The Japanese labour market
In 2022, Japan's unemployment rate is expected to drop from under 3 percent to around 2.7 percent, according to the Japanese Ministry of the Interior. In appearance, the country is in full employment. Behind these good figures, however, lies a more worrisome reality. Part-time work and job insecurity are increasing. The Covid pandemic has worsened the situation of thousands of employees. More women are being hit hard by this growing impoverishment, especially when they are single parents.
Regular and non-regular workers in Japan
If one wants to have a secure job in Japan, it is better to be a regular worker which is equivalent to a permanent contract. In contrast, Japan is characterized by paradoxes. There is an invisible divide between employees with permanent contracts and those with precarious contracts (short-term contracts, part-time, temporary workers, odd jobs). The same divide exists between foreign and Japanese companies, between large and small groups, between women and men.
Types of employment contracts in Japan
The safest work contract is the seishain, equivalent to a permanent contract. In addition, it is considered the most appropriate contract by Japanese society. It is also the best option to secure a bank loan or to be supported by a real estate agency when purchasing a property.
The other types of contracts are more prone to precariousness. The keiyakushain is similar to the employee on a fixed-term contract. This contract may last from a few months to one year. The hakenshain is, therefore, a temporary worker. The arubaito employee performs small jobs. Originally considered a job for students, it actually touches a much wider population. It is not uncommon to see an elderly person taking up a baito (short for arubaito) job.
The term freeter is also used to refer to precarious workers. While the word has its origins in the English word "free," to categorize workers who are free to move from one job to another, the reality is more complex. Freeters are precarious workers, and their numbers are growing. Young graduates are increasingly likely to become freeters. If they don't get to catch the year's hiring wave (the season starts in the spring), they may be forced to take these precarious jobs.
Applying for a job in Japan
Japanese companies do not hire in the same way as foreign companies do. In general, foreign companies are less formal. Candidates are free to create their CV as he wishes, with or without a photo. They are also free to choose the clothing of their choice, with the colors they want, as long as it fits the job. In Japanese companies, a CV is a form with a mandatory photo. The dress code is the same for the candidates: dark suit/tailor, white shirt. Candidates are less free to express their originality, as this is not what companies are looking for. However, things are gradually changing, and some large Japanese companies are accepting more original presentations.
Which are the most prominent sectors in Japan?
Digital and new technologies
The technology and digital professions are in the spotlight. The "kishidanomics", the economic plan of the Kishida government, grants a large budget to accelerate the digital transition. The plan provides for 10,000 billion yen to make Japan "a science and technology nation". This is a boon for all working people and future working people, including international students and employees. In addition to this fund (which will support universities), Japan will facilitate the development of startups and open another fund to support research and development. The Kishida government also plans to expand its investment in the metaverse.
Jobs for foreigners in Japan
IT and digital professions cover different subcategories: Artificial Intelligence/IA related jobs (AI engineer, AI project manager...), IT (network architect, database administrator, system engineer, IT developer...), Internet (web architect, web developer, community manager, web designer...), Big data (big data architect, data scientist...), video game (3D animator, game designer, tester, concept artist...) With the digitization of exchanges, these jobs are found in all employment sectors. The fields of administration, construction, industry, commerce, health, consulting and even teaching call upon new technologies.
Foreigners with degrees in these high-tech fields will have good work opportunities in Japan, especially if they speak Japanese. Knowledge of the language added to the ones they already speak makes their profile even more attractive. The digital world is one of trade. Countries are fighting for the best international talent. In addition to their education, they have the advantage of bringing a fresh perspective (in Japan) and their experience. Companies based in Japan are precisely looking for these kinds of profiles.
Other promising fields in Japan
The sectors that are traditionally open to foreigners in Japan remain so: tourism, hotels and restaurants, translation, teaching (language teacher, assistant), maintenance (surface technician), retail (salesperson, department employee). Salaries are calculated differently depending on whether you are in baito (small job) or full-time. Baito jobs, often part-time and less protected, offer wages close to the minimum wage (848 yen per hour). Many offer more, with salaries ranging from about 1000 to 1500 yen per hour, with an increase if you work at night.
Regarding teaching in Japan, be careful to distinguish exchange cafe positions from permanent employment in a private language school, a national education institution, or a training center. For the latter sectors, a diploma, professional experience, or even a recommendation is required. However, even exchange cafés have raised their standards and do not hesitate to test the language level of foreigners who apply.
