"What is the Employment Crisis?"... 82% of College Graduates Find Jobs Within Six Months in 'I Nara'

Survey Responses from Next Year's College Graduates
Highest Since 2016... Increasing Every Year
Companies Entering Competition Accelerate Hiring Schedules

As competition for hiring among Japanese companies intensifies, it has been revealed that more than 8 out of 10 prospective university graduates have already secured employment six months before graduation.

According to a survey conducted from the 1st to the 3rd of this month by Recruit Employment Future Research Institute targeting 811 prospective university graduates for next year, 82.4% of respondents said they had already received job offers. NHK reported that the 82.4% employment rate among prospective graduates is the highest since the survey began in 2016. In the survey targeting 2023 graduates, 73.1% had secured employment, and last year, 79.6% had confirmed job offers. This shows a rapid increase in the employment success rate of prospective university graduates over the years.

[Image source=AP Yonhap News]

This is evidence of a severe labor shortage in Japan. In March, Japan’s effective job openings-to-applicants ratio (the number of available jobs per job seeker) was 1.28, the highest level since the COVID-19 pandemic began. A high effective job openings-to-applicants ratio means there are many jobs but few workers.

NHK reported, "According to Japanese government regulations, interviews for hiring prospective university graduates usually start on June 1, but some companies, including large corporations that attract many job seekers, are advancing their hiring schedules." This is interpreted as companies rushing to conduct hiring procedures earlier than others to secure talent amid fierce competition caused by labor shortages.

The labor shortage problem is one of the biggest concerns for Japanese companies. In a survey conducted by Tokyo Shoko Research (TSR) in April, 69.3% of Japanese companies reported suffering from a shortage of regular employees. This is a worsening situation compared to 66.5% a year ago. Large companies reported a 77.6% shortage, while small and medium-sized enterprises reported 68.4%, indicating that large companies are facing even greater difficulties.

This situation is expected to continue for the time being. The employment rate of Japanese university graduates who graduated this spring was surveyed at a record high of 98.1%. This estimate was based on a sample survey of 4,770 students from 62 national, public, and private universities conducted by the Ministry of Health, Labour and Welfare and the Ministry of Education, Culture, Sports, Science and Technology, marking the highest rate since 1997. Based on this, Japanese media reported that companies, which had restrained hiring during the pandemic, are increasing recruitment, suggesting that the employment rate for next spring’s graduates may be even higher.

Prospective graduates who secured jobs early expressed various reactions, such as "It’s nice to have the leisure to finish the hiring process early," and "The early recruitment process interferes with studies," NHK reported.

As of the 1st, 36.6% of respondents said they were still preparing for employment, and it is expected that they will begin active job hunting this month. Takayoshi Kurita, director of Recruit Employment Future Research Institute, said, "Since many companies are highly motivated to hire and still unable to recruit enough personnel, those still preparing for employment should carefully consider their selection criteria and find one workplace that suits them."

Meanwhile, Japanese companies facing severe labor shortages are accelerating measures such as reemploying senior workers while significantly raising salary levels or removing age limits for reemployment.