Overall Score

6.0 in 2015 6.1
0 2.5 5 7.5 10

Key Finding

A lower long-term unemployment rate and a narrowing of the high-skill industry wage premium have both contributed to the fall in the overall Index score. However, rising job vacancies point to early pressures in the skilled labour market.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
2.9
Labour market
participation
6.0
Labour market
flexibility
6.7
Talent
mismatch
9.8
Overall wage
pressure
8.2
Wage pressure in
high-skill industries
1.0
Wage pressure in
high-skill occupations
7.1

COUNTRY OVERVIEW

View from the ground

Labour market reforms and initiatives are slowly leading Japan in the right direction, however, further changes are required to address ongoing structural challenges. The talent pool is now being supplemented by increased female participation in the workforce; a key opportunity requiring ongoing attention. Wages for temporary workers are rising and skilled migration is being endorsed by the government. Nevertheless, the talent mismatch continues to be one of the main challenges, despite the slight reduction from the highest possible score of 10 last year to 9.8 this year. With the added tension of high overall wage pressure, competition for talent will remain fierce in a challenging labour market.

Marc Burrage, Managing Director, Hays Japan

Marc Burrage, Managing Director, Hays Japan

Country Profile

The Japanese economy expanded very little over the past year.

The GDP breakdown shows a partial recovery in consumer spending and net exports, while business investment exerted a drag on expansion.

On the fiscal side, a stimulus package was approved in August; the package put particular emphasis on ensuring equal pay for equal work and raised the minimum wage.

Other reforms, such as reducing excessive work hours and encouraging telecommuting, aimed at opening up the labour market to women.

Marc Burrage, Managing Director, Hays Japan

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