Japan's job availability in 2023 improves for 2nd year
Ideas:
The hospitality sector was hit hard by the pandemic, with many workers either losing their jobs and or laid-off, with idea of being hired back later, but the problems is/was many of the hospitality sector workers might have found new jobs and didn't return to their old jobs.
At the present time, there is a labor shortage in Japan, and maybe the hospitality sector, like other people oriented sectors are not able find the right of people to fill the jobs lost during the pandemic.
Its takes time to find the right people, and if many companies and or sectors are having challenges finding workers, it takes even more time needed.
But there are probably a lot of openings for jobs, but young workers, these days, seem to be more picky in choosing jobs, and they want certain work/life experience related to a job.
Just because there are 131 jobs for every job seeker doesn't mean all 100 jobs seekers for the 131 job openings likes those jobs or want those jobs. Young workers today, good or not so good, are looking for specific jobs and not just any job or any company,
There might have been caution in the construction and manufacturing sectors, but at the same time, add in the idea that construction and manufacturing, these days, might not be what young Japanese workers want. Of course rising costs might be slowing hiring, but these two sectors need to pay wages that can attract young workers or they will move to sectors that are more exciting and entertaining.
And not just manufacturing and construction, but all companies and all sectors, need to pay wages and offer good benefits, and good work/life experiences, that young workers want today, if a company wants to get the best talent available.
The unemployment rate has always been low in Japan compared to other advanced economies, but at the same time, there might be a large group of contract workers and or part-time workers employed in the Japanese economy, which might skew the employment numbers.
For example, as an indicator, consumer spending is never that high in Japan compared to the US and one reason might be that many contract and or part-time workers are holding onto their wages and not spending them, like regular wage earners.
But to be fair, to the Japanese society and companies, unemployment during the pandemic could have been much worse, but Japanese companies, while not paying the highest wages, don't layoff workers like in the US.
What Japanese companies do, if needed, is lend workers to other companies if a company needs workers and or if a company is experiencing challenges they will agree with another company to move its workers to another company, for a short period of time, until business conditions improve, and that way no one gets laid of if Japan.
Layoffs do occur of course in the Japanese economy, as many Japanese companies have adopted western style business practices but many still don't layoff workers.
When there is a noticeable number of workers leaving their jobs, it might mean business conditions are improving and think they can easily find a new job. For example maybe during the pandemic people stayed in their jobs because the economy was not good and maybe there were not a lot of openings for new jobs.
The accommodation and restaurant sector was hit the hardest during the pandemic as sales and profits decreased to the point that many companies in that sector had to layoff workers and or put them on temporary leave until the pandemic had passed.
But now the sector might be having hiring challenges as many foreign tourists have entered the county and maybe the sector can't find enough workers to handle the increase number of guests.
The hospitality industry needs to increase wages, like other companies in order to get the best talent possible. if not, they are going to be left with not so good workers and or have to begin to hire foreign workers like the Japanese convenience stores have had to do.
Foreign workers might actually be more productive than younger Japanese workers, as maybe they appreciate having a good job or part-time job in Japan compared to some younger Japanese workers who don't want to work the long hours needed in the hospitality industry.
For example, whenever I visit Japan, and go to convenience stores called conbinis in Japan, these days I only see foreign workers and not young Japanese workers. I might see an older worker but almost never an young Japanese worker.
The same if I visit a fast food place such as Mos Burger, a popular Japanese hamburger place or visit McDonalds in the mornings, I only see older Japanese workers in the fast food places and not young Japanese workers.
A drop to 1.27 is not a big deal from 1.31 as that is less than one worker total. So its not significant. I doubt that workers have noticed a drop to 1.27 from 1.31. Only economists and statisticians obsess over such numbers.
December, because of the holiday period and the upcoming New Year period in Japan, companies might have reduced hiring until after the calendar New Year period begins after the week long New Year period is finished, and or many companies take a week long break at the end of December and beginning of January.
The same with many companies in December and January, as its the Xmas holiday period and the Japanese New Year period, maybe many companies delay any hiring during this time until the end of the Japanese New Year period, which runs through the first week of January.
Not all sectors or companies hire at the same time or same rate, and even in Japan, with many companies/some companies only hiring new graduates in April, many companies do have year-long hiring practices like western companies and they understand workers are available every month of the year and not just in April.
Japanese companies understand to get the best talent they can't wait until April to hire new workers or experienced workers as the competition for talented workers is intense and the need to be able to hire every month of the year, as needed.
Again, maybe only economists and statisticians obsess over 0.1 percent changes but I doubt the average Japanese workers even sees or thinks about the numbers. They are just looking for a job that might interest them and not the numbers.
There are both positives and negatives in people leaving their jobs and or for example decreased in the unemployed numbers. For example if more people left their jobs, that is a good sign that those people see good things in the economy and they are looking for a better job.
The unemployed numbers might have decreased as more people found jobs in the Japanese economy, as the Japan move farther away from the pandemic situation.
And yes, workers do get dismissed in the Japanese economy, as Japanese companies have adapted western style business practices, but the situation, usually is much less than in western countries.
The challenge in the coming months is wage increases. Are only large companies going to increase wages or are small and midsize companies too, going to get increase wages as up to 70 percent of all wage earners in Japan don't work for large companies but small and midsize companies.
Have a nice day and be safe!
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