Midcareer Hiring Boom Shakes Up Japan’s Job Market

Four of Five Firms Now Hire Midcareer Workers

The share of Japanese companies that either hired or were in the process of hiring midcareer employees from October 2023 through March 2024 was 79.5%, according to a survey conducted by the Recruit Works Institute. This is an increase of nearly 20 percentage points from the same period 10 years ago, when the figure stood at 59.9%, suggesting that midcareer recruitment has become significantly more common over the past decade.

The survey also found that midcareer hiring was more prevalent among larger companies. The practice was seen among 70.7% of businesses with 5 to 299 employees, 85.5% of those with 300 to 999 employees, 91.2% of those with 1,000 to 4,999 employees, and 95.9% of those with 5,000 or more employees. In other words, for companies with 1,000-plus employees, midcareer hiring has become standard practice.

By industry, the highest rates were seen in machinery and equipment manufacturing (86.5%), transportation (85.7%), and food service and hospitality (84.0%).

Postpandemic Rise in Job Hopping

What does this trend mean for the workers themselves?

Data from the Labor Force Survey, conducted monthly by the Ministry of Internal Affairs and Communications, indicates that the number of people changing jobs—defined as those with employment experience who left their previous employer within the past year—peaked at 3.53 million in 2019. This number declined during the COVID-19 pandemic but returned to growth after hitting a low in 2021. A similar trend was observed during the 2008–9 global financial crisis, indicating that job transitions are sensitive to economic conditions.

The recent surge in midcareer recruitment thus seems to reflect a growing readiness among workers to switch employers. Several factors likely contribute to this trend. The 2024 Analysis of the Labor Economy published by Japan’s Ministry of Health, Labor, and Welfare identified the pursuit of better working conditions as a key driver of increased job transitions in 2023.

To address persistent labor shortages, many companies have proactively raised wages, including the starting salaries of new graduates. In such an environment, workers are increasingly looking for better compensation and benefits, fueling job transitions and contributing to an increase in midcareer hiring.

Other factors are also at play. Demand for specialized talent, such as IT engineers and data scientists, has surged, intensifying competition. A January 2025 report by Persol Career found there were 7.59 openings per applicant in IT and telecommunications, ranking third after consulting (9.68) and human resources services (8.88).

Additionally, while hiring practices vary by company, role-specific recruitment has increased. This has expanded opportunities for individuals seeking to develop professional expertise, further contributing to the rise in mid-career hiring.

The End of Mass Graduate Hiring?

Recent increases in midcareer transitions have prompted speculation about the crumbling of Japan’s traditional recruitment practices that were almost exclusively premised on hiring graduates fresh out of school. This distinctive system has been criticized as outdated, given Japan’s stagnant economic growth and rigid labor market.

In the aforementioned survey by Recruit Works Institute, responding companies were asked why they turned to midcareer hires during the second half of fiscal 2023. The top choice (in a multiple-response format) was to fill vacancies due to employee turnover (70.7%), followed by a need to find workers with job experience (69.5%) and to fill staffing gaps (64.0%). These results suggest that midcareer hiring is increasing as companies are unable to meet hiring targets through new graduate recruitment alone and are confronted with rising turnover rates.

But such increases do not necessarily signal the collapse or decline of Japan’s traditional mass hiring of new graduates.

A separate Recruit Works Institute survey on job openings found there were 455,000 college students in the class of March 2025 seeking private-sector jobs, an increase for the second year running. This equates to 1.75 job openings per applicant, a ratio that has been rising since hitting 1.50 during the pandemic in 2022.

Corporate demand for new graduates thus remains strong, challenging the notion that the rise in midcareer hiring signals a significant erosion of traditional recruitment practices.

Preventing Talent Drain

What is the outlook for labor force mobility over the next few years? I expect hiring for both midcareer workers and new graduates to stay strong in the short term, provided that turnover rates remain stable. I do not foresee a sharp spike in midcareer hiring, as seen in the postpandemic period, though; rather, it should stay at current high levels for some time.

To stay competitive, companies will need to strengthen their midcareer recruitment strategies. Many businesses whose hiring strategies have been focused on new graduates may find this to be a challenge. But in the face of evolving market conditions, growing demographic challenges, and an aging workforce, they must give priority to diversifying their recruitment approaches.

Additionally, companies must also devote greater attention to employee retention. Lower turnover, obviously, reduces the need for midcareer hiring. With competition for experienced talent intensifying, businesses need to break the cycle of mass resignations and mass hiring in their workforce management.

Employee retention depends on multiple factors, including compensation, work environment, team dynamics, and management quality. Companies must honestly assess their attractiveness as places to work and implement effective strategies not just to attract midcareer workers but also to ensure their successful integration into the workforce.

(Originally written in Japanese. Banner image © Pixta.)