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The Japanese construction industry is showing a strong enthusiasm for hiring so-called Kogyo High School (technical high school) graduates. On construction sites, Kogyo High School graduates are considered essential personnel and are analyzed to be cost-effective due to their lower wages compared to university graduates. However, despite the relative low wages, the number of students wishing to attend Kogyo High Schools is decreasing, contrary to the popularity of Kogyo graduates in the job market.
The Japanese construction industry is showing a strong enthusiasm for hiring so-called technical high school graduates. The photo is not directly related. [Image source=Getty Images]
On the 17th, the Japanese edition of the American media outlet Business Insider published a contribution by Kenji Takagi, director of Craft Bank’s subsidiary (Craft Bank General Federation). According to the article, the job-to-applicant ratio for junior and senior high school graduates reported by the Ministry of Health, Labour and Welfare in March was 3.5 times, about twice as high as the university graduate job-to-applicant ratio (1.7 times) reported by another survey (Recruit Works Institute). The job-to-applicant ratio is an indicator showing the ratio of job postings to job seekers; the higher the ratio, the more job postings there are per job seeker. Takagi cited other survey results, interpreting that “the job-to-applicant ratio for Kogyo High School graduates was 17.2 times in 2022, which means hiring Kogyo graduates is 10 times more difficult than hiring university graduates.” Kogyo graduates are especially favored in the construction industry, which suffers from a shortage of young workers.
Teachers at two Kogyo High Schools in the metropolitan area said, “The number of companies wanting to hire Kogyo graduates has tripled in the past 10 years, and there are 10 to 15 companies recruiting per student.” They added, “Some graduates find jobs at reputable listed companies and end up working alongside colleagues who graduated from graduate schools.” The reason Kogyo graduates are popular is that they hold relevant certifications in civil engineering, architecture, and construction, and have experience learning practical skills needed on site such as welding and computer-aided design (CAD). Although basic training is necessary due to limited work experience, Kogyo graduates with high practical skills are considered ‘golden eggs’ for companies.
Despite their strong employment prospects, Kogyo High Schools face several challenges. The number of technical high schools nationwide has decreased from 736 schools in the 1970s to 526 schools in 2020, and some schools have not filled their quotas. This is attributed to the difference in starting salaries between high school and university graduates, with an annual salary gap of 1.6 million yen (about 14 million KRW). Some companies, such as Sekisui House Group, raised the starting salary for high school graduates by 11% last year. Even if starting salaries increase, the average salary gap between high school and university graduates is not immediately resolved. There are many calls for changes not only in salary and evaluation systems for new graduates but also for existing employees.
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