The phenomenon of a shrinking population is causing Japanese businesses to face a "lack of available workers."

Within the 12 months leading up to this March, as many as 313 companies in Japan went bankrupt due to labor shortages, more than double the number from the previous year.

In order to attract and retain talent, Japanese companies have begun to accelerate "involution," increasing starting salaries, improving benefits, and reducing working hours...

This graduation season, while many college students in various countries are facing the dilemma of unemployment upon graduation, Japanese college students are troubled by a different issue:

Which of the 4 job offers should I choose?

[In-demand part-time workers]

"Looking around, almost all of my classmates have several job offers in hand, and then they choose the most ideal job for themselves," said 22-year-old Eri, who graduated from college in April this year. She is also facing the challenge of choosing one out of 4 job offers.

When discussing her top priority in selecting a job, Eri said: "It's important to balance work and life, and a high starting salary is also very important. I chose to work here because I heard that my company will increase the starting salary this year and the prospects are promising."

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Data shows that this year, the employment rate of Japanese college graduates has reached a new high of 98.1%, the highest level since statistics began in 1997. The Nikkei Shimbun exclaims:

The "super seller's market" favorable to job seekers has arrived and will continue.In response to the imminent labor shortage, most companies in Japan are actively expanding their recruitment efforts to secure more workers. Mitsubishi UFJ Bank, for instance, announced that it will hire 600 people this year, a 70% increase compared to last year.

"We hope to recruit 120 new graduates in 2025, but this goal is simply unattainable," a recruitment officer from a large retail company told the media, stating that in Japan's labor market, job opportunities are increasing while the number of graduates is decreasing.

This has directly led to many companies starting their recruitment efforts early. Statistics show that as of June this year, 68.2% of undergraduate and master's students who are expected to graduate in 2025, that is, those who are currently in their third year of college and first year of graduate school, have already received job offers.

As one of the countries with the lowest birth rates in the world, Japan had only 758,600 newborns last year, setting a new record low. Former Prime Minister Fumio Kishida stated that the country is "on the verge of being unable to function." His advisor, Masako Mori, warned even more starkly:

"If we continue like this, this country will disappear."

The persistently low birth rate over the years has led to an increasingly scarce labor force in Japan. According to a labor force survey by Japan's Ministry of Internal Affairs and Communications, the number of job seekers in Japan aged 15 and above decreased to 2.33 million in 2023, a direct reduction of 2.97 million compared to 20 years ago.

This reduction is even more severe than being cut in half.

Among the limited population, the aging issue continues to worsen, with 29% of Japan's population now aged 65 and above. That is to say:

Nearly one-third of the entire country is composed of elderly people over the age of 65.

To alleviate the labor shortage, the Japanese government and businesses have no choice but to ask the elderly to re-enter the workforce.In April 2021, the Japanese government revised the "Act on Stabilization of Employment for the Elderly," stipulating an obligation to ensure employment opportunities for those under 70 years old through measures such as extending retirement age, continued employment, and outsourcing contracts.

It is also becoming increasingly common to see Japanese elderly people working beyond the age of 70. According to a report by the Japanese Ministry of Health, Labour and Welfare cited by Nikkei News in 2023:

Out of every 10 companies, 4 employ workers over the age of 70.

However, keeping elderly employees on the job also inevitably harbors risks, such as a higher likelihood of work-related accidents for older workers.

In such an environment, some companies have simply lowered the bar:

Hiring high school students.

Due to their young age and strong plasticity, the group of Japanese high school students is now being regarded as a "golden egg" by an increasing number of companies.

A sightseeing bus company in Machida City, Tokyo, recruited drivers and operations management personnel from high schools for the first time this year. The company's human resources department stated that in the past, they only hired drivers with experience who could work immediately, but this year they expanded their scope to high school students who are at least 19 years old and have a second-class heavy-duty driver's license.

As high school students become more and more sought after, the company promises that after graduates join, the company will provide subsidies and training over several years until they can take on important positions.

"We are also inviting all students and parents interested in the company to visit, allowing young employees to share their stories and enhance the company's attractiveness," said the company's general manager, Seiya Sekiya.When discussing the recruitment of high school students by companies, the general manager lamented: "This may be an issue across the entire industry, but if the number of drivers does not increase, the buses will be driverless, and the company will also be unable to operate."

Not only that, but Japanese companies have already started to extend olive branches to high school students graduating next year. Kita Toshima Industrial High School, located in Itabashi Ward, Tokyo, revealed that as of July this year, they had received recruitment materials from about 200 companies, more than double the number from last year. Among them, there are even some well-known large companies. The person in charge said:

This is something that has never been seen before.

