9cv9 Research | Asia Recruitment Statistics Series | 2026

Japan Is Short of Workers, and Employers Are Paying for It

Near-full employment, an ageing workforce and the fastest wage growth in 34 years have made 2026 a candidate-driven market. Key figures from 155 recruitment data points.

87%of companies are concerned about talent shortages, the highest in 30 years
2.5%Unemployment rate, 2025
1.18Job openings per applicant, October 2025
48%of companies report a severe shortage of full-time staff

Pay rises at the fastest pace in 34 years

Average wage increase, spring negotiations (Shunto) and forecast

Shunto 2025, all firms
5.46%
Rengo negotiated rate, 2025
5.26%
Shunto 2025, SMEs
5.09%
Forecast wage growth, 2026
3.5% to 4.5%
¥254,228Record monthly starting salary, spring 2026 graduates (+4.9%)
¥1,004National average minimum wage per hour, a record single-year rise
55%of companies plan salary raises in 2026

Where the shortage bites hardest

Job openings per applicant, by sector

IT and telecom (Jan 2025)
7.59
Construction
4.6 to 5.0
Nursing
3.7
All positions (Oct 2025)
1.18

Foreign workers are now a pillar of the labour market

Record 13th year in a row

2.3MForeign workers, October 2024
→
2.6MOctober 2025, up 11.7% year on year
24.8%Share from Vietnam, the largest source country (about 570,000)
26%Share working in manufacturing, the largest sector
1.23MAdditional foreign workers targeted through FY2028
+28.1%Healthcare growth
+22.7%Construction growth
+16.9%Hospitality growth

Talent pipelines are shifting

From graduate-first hiring to mid-career moves

59.9%of companies hired mid-career staff a decade ago
→
79.5%Oct 2023 to Mar 2024
98%Employment rate, March 2025 graduates
140,302New graduates hired in spring 2026 (+11.5%)
~35%of graduates leave their first job within 3 years

Technology and AI talent gap

Demand is outrunning supply, and employers are turning to upskilling

1.3MTechnology positions unfilled in 2026
790,000Projected IT worker shortage by 2030
85%of employers struggle to fill tech roles
97%expect AI to deliver significant strategic value
<40%of organisations have AI skills in house
94%prioritise upskilling to close tech gaps

What candidates expect

Speed, flexibility and transparency decide offers

70%
expect a reply within 48 hours of the first interview
60%
prefer hybrid work
45%
decline offers over poor communication
85%
search for jobs on mobile apps
12 weeksAverage time to hire for a specialist role
¥1.5MAverage cost per mid-career hire
3xmore applicants for employers rated 4.0+ on review sites

Gender and workforce inclusion

Participation is rising, but pay and leadership gaps persist

55.1%Female employment rate, a record in 2025
22%Gender pay gap in 2023, versus an OECD average of about 11%
17.1% to 30.1%Paternity leave uptake, FY2022 to FY2023
118th of 148WEF Gender Gap Index 2025, last in the G7

Four plays for employers in 2026

Drawn from the research conclusions

Pay to competeMatch record wage and graduate salary benchmarks.
Hire fasterShorten the 12-week cycle and answer within 48 hours.
Widen the talent poolAdd mid-career, foreign, female and senior workers.
Upskill and retainInvest in AI training, flexibility and employer brand.