Wages in Japan
Regarding wages, a network engineer can earn around 7,500,000 yen per year. It is about 8 000 000 yen for a web designer and 9 000 000 yen for a data scientist. But these figures are only an imperfect estimate. The salary gap evolves greatly depending on the type of company (a public administration, a private clinic, a unicorn start-up, a multinational, etc.), the type of activity (research branch, pre-production, production, post-production, marketing, trade, sales, etc.), and the region (salaries in Tokyo are generally higher, but so is the cost of living). You also have to take into account the position. It is estimated that an assistant earns about 4 million yen per year. A manager can expect to earn up to 8 million yen. Management positions are, not surprisingly, even better paid. Finally, it is important to remember that Japan promotes seniority as a guarantee of loyalty to the company.
Working in Japan as a woman
Women have been facing discrimination long before they became part of the Japanese workforce. They are less likely to be assigned to scientific or medical fields, which require long training. They are instead preferred to work in early childhood or in the hospitality industry. In Tokyo, for years the prestigious private medical school Tokyo Medical College has lowered the grades of women to limit their numbers. In 2011, it noticed an increase in the number of women. It began lowering their grades to limit their numbers to 30%. A practice that has reportedly affected the medical community for considerably more time. Other universities would later admit to rigging their exams to limit women enrolment.
The case broke, and the incriminated universities were no longer rigging the system. The success rate of women increased and exceeded that of men. But the damage had already been done. In the eyes of female physicians, without the rigging, women would be the majority in the medical field. In 2016, they made up just 21% of the workforce — one of the lowest rates among OECD countries. The United Kingdom leads with 47%, followed by Germany, France and Canada.
Gender-pay gap in Japan
In 2021, Japan ranked 120th out of 156 countries in the World Economic Forum's equal pay index. This is one of the worst scores among industrialized countries. In Japan, women generally earn 20-26% less than men, while only 13.2 percent of women hold senior positions. As of May 2022, the Japanese government has been considering a proposal to require companies with more than 300 employees to publish the gender pay gap on their websites. 17,600 companies are expected to be affected. In addition, 4,000 large companies would have to publish the number of women in management positions and the percentage of men who take paternity leave.
This discrimination has direct consequences on the Japanese labor market and Japanese society. The younger generations do not want to have children anymore. Women suffer from a much more precarious situation than men, especially when they are older.
The dress code in the Japanese workplace
One could think that this is a trivial issue. However, it reveals another facet of the conservatism of the Japanese workplace. The MeToo movement has not made much headway here. In 2019, the KuToo movement (Ku for "kutsu/shoes" and "ku/pain") was born to denounce the mandatory wearing of heels. Besides the discomfort and health problems (wearing heels every day is not recommended), this injunction created a new discrimination between women and men. In Japan, an employer can impose a dress code on his employees. The same thing exists in other countries, like France. But it must be justified by the employer. But this measure affects women more than men. The phenomenon is even more striking in Japan.
How will the Japanese labor market evolve?
Some people thought they saw the signs of a post-health crisis revolution. The Kishida government has reaffirmed its commitment to promoting women's employment. Shinjiro Koizumi, the then Minister of the Environment, took a two-week paternity leave... However, the most cautious do not imagine a big turnaround. There is still too much conservatism that prevents women from reaching the same positions as men. 7 out of 10 working women still stop working when they become mothers (willingly or not). This is because companies do not do much to retain them, on the contrary. Those who keep on working can fall victim to matahara, the harassment of pregnant women.
Labor shortage, birth rate, aging population... Japan's next challenges
Japan's labor market is facing several questions that require urgent answers. Should the doors to immigration be opened wider? How to increase the number of births? How to deal with an aging population? Japan is confronted with new challenges that, if not addressed, would lead to a decline in its GDP. A situation that some economists and thinkers consider in a philosophical manner. For them, Japan has no choice but to look forward.
Rather than betting on stagnation, these researchers are counting on the awakening of the younger generation and on the increase in international exchanges. Young people cannot stand conservatism and are breaking more codes. Foreigners bring their cultural background and challenge the Japanese labor market. These are all positive influences essential to the renewal of the system.