As part of-time workers become "hot cakes," Japanese companies are keenly aware that recruitment cannot rely on waiting; the era when job seekers would actively come knocking on the door is long gone.

**Forced to be the "King of the Roll"**

On a sunny Friday in mid-March, at a large job fair in Tokyo, about 100 companies meticulously set up their booths, with colorful banners vying for the attention of graduates: "Starting salary of 250,000 yen, no transfers" "Over 120 days of paid vacation" "Comprehensive training system" "Implementation of diverse work styles" "Listed on the Tokyo Stock Exchange."

Some people lamented that it doesn't seem like a job fair, but more like the storefront of real estate agents.

Not only in Tokyo, but also at a large job fair at the convention center in the West District of Yokohama City, Kanagawa Prefecture, major companies sent representatives to speak in high spirits, explaining the advantages of their companies and urging the students present to hand over their precious resumes.

Eri observed that the recruitment activities of Japanese companies are now noticeably earlier than before, all to get a head start in poaching talent. This is also the main reason why many students have already secured their jobs a year before graduation.

But for Japanese employers, recruiting people will only become increasingly difficult.In March of this year, statistical data released by the human resources service company Mynavi showed that 75.8% of companies indicated that they were finding it difficult to fulfill their recruitment tasks, stating, "The number and quality of applicants this year are not satisfactory."

Another survey even revealed a pessimistic future trend. More than 80% of businesses believe that hiring graduates will be even more challenging by 2025.

To tackle the top challenge of recruiting talent, major companies in Japan have rolled out significant measures.

Firstly, there is the issue of salary increases. Statistical data indicates that new university graduates who started working in Japan in April 2024 received a starting salary of 226,000 yen (approximately 11,000 RMB), which is a 4.01% increase from the previous year, marking the highest rise in 30 years.

Some companies have gone all out, directly "giving money" to attract university students. Among them, Aisin Seiki, which produces automotive parts, prominently displays the slogan on recruitment websites: "Receive a 1 million yen (approximately 49,000 RMB) signing bonus upon starting work." Japan Information Co., Ltd., located in Nagoya, offers a signing bonus equivalent to 20% of an employee's annual salary, with a cap of 1.5 million yen (approximately 73,000 RMB).

Secondly, there is the issue of promotion. Over the past few decades, it was very common for Japanese companies to prioritize seniority in promotions.

Nowadays, an increasing number of companies have stated that they are eliminating the restrictions on years of service in promotions. Nippon Telegraph and Telephone Corporation has already removed the condition of years of service from its promotion criteria, which means that university graduates in their 20s can also access a fast-track promotion path.Third, fully respect the thoughts of the labor side.

In the past, companies selected from a large pool of job seekers, but now students are also choosing companies. More and more companies choose to seriously listen to the ideas of job seekers, including the type of work they want to engage in and the region where they want to work.

Some students reject job transfers after joining the company, and the company will also indicate in the contract that there will be no transfers after joining.

Fourth, clarify overtime clauses.

Some fresh graduates strongly dislike the overtime culture, so the company promises to eliminate overtime and provide employees with a paid vacation of 129 days a year. If the company really needs overtime, it also needs to seek the voluntary consent of employees, and the overtime pay is tripled.

Fifth, provide better benefits.

The Japanese construction company Sanwa Construction built a five-story employee dormitory in the Yodogawa District of Osaka City. Restaurant, kitchen, sofa, cloakroom, large-screen LCD TV... The facilities are complete. As long as fresh graduates join the company, they can live for free for 5 years.

Not only that, major human resources companies have also begun to offer more detailed training services for corporate human resources departments, including understanding the psychology of young people and using streaming media for recruitment.

Mitsumi Sanmi, established in 1951, mainly engaged in the production of mechanical processing parts and electronic equipment, has always been a company that makes money quietly. But now, they have to be high-profile in order to attract potential talents.

They have also launched a new strategy, building a two-story interactive exhibition in the new headquarters in Tokyo, attracting as many young people as possible to enter the world of manufacturing by displaying the company's products and the science behind them.In addition, they also run TV commercials, sponsor golf tournaments, accept more interviews, and launch YouTube channels... All these efforts aim to increase their visibility among young job seekers as much as possible.

Mitsuyasu Kaiyoma, Chairman of Minebea Mitsumi, said: "Responding to the changes in Japan's labor market has become a matter of life and death for employers."

The Japan Imperial Database Company pointed out that the number of companies that went bankrupt due to labor shortages last year has reached the highest record since data collection began 10 years ago, with as many as 313 companies.

In today's world where talent is the number one resource and the primary productive force, recruiting for many Japanese companies is no longer just about seeking business growth, but a matter of corporate survival.

