1. Japan Labour Shortage;
Is it for real?
How does it play out?
2018 trends

2. Is the job shortage real?
Aging population / 高齢化問題
Declining birthrate / 少子化問題
Fell to 2.8% for the 7th straight year
Improved to
1.50
in 2017
Jobs-to-applicants ratio
Unemployment rate

3. Is the job shortage real? 2018 hiring demand predictions:

4. Is the job shortage real?
Intensified by traditional HC practices
Consensus based decision making
Preference for Male employees
High language barriers
Ingrained ageism
No meritocracy
Unreasonable working hours
What is the government is doing to rectify the situation?
Any implications for the foreign national community in Japan?
Based on our client experience, examine where we are and how far we have to go to achieve the governments goals.

5. First step to solving any problem…. is admitting you have a problem
“The Action Plan for the Realization of Work Style Reform.”
働き方改革の実現・実行計画
Encourage women to return to workforce
Increase Foreign Nationals
Encourage flexible working
Increase
Permanent
Employees
Ensure equal treatment

6. Foreign workers in Japan
1.28 million
(highest)
Legend:
Japanese
Foreigners
Change in number of people who reside in Japan

7. Foreign workers What are they doing about it?
Loosening PR rules
(Japanese Spouse – 3yrs
Highly Skilled Professional – 3yrs)
More Japanese education for Foreign Workers’ children
National Strategic Special Zones Act and Economic Partnership Agreement (EPA)
Main Barrier: Tax law changes
Individual Tax changes: Proposed increase in income tax.
Inheritance tax: Long term residence pay inheritance tax if they gain that inheritance outside of Japan.
Non-Permanent residences: Capital gains tax, property

8. Foreign workers
What we see:
NB, SThree focuses on, bilingual talent.

9. Foreign workers Findings:
Technology sector (especially start-ups) have more flexibility
Japanese nationals overwhelmingly favoured
(external facing positions / HSP)
Govt. proposed changes appear superficial
Most movement will be on lower end of market

10. Female workers who continue working after child birth
65.1%
Mothers who quit work because they find it difficult to balance child care and work
25.2%
Women at work
% of women who are in non-regular employment due to child rearing commitments
25 – 34 Years old
25%
35 – 44 Years old
26%
100,000 quit their jobs to look after a family member
Govt Planned for full enrolment pushed back
Lack of females in leadership roles
Daycare facility issue
Pay parity

11. ¥ Women at work What are they doing about it?
¥1.5 trillion spent in 2017 (Up from ¥885 billion in 2013)
Raising wages of Childcare workers: 2% increase in wages in 2017
Create additional day care facilities for 320,000 children
Strict government guidelines and checks to ensure equal pay for equal work
Helping mothers get back into the work force
Extend maternity leave
More male participation in child raising
Easier access to vocational training for females and people returning to the work force
Increase the number of women in leadership roles.