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Japan
- Recruitment landscape
- Economic indicators
- Labor market
- Working life
Your global agency guide to...
Japan
Japan, boasting a GDP of $4.2 trillion, ranks as the 4th largest economy globally. Key industries include motor vehicles, electronics, and machine tools. With a low unemployment rate of 2.6%, Japan's labor market is tight, posing recruitment challenges. Japan has a medium number of recruitment agencies, with some industry specialization. The aging population and moderate gender labor gap contribute to a potentially constrained labor supply.
Japan'S
AGENCY LANDSCAPE
1.3K
Agencies operating in Japan
A high number of agencies indicates a mature recruitment industry, marked by strong talent demand, established labor laws and economic stability.
21-28%
Typical fee range
Countries with higher fees imply finding talent is harder to find whilst lower fees indicate a high-volume, commoditized market.
Japan'S
FEATURED AGENCIES
Lugen Japan
Robert Walters
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Japan'S
GROSS DOMESTIC PRODUCT (GDP) RATING
4
WORLD RANKED
Japan ranks 4th in the world by current economic output
$4.2T
NOMINAL GDP (US$)
GDP reflects the overall size and economic strength of the country’s economy.
2
APAC RANKED
Japan is the 2nd biggest GDP in APAC out of 41 countries in the region
GDP GROWTH (%)
The above chart compares how Japan's GDP has grown, compared to the rest of the world and the APAC region in the last 7 years.
Positive growth indicates an expanding economy, while negative growth or recession signifies economic contraction. Strong growth can encourage hiring, but slower growth might lead to freezes or layoffs, influencing talent sourcing as businesses adapt to changing market conditions and demands.
Japan'S
CURRENCY AND CODE
¥
Country currency
JPN
Country ISO code
Japan'S
INFLATION RATE
2.2%
CURRENT RATE
▼1.1% REDUCTION
Inflation represents the rate at which prices rise and purchasing power diminishes. High inflation may prompt employees to seek higher wages, potentially impacting company profitability. This situation could lead to budget constraints or hiring freezes, which might influence talent availability and sourcing strategies.
Japan'S
COST OF LIVING
COST OF LIVING INDEX EXPLAINED
The cost of living has a direct impact on salary expectations and the competitiveness of compensation packages. It can influence the appeal of certain locations-while high-cost areas may attract highly skilled professionals looking for higher salaries, lower-cost areas can appeal to companies looking to minimize salary expenses or candidates seeking a better work-life balance.
Japan'S
LABOUR STATISTICS
126M
POPULATION
With a population of 126,146,099, Japan is a medium sized country by global standards. Japan's youth population is just below the world average, indicating it may face challenges in labor market sustainability over time. The working population in Japan is just below the world average, suggesting potential challenges for the labor market. This may indicate a limited supply of workers to meet economic demands. Japan's elderly population is just above the world average, suggesting a growing dependency ratio, which may strain the labor market.
Japan'S
RELIGION
Religion
In religiously diverse countries, a broad sourcing and engagement approach whilst appealing to inclusive practices resonates with this candidate market. In contrast, in a homogeneous religious environment, understanding dominant cultural norms is often more important when engaging with talent.
Japan'S
UNEMPLOYMENT RATE
2.6%
CURRENT PERCENTAGE
▼0.02% REDUCTION
Japan's unemployment rate is low, suggesting either a booming economy or reliance on foreign labour. Between 2022 and 2023, there was a small decrease in unemployment, suggesting continued economic stability with a slight improvement in job availability
Japan'S
TOP PERFORMING COMPANIES AND INDUSTRIES
Top performing companies
Toyota
NTT
Hitachi
Top industries
Motor vehicles
Electronic equipment
Machine tools
Japan'S
GENDER DEMOGRAPHICS
RATIO OF MALES TO FEMALES (BY AGE)
LABOUR PARTICIPATION BY GENDER (%)
72
/
55
Male | Female
In Japan there is a medium gap in participation rates between males and females, indicating moderate inequality with some progress towards gender parity.
Japan'S
WORKING LIFE
$35K
Average gross annual wage (US$)
This figure represents yearly income before taxes. Higher wage countries are above $50,000 USD. Attracting talent in lower-wage markets can be cost-effective; however, offering above-average compensation may be required for in-demand skills.
$2.9K
Average gross monthly wage (US$)
This figure represents monthly income before taxes. Higher-wage countries typically exceed $4,000 USD per month. Attracting talent in lower-wage markets can be cost-effective; however, offering above-average monthly compensation may be necessary for in-demand skills.
Japan'S
WORKING LIFE
16DAYS
Minimum annual holidays
Minimum annual holidays reflect mandated leave. Hiring in countries with high allowances (over 25 days) will require emphasizing work-life balance when recruiting. In countries with fewer holidays (under 15 days), offering additional leave can enhance recruitment and set the organization apart.
40HRS
Average working full time week
Standard work hours are capped at 40 per week. Overtime is paid at varying rates, with a 360-hour annual limit. Rates increase for night work and hours beyond 60 per month, with higher rates on days off.
Japan'S
TOP BENEFITS
14WEEKS
Maternity leave
Maternity: 14 weeks at 2/3 pay, 6 weeks pre-birth. Paternity: No legal requirement. Parental: 12 months shared, paid at 67% then 50%, extendable to 2 years.
3DAYS
Sick leave
Employees have no legal right to sick leave; it's at the employer's discretion. Deel offers 3 paid sick days.
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