Lifetime employment is a thing of the past... Japan's 990,000 regular employees changed jobs last year, the highest ever

Nikkei: Increase in Job Changes Seen as Positive for Economic Growth
Number of Regular Employees Switching Jobs Hits Record High
Wage Increases Among Younger Workers Drive Trend

Last year, the number of regular employees who changed jobs in Japan reached 990,000, marking the highest figure since comparable statistics have been available in 2012. Local media analyzed this as a "positive influence on economic growth."

The Nihon Keizai Shimbun (Nikkei) reported on the 23rd, citing the Ministry of Internal Affairs and Communications' labor force survey, that the number of people who switched from regular employment at one company to regular employment at another increased by 5% compared to the previous year and rose by 62% compared to 10 years ago. Last year, among regular employees who changed jobs, those aged 25 to 34 were the largest group at 370,000. In contrast, the number of people who moved from non-regular employment to regular employment at another company was 320,000, showing little change compared to 10 years ago.

Tokyo Shinjuku Street, Japan. Photo by EPA Yonhap News

Nikkei explained that some of these age groups overlap with the generation that sought employment during the 2008 Lehman Brothers crisis when new hiring was reduced, stating, "Younger generations tend to see wage increases when changing jobs, which appears to be a factor in their job changes."

Some Japanese companies are increasing mid-career recruitment or promoting wage increases and flexible work systems to prevent labor shortages. The revenue from service fees related to companies assisting with job changes was 770.2 billion yen (approximately 7.5 trillion won) in fiscal year 2022 (April 2022 to March 2023), more than tripling compared to 10 years ago.

Nikkei forecasted that the increase in job changers in Japan, where a lifelong employment culture of staying with one company until retirement has existed, could have a positive impact on economic growth. The newspaper analyzed, "Japan's employment flexibility is among the lowest in developed countries and has been a shackle on economic growth," adding, "When workers at low-productivity companies change jobs, the overall efficiency of the economy improves."