2026 Hiring and Job Market Trends in Japan: Hospitality, Entertainment and Retail (West Japan)

Expo 2025 ended in October, but the event’s aftereffects are still influencing hospitality hiring in Japan's Kansai region. With staffing needs met prior to its opening, approximately 20,000 temporary workers re-entered the job market after the Expo concluded, quickly filling vacancies at hotels, tourism attractions and travel-related enterprises. As a result, a significant upswing in hiring is unlikely to occur until the next major event or attraction opening – none of which are forecasted in 2026.

Hiring in consumer retail has been slow as well, particularly in the luxury sector where inbound Chinese tourists to Japan have reduced their spending. Department stores are experiencing lower foot traffic and sales from Japanese customers as discretionary spending declines and rising living costs strain household budgets. Combined with corporate cost controls as major luxury houses navigated slower global growth, 2025 became one of the slowest hiring years for consumer retail and luxury sales positions in Kansai.

Human talent to complement AI’s shortcomings in building high-margin client relationships

As Kansai’s hospitality, luxury retail, entertainment and travel-related companies continue to face revenue pressures, many are shifting their focus towards prioritising high-value clients and affluent, high-spending VIPs. Sales professionals who can directly influence high-margin spending through refined communication, cultural sensitivity, and the creation of bespoke experiences will be in high demand. Hiring managers are also looking for candidates with consultative and sales-focused business development experience who can identify client needs and drive strategic growth, providing tailored solutions to build both client trust and new sustainable revenue pipelines.

Although AI is expanding its role in marketing, companies still see strong value in customer experience specialists for tasks where technology falls short, including personalised engagement, conflict resolution and complex problem-solving. Individuals with the ability to handle these responsibilities with authentic empathy and an adaptable attitude will find themselves more highly valued because they can provide organisations with something AI can’t.

In candidate selection, organisations have been making a dual push by hiring both experienced senior professionals – who are becoming more abundant as Japan’s average age approaches 50 – while also aggressively competing for younger candidates. Companies aware of the long-term risks of failing to build future-generation talent pools are offering more attractive compensation packages, flexible working arrangements and accelerated promotion paths to attract capable early-career candidates. This, in turn, is increasing the emphasis on talent retention through clear career progression frameworks, internal mobility opportunities, and promoting employee engagement. Geographically, companies are casting wider nets and paying increased attention to candidates outside of Kansai – especially professionals with roots in the region who are attracted to the idea of returning home for lifestyle, family or cost-of-living reasons.

Flexible work gap putting Kansai companies at risk of missing out on candidates

The large ratio of candidates to vacancies in 2025 kept salary increases modest in 2025, typically around only 5 to 10 percent through job change. With labour still abundant and many organisations looking to control costs, often through part-time and contract-based hiring, we are unlikely to see significant salary increases in 2026 except for candidates with exceptional talent in specialised senior management, luxury sales and high-impact commercial leadership roles.

However, organisations need to be aware that salary remains the top factor in candidates’ decision process, especially with rising living costs in Japan, and that small salary increases will motivate very few qualified professionals to switch jobs. For companies looking to bring high-level candidates onboard from outside Kansai, relocation packages and housing allowances may also need to be included to convince them to make the move.

Non-monetary benefits are critical concerns as well. Candidates are showing a strong preference for positions with clear promotion criteria and opportunities to gain new skills and broader responsibilities. An increasing number of candidates are unwilling to stay in or accept positions where future growth is ambiguous. Many organisations in Kansai will also need to rethink their stance on hybrid and work-from-home arrangements, which remain less common than in Tokyo. This gap creates a competitive disadvantage for companies in Kansai, particularly among younger workers and mid-career professionals with families. Workers already living in Kansai have shown they can be lured to Tokyo for roles that offer flexible working options. Increasing flexibility among Kansai employers is therefore an urgent priority – not only for growing headcounts but also for retaining existing staff.

Whether you’re growing your team or navigating your next career step, our 2026 Salary Survey Guide gives you the insights you need to have the right team in place to keep your business moving forward.

You can access to our Salary Survey Guide (PDF) here.