Jul 06, 2017 (Japan Times) - Japan's labor shortage has pushed the number of people changing jobs and employers during their career to its highest level since the global financial crisis, as companies scramble for workers with experience amid a rapidly-aging economy.
So-called job-hopping goes against the grain of Japan's work culture, where many companies hire graduates and employ them until they retire. But the jobs-for-life system is slowly giving way, as society shifts and firms curb labor costs.
Switching jobs for better conditions is no longer taboo within the tightening labor market, and the trend is being led by mid-career workers.
The number of job-changers rose for the seventh straight year in 2016 to 3.06 million, the highest since 2009, though it still accounts for just 4.8 percent of the labor market.
Older workers have more opportunities because of demographic factors: a fast-aging society, low birth rate and falling working-age population. The jobless rate has stood at a near two-decade low, while the jobs-to-applicants ratio is at a 43-year high.
Big firms say the labor market is at its tightest since 1992, according to the Bank of Japan's latest tankan survey published this week.
Though job turnover is still low relative to other major economies the change should be welcome news to Prime Minister Shinzo Abe, who has been championing labor flexibility and merit-based pay --- with little success so far.
Enhancing labor mobility is expected to help raise low productivity and boost wages, allowing the economy to move past its deflationary rut.
Companies facing labor shortages are willing to pay for battle-tested workers who don't need as much training.
