The job openings-to-applicants ratio continues to rise, and it reached 1.6 in 2018 which marks a 44-year high.
As the vision for a smart society has gradually been spreading with the concept of Society 5.0, job openings related to data utilisation, AI development/deployment and infrastructure (e.g. cloud computing) rapidly increased across all industries in 2018. Driven by the development and deployment of IoT technologies such as autonomous driving, smart supply chain and Industry 4.0, there were also an increasing number of job openings concerning the realisation of 5G, the key to developing future communications infrastructure.
Along with the spread of automation through the deployment of cutting-edge technologies such as RPA, robots and machine learning, some companies in 2018 such as large financial institutions started to reduce the number of clerical positions within their organisations in a phased manner. Meanwhile, most companies strived to increase business competitiveness while improving the work-life balance of their employees by improving efficiency in conventional jobs through automation, creating an environment where employees can focus on tasks that are directly linked to profits. In addition, many jobs have been created to take on the development, deployment and management of technologies related to automation, and the demand for human resources is higher than ever with regard to jobs related to building strategies based on data and information—for which expert knowledge and experience are key—as well as jobs where the human element can add value.
In 2018, changes in the industrial structure became evident, as can be seen, for example, from the emergence of the fintech sector. Fintech companies recruited a significant number of former bank employees and application developers that are familiar with cryptocurrency, funds and other finance-related businesses. Many of these companies also increased the number of employees in charge of audits, internal control and compliance in response to cyberattack incidents in the cryptocurrency business. In addition, demand is on the rise for professionals responsible for security or the sale of security products in response to the GDPR.
Regardless of the industry, a rapidly increasing number of companies have been showing interest in securing and utilising data scientists to increase competitiveness in the market. Furthermore, the enactment of work-style reform legislation has been serving as a catalyst to accelerate the use of RPA, robots and machine learning technology to boost productivity. As a result, the demand for engineers, consultants and sales staff who work with these cutting-edge technologies has been increasing. Following such trends, the market pay level for professionals with expertise has continued to rise, and the growth rate is expected to reach a record-high level in 2019.
With the 2020 Olympics approaching, the demand for sales and marketing staff has been increasing in consumer goods and service industries in response to the robust increase in international tourists across Japan. The gap between the supply and demand of Japanese-English bilingual specialists in the hospitality industry has also continued to expand. The implementation of development plans for casino and entertainment facilities as well as their surrounding accommodations, MICE and commercial facilities in response to the enactment of the Integrated Resort Implementation Bill (the “casino bill”) will eventually lead to large-scale activities to recruit bilingual hospitality staff to serve international customers. The increase in demand with regard to other positions, such as sales, marketing and general managers, is expected to result in an intense competition for talent if companies new to the market engage in recruitment activities at the same time.
In addition to the technological innovations mentioned above, there has been an accelerating trend towards globalisation, as can be seen from the expansion of overseas business and the bolstering of overseas offices by Japanese companies, new market entrants, business expansion of foreign companies in Japan and an increase in cross-border M&A. Given such an environment, many companies in a wide range of fields regardless of industry were willing to recruit professionals who are familiar with global business customs and proficient in both English and Japanese. Demand is especially high for such professionals with expert knowledge/skills and experience in a certain industry or job, and as seen in previous years, supply will continue to fall short of demand. Due to the increase in foreign students studying in Japan as well as the improvements to their Japanese language proficiency and academic knowledge, there has been a moderate increase in the recruitment of non-Japanese professionals across a broad range of industry.
Nevertheless, there is still a substantial lack of supply of professionals with an understanding of or experienced in global business, and this has continually been on the rise due to confidence in the market and globalisation. Accordingly, strong candidates are expected to have more opportunity and leverage in the job market in 2019. In order to recruit talented professionals, it will become even more important to not only offer competitive compensation to candidates but also to passionately detail the company’s vision and growth potential, the investment in technological innovation, the potential career path within the company, the opportunities to learn and the appeal of the work during the interview and selection process.
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