The expansion of diverse work styles, including freelancing

「Individuals are expected to increasingly make autonomous career choices and adopt diverse working arrangements suited to their respective life stages. The government is also promoting the development of legal and regulatory frameworks to facilitate labor mobility accompanied by wage increases.」

「As values concerning how companies and individuals work continue to change following the COVID-19 pandemic, companies are expected to make greater use of external freelancers, while more cloud workers take on side jobs or multiple jobs, further expanding working arrangements not constrained by employment status.」

「Since the COVID-19 pandemic, values concerning how companies and individuals work have changed, and options for working outside traditional employment have expanded. More large companies have begun allowing employees to hold side jobs or multiple jobs, while more companies have introduced four-day workweek systems, signaling changes in traditional employment arrangements. In October 2021, the government established the Headquarters for the Realization of a New Form of Capitalism within the Cabinet, and new measures to promote the use of employees with side jobs or multiple jobs and protect freelancers are being considered and implemented. Reforms aimed at facilitating labor mobility are also progressing.」

「More companies began securing talent regardless of employment status, while large companies also started allowing employees to hold side jobs or multiple jobs and introducing four-day workweek systems, signaling the beginning of structural changes in traditional working arrangements.」

「Against this backdrop, more companies began securing talent regardless of employment status, while large companies also started allowing employees to hold side jobs or multiple jobs and introducing four-day workweek systems, accelerating structural changes in the way people work.」

「As corporate activities become more digital and shift toward e-commerce, companies’ needs regarding talent sourcing have begun to change, including the expanded acceptance of external specialist talent such as freelancers, people with side jobs, and people in concurrent employment, and the utilization of cloud workers who work via the internet. These developments are favorable for the market surrounding the company.」

「Opportunities to participate actively have expanded for women, seniors, people with disabilities, and others representing latent labor, as have work options outside employment by companies, including side jobs and concurrent employment, and individual attitudes toward work are becoming more diverse.」

「The Work Style Reform-related Acts were implemented in stages beginning in April 2019, followed by the implementation of equal pay for equal work in April 2020 and the expansion of employment opportunities through age 70 under the amended Act on Stabilization of Employment of Elderly Persons in April 2021. Moves to review traditional employment systems have consequently expanded.」

「In the talent-matching market, the spread of remote work among companies during the COVID-19 pandemic has expanded opportunities for workers other than permanent employees, including freelancers, and for cloud workers who work online. Although the market was affected by the stagnation of economic activity during the state of emergency, client demand has recovered since the state of emergency was lifted, and market growth remains solid.」

「Meanwhile, as the spread of COVID-19 has accelerated, many companies, regardless of size or industry, have begun introducing and utilizing working from home and telework, and are required to adapt to new ways of working and a new lifestyle, or the “new normal.” As a result, the ways in which companies source talent are expected to change, including the acceptance of external specialist talent such as freelancers, people with side jobs, and people in concurrent employment, as well as the utilization of cloud workers who work via the internet.」

「Recently, the impact of COVID-19 has required many companies, regardless of size or industry, to introduce and utilize working from home and telework, bringing traditional approaches to management to a turning point. Alongside this, methods of sourcing talent have also begun to change, with companies bringing in outstanding external specialist talent, including freelancers and people with side jobs, online to participate in management and business operations, rather than relying solely on their own employees.」

「Recently, major Japanese companies have increasingly lifted restrictions on side jobs, and more companies have begun allowing employees to have side jobs or engage in concurrent employment to increase their income, improve motivation, and secure and retain outstanding talent. Alongside this trend, companies are expected to bring in outstanding external specialist talent, including freelancers and people with side jobs, rather than relying solely on their own employees, and utilize them in management, business operations, and services.」

「During the consolidated fiscal year, “work-style reform,” the central theme of the government’s flagship initiative to realize a society in which all citizens are dynamically engaged, advanced. Moves to expand opportunities for women, seniors, people with disabilities, and others representing latent labor to participate actively, and to expand work options outside employment by companies, including lifting restrictions on side jobs for employees, became more active.」

「The labor shortage at companies continued, and efforts to utilize latent labor, including women who find it difficult to work full-time because of childcare and seniors, became more active.」

「During the consolidated fiscal year, “work-style reform,” the central theme of the government’s flagship initiative to realize a society in which all citizens are dynamically engaged, began to gain substantial momentum. Efforts expanded opportunities for women, seniors, people with disabilities, and others representing latent labor to participate actively, while moves to expand work options outside employment by companies, including lifting restrictions on side jobs for employees, became more active.」

「As labor shortages have become a serious issue for companies, demand has increased for the company’s job and worker matching service against a backdrop of growth in the number of freelancers, who work independently of companies, increased opportunities to utilize senior talent, and rising demand for remote work among homemakers and others.」

「In addition to the worsening labor shortage caused by the declining birthrate, population aging, and changes in the industrial structure, developments favorable to the market targeted by the company’s business have become increasingly prominent under the government-led “work-style reform,” including growing demand for non-employment-based talent due to tighter working-hour regulations, the acceptance of side jobs, and improved recognition of freelancers working outside traditional employment arrangements.」

「As part of the business environment surrounding the company, approximately 3.8 million people in Japan’s non-labor force wished to work on average in 2016. Women accounted for approximately 2.74 million, or about three-quarters of the total. The most frequently cited reason was “for childbirth or childcare,” given by approximately 860,000 people. A total of approximately 1.06 million men and women responded that they “could not find suitable work.”」

「Society is increasingly demanding the creation of work-style options that do not depend on traditional employment relationships, such as concurrent employment, side jobs, and freelancing. According to the 2012 Employment Status Survey, 2,343,900 people had side jobs, representing approximately 3.6% of the total working population.」

「Against the backdrop of a rapidly worsening labor shortage, efforts by private-sector companies to implement “work-style reform” have become a major trend. Amid companies’ growing concern that securing talent is difficult under traditional uniform work systems, making maximum effective use of latent labor is an urgent issue in Japan’s labor market, and the need for “work-style reform” as a management strategy is increasing.」

「The “Japan’s Plan for Dynamic Engagement of All Citizens,” adopted by the Cabinet in June 2016, identifies work-style reform as the greatest challenge in making major changes to social attitudes and systems so that diverse work styles are possible. The utilization of latent labor is therefore regarded as one of the most important issues facing Japan.」

「Amid companies’ reconsideration of hiring practices centered on permanent employees, the diversification of values regarding work has continued to advance.」

「There is growing momentum for diverse work styles, including freelancing, in place of traditional employment centered on permanent employees.」