71% of organisations in Japan experienced ‘moderate to extreme’ skill shortages, tied with Thailand for highest in Asia

 
62 per cent of hiring managers in Asia admitted to encountering ‘moderate to extreme’ skill shortages in 2024, with an additional 26 per cent facing minor skill shortages. When asked about the main causes of these shortages, 47 per cent attributed it to ‘competition from other employers’. Additionally, 33 per cent considered ‘pay levels’ to be the main contributing factor, while 27 per cent cited a ‘lack of progression opportunities’. 
 
When examining the types of positions organisations were struggling to fill, intermediate-level roles were particularly challenging (55 per cent), followed by management positions (37 per cent), entry/junior-level roles (20 per cent), C-Suite positions (13 per cent), and director roles (12 per cent). In response to these findings, 33 per cent of hiring managers indicated that ‘employee retention’ was a key HR investment focus for 2024 and 2025, while 27 per cent were focused on ‘employee recruitment’. 
 

Japan: Increased hiring to fill gaps 

 
Hiring managers in Japan faced the highest levels of such talent deficits in Asia, tied with Thailand at 71 per cent and ahead of Malaysia (64 per cent) and China (60 per cent). Additionally, 38 per cent of organisations cited 'competition from other employers' as a key contributor to skill shortages. 
 
"56 per cent of organisations in Japan plan to expand their workforce this year to address talent gaps," said Grant Torrens, Managing Director at Hays Japan. "14 per cent of these organisations expect a five to ten per cent increase in headcount within the year, while an additional 14 per cent anticipate growth exceeding ten per cent." 
 
An additional 15 per cent of hiring managers anticipate an unspecified increase in headcount this year. Alongside hiring intentions, 31 per cent of organisations are also prioritising employee retention to secure essential talent within their companies. 
 
"Intermediate-level roles were found to be the hardest to fill, with 54 per cent of hiring managers in Japan indicating difficulty filling such roles compared to 46 per cent for management-level roles and 19 per cent for entry-level roles,” said Grant. 
 

Communication skills in high demand 
 

When asked which soft skills were most in demand by organisations in Japan, ‘communication and interpersonal skills’ came up overwhelmingly on top at 50 per cent. This was followed by the ‘coordinating well with others’ (27 per cent) and ‘the ability to adopt change’ (25 per cent). 
 
"These findings underscores the vital role that communication and teamwork play in local workplaces. Employers are prioritising these skills to ensure smooth collaboration and adaptability in an ever-changing business landscape. Candidates who excel in these areas will find themselves in high demand," said Grant. 

Hays Specialist Recruitment Japan KK ("Hays Japan"), established in Tokyo in 2001, is one of the largest foreign recruitment companies in Japan with three offices across the country (Tokyo Head Office, Osaka and Yokohama). 
 
At Hays Japan, our experts provide professional services across the private sector, dealing in permanent positions, contract roles, recruitment process outsourcing (RPO), Managed Service Programmes (MSP) and IT solutions in the following 13 specialisms: Accountancy & Finance, Banking & Financial Services, Engineering, Marketing & Digital, Human Resources, Insurance, Legal, Life Sciences, Office Professionals, Property, Sales & Marketing, Supply Chain and Technology. This ensures a highly focused, fully tailored specialist recruitment service, enabling us to power the future of work by serving thousands of companies and candidates in Japan. Hays Japan is recognised as a Great Place to Work® by the esteemed Great Place to Work® Institute Japan, the global authority on workplace culture. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand. 
 

About Hays 

 
Hays plc (the "Group") is the world’s leading specialist in workforce solutions and recruitment, such as RPO and MSP. The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2024, the Group employed over 11,100 staff operating from 236 offices in 33 countries. For the year ended 30 June 2024: 
 
– the Group reported net fees of £1,113.6 million and operating profit of £105.1 million. 
– the Group placed around 57,700 candidates into permanent jobs and around 225,000 people into temporary roles. 
– 13% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 35% in Rest of World (RoW). 
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees. 
– Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest. 
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.