Big Japanese companies are increasing the hiring of college graduates for the first time in four years as the economy recovers from a pandemic slump and a labor shortage intensifies competition for talent.
According to a survey by the financial newspaper Nikkei, graduating seniors who have accepted job offers, including those finishing graduate studies, is up 5.7% to 116,079 this year.
The increase, said Nikkei, is due partially to a slowdown of hiring freezes during the height of the pandemic. At the same, companies are turning to new graduates to fill holes as more young workers leave for other jobs.
Student recruitment in nonmanufacturing sectors has picked up for the first time in four years, with a four per cent gain. Meanwhile, the hotel and travel industry is seeing a sixfold surge, and restaurants and other services are up four per cent.
Moreover, science and engineering students are also becoming popular hiring targets as companies go digital. Recruitment among this group rose 8.8%, following an uptick last year.
However, Nikkei also emphasized how the demand is not being matched by the supply. This signifies that the race for talent in the country will continue through next year.
Japan Research Institute Vice Chairman Hisashi Yamada said “the structural labor shortage caused by factors such as low birthrates will continue.”
He added that companies could also hire fewer than what they are planning due to an economic slowdown caused by the monetary tightening in the United States (US) and European region.