Japan’s Top Ten Talent trends for 2025
Unveiling Japan’s Top Ten Talent trends for 2025
As we move into 2025, Japan’s workforce is undergoing significant shifts shaped by technological advancements, sustainability goals, and evolving workplace dynamics. From the growing demand for data centers and the rise of contract work to the urgent need for cybersecurity expertise, Japan’s labour market is adapting to meet global and domestic challenges. These changes are reshaping industries and driving demand for professionals with specialised skills in areas such as green construction, AI-enhanced HR processes, and multilingual capabilities.
This article explores the top talent trends defining Japan’s workforce in 2025, providing insights into the opportunities and challenges across sectors.
1. A race to meet data centre demand
Though the global pandemic fades from memory, its effects are still being felt in Japan’s tech sector. Fuelled by the shift towards e-commerce and remote working, the global data market continues to exceed expectations. In Japan, this is exacerbated by a belated corporate and public digital transformation drive and a huge increase in cloud-based streaming service popularity. As companies increasingly adopt AI into their operations, data centre demand in North and Southeast Asia is predicted to grow 25 per cent per year until 2028 (1). Japan; however, is currently behind other countries – both globally and in APAC – requiring a drive to catch up. As a result, 2025 will see more domestic and international data centre organisations operating in Japan, feeding a requirement for talent in property desk, facility manager, and construction project management roles.
2. ESG investment and the skills challenge
Despite a global slowdown in environmental, social, and governance (ESG) investment, Japan’s softly-softly approach, inspired by a governmental pledge to achieve net zero greenhouse gas emissions by 2050, means that investment is booming, a situation that will continue in the coming twelve months. Japan is planning to invest ¥150 trillion in green transformation, and an increasing number of local governments are issuing green bonds for initiatives including disaster mitigation measures and energy efficient infrastructure amounting ¥20 trillion over the next decade (2). In order to take advantage of this investment, domestic organisations have been engaging consultants, but in the coming year both junior roles and mid-senior positions are expected to open up.
3. Building for a sustainable tomorrow
2024 saw Japan’s aerospace industry make global headlines when it launched the world’s first wooden satellite, proving the nation’s ability to marry traditional construction techniques with modern technology. However, what it really symbolised was Japan’s innovation in sustainable technology, and with the aforementioned rise in green awareness, the construction industry is taking the lead. By the year 2050, nearly 70 per cent of the world’s population is projected to live in cities (3). As Japan has almost 93 percent of its population in urban areas (4), the challenge is in constructing habitation for ever-denser cities in a sustainable way. As a result, in 2025, the construction industry will continue to seek professionals skilled in sustainable practices and eco-friendly building standards. Furthermore, with a greater impetus on carbon footprint reduction and infrastructure resilience, skills in green engineering, waste reduction, and energy-efficient design are becoming more valuable.4. Transforming office spaces for employee engagement
Although Japan is traditionally known for its rigid work culture, with long office hours, another pandemic-influenced disruption is the shift towards remote and flexible work options. While this change has been cemented by some public and private organisations offering four-day work weeks, and legislation that requires flexible working options for employees with young children, companies also recognise that problem solving, idea generation, and communication is much improved when employees are on site. Consequently, employers are turning to construction project management organisations to improve the attractiveness and functionality of more sparsely populated office spaces with the aim of encouraging more employees to the office, driving a requirement for consultants or outsourced talent with design backgrounds.
