Declining Labor Force and Changes in the Hiring Market
First written in FY2025. 1 of 3 entries say "Worsened", first in FY2026-H1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 13 of 20 companies on the "Worse" side.
16 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In Japan, companies' demand for experienced hires is increasing against a backdrop that includes the growing use of AI, even as the working-age population declines, and the number of job openings continues to rise. As a result, labor shortages have become apparent in almost every occupation, along with such challenges as higher recruitment costs, greater reliance on recruitment agencies, and increased workloads for recruitment personnel. Companies are therefore being called upon to transform their recruitment activities.」
The Company continues to describe business-environment challenges including a declining working-age population, labor shortages, rising recruitment costs, and increased reliance on external human resources services. - FY2026-H1WorsenedAnnual report
「Meanwhile, Japan's labor market is experiencing a continued decline in the working-age population as the population ages and the birth rate falls, intensifying competition to attract highly skilled talent in the job-change market. In addition, as companies face rising personnel costs due to inflation and wage increases, there is growing demand for mechanisms that enable effective recruitment within limited budgets.」
In addition to the ongoing decline in the working-age population and difficulty in hiring, the Company explicitly identifies rising personnel costs at customer companies due to inflation and wage increases as an environmental factor, adding recruitment efficiency within limited budgets as a new challenge. - FY2025First statedAnnual report
「In Japan, the working-age population is declining and labor shortages are emerging in almost every occupation, while the number of job openings continues to increase. As a result, companies are expected to face increasing difficulty in acquiring talent.」
The Company cites a labor force of 69.67 million, 3.31 million annual job changers, more than 10 million people wishing to change jobs or otherwise seeking a change, a domestic recruitment market of approximately ¥1.5 trillion, and 58% of companies whose mid-career hiring plans remain unfilled. It identifies a decline in customer companies' willingness to invest as a risk that could affect performance.