aoki reportedly suggested that labour shortages might be one of the factors driving workers to seek new opportunities.

Recruit Agent’s data found that the number of openings for engineers, sales and administrative professionals is at an all-time high.

Under these circumstances, more workers appear to be interested in advancing their careers by switching jobs, Mr Aoki said.

Women and workers in their 40s and 50s have been particularly enthusiastic job-hoppers, with the number of people in these categories who changed jobs increasing fivefold over a decade.

“Due to structural labour shortages, the labour market is really tightening. For example, many companies previously focused on recruiting fresh college graduates but they are now eager to hire mid-career and experienced workers,” Kaoru Tsuda - HR research manager at Recruit - told The Japan Times.

“A lot of companies are also motivated to facilitate business transformations or create new businesses. In this context, they want to bring in individuals with diverse experiences from outside.”

Government data shows that the number of employees moving from one full-time position to another full-time position rose to 940,000 in 2023 from 750,000 in 2018.

The data from Recruit Agent found that this job-switching trend has put upward pressure on wages, as the percentage of job-hoppers who received a pay raise of at least 10 per cent in their move is at record highs.

In fiscal 2023, the figure for workers seeing a 10 per cent wage hike was 35 per cent, compared to around 26 per cent a decade before.

Source: The Japan Times

(Quotes via original reporting)