["No longer living for work"]

Japanese companies are facing increasingly difficult times, while Japanese young people are becoming more and more self-liberated.

Aya Saito, a 25-year-old from Keio University, recently resigned from her company. Two years ago, she joined a large Japanese company as an ordinary employee after graduating from university.

Reflecting on these two years, Aya Saito said she often worked overtime, usually getting home around eight or nine o'clock. After eating fast food bought from convenience stores, she would quickly take a shower and go to bed. Due to the nature of her work, she also frequently traveled for business, and before each trip, she would be anxious about how to reach agreements with business partners and complete tasks.

"No matter how large the company is, I started to think, why am I living this way?"

In the end, Aya Saito decided to resign, "no longer living for work."When Saito Aya's parents heard the news, they were left speechless regarding their daughter's life planning. Especially her father was extremely angry, telling her, "If you give up your job now, you will definitely regret it in the future."

Saito Aya's father is in his early fifties. When he first started working, Japan encountered the bubble economy. After experiencing the economic downturn known as the "Lost Decade," Japan had no time to catch its breath before facing the financial crisis of 2008.

The prolonged recession led to a "job ice age" in Japan that lasted for two decades, affecting the generation of Japanese born between 1970 and 1982 the most.

At that time, Japan gradually became a country that used cheap labor. Lifetime employment, valuing seniority over skills, long working hours, and few vacations gradually became characteristics of the Japanese labor market.

"Shachiku," derived from "company" and "livestock," meaning "company's livestock," first appeared in Japan and then gradually became popular in East Asia.

However, as time passed, the drawbacks of this labor-capital structure began to emerge.

In 2015, a 24-year-old new employee at Dentsu, an advertising company, suffered from depression due to long working hours and ultimately jumped to his death from the employee dormitory in Tokyo. This incident drew Japanese attention to the issue of "karoshi" (overwork death). According to statistics from Japanese labor unions, in 2016, Japanese full-time employees worked an average of 2,000 hours per year, 400 hours longer than Germans and French people.

After a sudden increase in 1998, Japan's suicide rate has remained high. In 2011, 30,651 people committed suicide in Japan, marking the 14th consecutive year since 1998 that the number of suicides exceeded 30,000.

When Japan had a sufficient young population, the aforementioned labor-capital structure could be sustained.

Now, however, the prerequisite no longer exists. Japanese youth are no longer willing to be treated as beasts of burden.Konno Haruki, who researches labor and welfare policies, stated that compared to their parents, today's young people have a strong underlying value that working hard and desperately is laughable. Young people are also less concerned with stability than their parents' generation.

A survey by human resources service company Mynavi showed that among 1,200 students graduating in April next year, "good compensation" (including wages and holiday regulations) is the most important factor in choosing an employer, accounting for 23%. Good "corporate culture" followed closely behind, with "stability" only ranking third.

There are no shortage of young Japanese people who quit their jobs at the drop of a hat.

The book "Quietly Resigning Young People: What to Know Before Talking to Subordinates" points out a phenomenon where young Japanese are using resignation agencies to legally submit resignation applications to distance themselves from poor working environments.

Data from the Japanese Bureau of Statistics shows that in 2023, the number of job changes reached 3.3 million people, and the number of workers wishing to change jobs also broke through 10 million for the first time.

Young people do not want to waste their lives in boring work, but instead want to do what they love.

Three years ago, Yoshiya Taichi changed careers to become an engineer. At that time, he was 28 years old and working as a travel planner at a travel agency in Tokyo.

While working at the travel agency, Yoshiya Taichi used his spare time to self-study computer programming and eventually became a game engineer. Not long ago, he also moved to Osaka, about 500 kilometers away from Tokyo, where he is also an amateur actor at a theater company.

"I value both work and things outside of work," said Yoshiya Taichi, adding that the younger generation wants to live more authentically.The confidence of young people in doing so also comes from the changes in the labor market. In August 2024, the ratio of job vacancies to applicants in Japan was 2.83 times. This means that even if young people resign, they don't have to worry about not being able to find a new job.

The Japanese Ministry of Industry predicts that by 2030, Japan will face more than 500,000 job vacancies, and by 2040, the shortage may reach as high as 11 million, which will bring a great impact and challenge to the economy.

After resigning, Saito Aya's part-time job on YouTube has become her main business. She firmly believes that this form of work is more suitable for her, and now she has become happier. As for her father's lack of understanding, Saito Aya can only think:

Each generation has its own destiny.

And the greatest blessing for this generation of young people is that they have something their parents do not have: choice.

How long the talent competition in the Japanese workplace can last is still unknown, but population shortage is always hanging the "sword of Damocles" over the island country, and it is unknown when it will trigger a new crisis.