5. Evolving facility management for modern needs
A further consequence of Japan’s increasingly flexible corporate culture is that the facility management sector is transitioning towards a ‘workplace services’ role. This shift means that successful talent must recognise that the duties now go beyond traditional maintenance and operation and instead encompass a wide array of employee-focused amenities, such as wellness programmes; workspace management; technology integration, which is critical in this era of digital transformation; and hospitality services, including the recruitment of front desk support and event coordination. These positions are becoming increasingly central to facility management’s role in supporting the employee experience and improving efficiency, turning the office from a functional floorplan to a service-oriented environment. Candidates who can demonstrate skills in these new aspects of the role may be in line for the limited in-house roles, though the majority, particularly at junior and mid-levels, will be outsourced.6. Redefining career paths through contract work
Thanks to its stable employment, company benefits, and bonuses, being seishain – or full-time employee –has long been considered the holy grail of Japan’s workforce. However, due to a desire to put specialised skills to use and the convenience of choosing one’s own hours, an increasing number of Japanese workers are eschewing this lifestyle and moving into contract and ‘gig’ workspaces. The 2022 edition of a five-yearly Internal Affairs Ministry survey showed that Japan had more than 2.5 million freelancers (5), though that figure has increased dramatically in the interim. This growth will continue in 2025 following the creation of the New Freelance Act, which offers a greater number of protections to ‘gig’ workers. These professionals are particularly evident in high-skill areas such as IT, engineering, and HR, and are increasingly attractive to employers for bridging skills gaps without committing to full-time hires.7. Protecting Japan from digital threats
A worrying trend for 2025 is that cyberattacks are likely to become more sophisticated, and Japanese companies are under pressure to protect sensitive data. Thus far, Japan has lagged behind other developed countries in improving cybersecurity, leaving both public and private organisations vulnerable to cyber hackers. As this may lead to extortion, a disruption of infrastructure, or even a national security information breach, high-ranking government officials have highlighted the urgent need to protect Japan from such attacks. Although plans for a bill to enhance cybersecurity capabilities, improvements that would monitor and detect cyberattacks against critical infrastructure, have stalled, companies in finance, healthcare, and technology are being proactive in capturing talent in incident response and information security management, with those possessing CISSP qualifications and experience in network security and penetration the top targets.
8. Transforming HR with AI technology
With recruitment across a number of industries on the rise in Japan, companies are turning to AI to streamline recruitment processes. Though adoption remains cautions, the benefits are clear, as predictive candidate analysis and automated interview scheduling can make onboarding a less labour intensive process. Currently, many organisations lack the resources to adequately train current staff to maximise AI recruitment, meaning that talent with experience in AI human resources processes will be increasingly sought after. Those who are able to navigate the minefield of the ethical considerations and biases inherent in AI recruitment systems will be most in demand. Organisations that are unable to fill these positions are turning to specialists that can offer recruitment process outsourcing and managed service programme services to gain access to the best available talent and create a workforce strategy that onboards the right talent in timely manner.9. Fintech and the future of cashless society
Historically a cash-based society, Japan is undergoing a fintech revolution. Though the aim to reach a 40 per cent cashless rate by 2025 is significantly lower than other Asian economic powerhouses such as China and South Korea (at 86 and 79 per cent respectively), (6) attaining that level would have been unthinkable just five years ago. Since the pandemic, there has been a rapid shift towards digital app-based payments driven through both governmental support and consumer demand, and financial organisations in 2025 will be seeking talent that can help them match their neighbours. The fintech sector is also being propelled by a wide array of AI adoption, and as it is attracting venture capital in high-demand areas, such as embedded finance and regtech, meaning candidates with standout experience in these areas will be top of employers’ lists.
10. Adapting to global roles through language skills
The continued weakness of the Japanese yen against the US dollar in 2024, culminating in a modern-day record low in July, raised concern in many quarters. However, there have been some benefits, including a boost to exports, and this interest in Japanese products and services – particularly in tech and engineering – has seen a requirement for more multilingual professionals. This is a perennial issue in the Japanese labour market, as English skills remain at a premium; a situation that has intensified with Japan sliding to 92 in the EF English Proficiency Index (7). However, candidates who possess high-level English or Chinese ability and are comfortable working in diverse environments will be highly sought after. Companies unable to locate such talent will continue to mine the shallow pool of Japanese nationals returning from work or study overseas.(1) https://www.japantimes.co.jp/business/2024/01/15/tech/asia-data-centers-ai-boom/
(2) https://www.japantimes.co.jp/business/2024/08/19/esg-sustainable-finance-japan/
(3) https://www.weforum.org/stories/2024/04/japan-circular-built-environment/
(4) https://www.worldometers.info/world-population/japan-population/#:~:text=The%20population%20density%20in%20Japan,in%20Japan%20is%2049.4%20years.
(5) https://www.japantimes.co.jp/news/2024/10/31/japan/explainer/freelance-act-explainer/
(6) https://www.forbes.com/sites/zennonkapron/2024/05/29/japans-fintech-awakening-navigating-demographic-shifts-with-financial-technology/
(7) https://mainichi.jp/english/articles/20241114/p2a/00m/0na/007000c
Looking for a new role?
Find the latest jobs today or speak to Hays recruiter for career advice.