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Japan – Pay rates for temporary workers decline

19 April 2013

In March, starting wages for temporary workers in three of Japan’s major metropolitan areas dropped for the first time in seven months, according to a survey by the country’s largest staffing firm, Recruit Holdings.

This also found that hiring demand grew last month across the Kanto, Tokai and Kansai regions. In these metropolitan areas, the average hourly rate for temporary workers fell by -0.3% to JPY 1,475 (USD 14.84) compared to the prior year. The pay rates in these regions have not declined since August 2012.

According to another survey by jobs site Dip Corp, across all of Japan, the average rate for temporary workers fell by -2.2% to JPY 1,291 (USD 12.99).

Recruit’s job advertising division noted an increase in hiring intentions during March as there have been positive signs of the economy picking up again. The number of job ads last month was up by +36%, it said, with many companies hoping to fill vacancies with temporary workers due to an acute skills shortage.  

In a recent survey, Hays Japan found pockets of skills shortages in sectors such as IT, accountancy and finance. There has been especially high demand for candidates with bilingual skills, ideally Japanese and English. The recruiter expects IT professionals, web developers and FP&A managers to be most sought after in the quarter to June.

Japan is the second-largest staffing market in the world after the US and is highly fragmented compared to most other major staffing markets. Recruit dominates the market, followed by Tempstaff, Pasona and Adecco, according to research by Staffing Industry Analysts


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