Declining Advertising, Recruitment and Consumer Demand Due to Economic Stagnation in Japan and Overseas
First written in FY2016. 11 of 31 entries say "Restated". Latest entry: FY2026.
Recruit Holdings moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 131 of 176 companies on the "Worse" side.
66 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「More recently, a “low hiring, low attrition” environment has become established in the United States, with both hiring and attrition remaining at historically low levels, and companies have become more cautious about hiring. The number of job openings has also been declining gradually in many regions outside the United States, and if this trend continues, it may affect the performance of the business over an extended period.」
Regarding hiring demand risk, we specified that the low-hiring, low-attrition environment has become established in the United States and that the number of job openings has declined outside the United States, indicating the possibility of a prolonged impact on performance. - 2026-05-15MaterialisedEarnings
「U.S. revenue rose 7.6% to ¥801.6 billion, or 8.8% in U.S. dollar terms to $5.31 billion, as the U.S. average price growth rate (Note) reached 17% owing to advances in monetization despite stagnant hiring demand.」
The company stated that U.S. revenue increased through higher average prices despite continued stagnation in hiring demand. - FY2025WorsenedAnnual report
「In the HR Technology business, more recently, rising interest rates and announcements of workforce reductions by major U.S. technology companies and others have led corporate clients in the United States to become increasingly conscious of a potential economic downturn. As a result, hiring sentiment has weakened, and labor supply and demand are returning to historically normal levels. Similar trends were observed in many regions outside the United States, and if these trends continue, they may affect the performance of the business over an extended period.」
Regarding the normalization and decline in hiring demand, we noted that similar trends have spread beyond the United States and that they may affect performance over the long term. - FY2024MaterialisedAnnual report
「In the HR Technology business, more recently, rising interest rates and announcements of workforce reductions by major U.S. technology companies and others have led corporate clients in the United States to become increasingly conscious of a potential economic downturn. As a result, hiring sentiment has weakened and labor supply and demand have begun to normalize. Similar trends were observed in many regions outside the United States, and revenue declined.」
The normalization and decline in hiring demand spread outside the United States and became evident in a decline in revenue from the HR Technology business. - FY2024-Q3MaterialisedAnnual report
「The supply-demand mismatch between job seekers and corporate clients continued to ease, and the labor market in particular continued to normalize in the United States. The number of job postings on Indeed, including sponsored and free postings, declined year on year in many of the countries where we operate, including the United States, while traffic to Indeed and Glassdoor and the number of applications increased from the previous year.」
The normalization and decline in hiring demand continued to manifest itself in a decrease in job postings, and third-quarter revenue from the HR Technology business declined 13.4% year on year. - FY2024-Q1MaterialisedAnnual report
「The supply-demand mismatch between job seekers and corporate clients continued to ease, and the labor market in particular continued to normalize in the United States. The number of job postings on Indeed, including sponsored and free postings, declined year on year in many of the countries where we operate, including the United States.」
The normalization and decline in hiring demand became evident in the form of a decrease in job postings, and revenue from the HR Technology business declined 9.1% year on year. - FY2023WorsenedAnnual report
「In the HR Technology business, strong hiring demand from corporate clients continued as countries eased restrictions related to COVID-19 and economic activity recovered. More recently, however, rising interest rates and announcements of workforce reductions by major U.S. technology companies and others have led corporate clients in the United States to become increasingly conscious of a potential economic downturn. As a result, hiring sentiment has weakened and labor supply and demand have begun to normalize.」
Regarding economic and demand risks, we specified that hiring sentiment in the United States has weakened against a backdrop of rising interest rates and workforce reductions at major technology companies, and that labor supply and demand are normalizing. We also indicated our forecast for a contraction in market size in 2023. - FY2023-Q3RestatedAnnual report
「Although the labor market remained tight, the supply-demand imbalance between job seekers and corporate clients continued to ease.」
We have reconfirmed that labor market tightness and the supply-demand mismatch between job seekers and corporate clients are easing. Although hiring demand in the recruitment services business continued to increase across a broad range of industries, some companies have also begun to show a more cautious approach to hiring. - FY2023-Q2Continued recovery in recruitment demandAnnual report
「This was because strong recruitment demand continued worldwide, increasing demand for recruitment solutions services centered on job advertisements provided by Indeed and Glassdoor.」
The company states that although the risk of lower recruitment demand remained, strong recruitment demand continued worldwide. It also states that recruitment demand in the human resources area recovered from the previous year. - FY2023-Q1Continued recovery in recruitment demandAnnual report
「Although there were signs that overheated recruitment activity was easing, strong recruitment demand continued in the United States and Europe. In Japan, recruitment demand increased year on year as economic activity recovered.」
Although the risk of lower recruitment demand remained, strong recruitment demand continued in the United States and Europe, while recruitment demand in Japan increased year on year as economic activity recovered. - FY2022Recovery in the business environment alongside continued uncertaintyAnnual report
「Economic activity recovered in the United States and Europe as vaccination programs progressed, and recruitment activity became more robust. In Japan, economic activity was affected by the state of emergency and Priority Preventive Measures during the first half, but the impact during the second half was limited.」
Although the risk of lower demand due to COVID-19 remained, the company reported a recovery in recruitment demand in the United States and Europe and in the business environment in Japan. - FY2022-Q3Continued recovery in the business environmentAnnual report
「During the third quarter, economic activity continued to recover in the United States and Europe, and recruitment activity became more robust. In Japan, economic activity also showed signs of recovery year on year after the state of emergency and Priority Preventive Measures were lifted at the end of September 2021.」
Although COVID-19 continued to affect demand and business activity, economic activity recovered and recruitment activity remained robust in the United States and Europe, while economic activity in Japan also showed signs of recovery. - FY2022-Q2Continued recovery in the business environmentAnnual report
「During the second quarter, economic activity recovered in the United States and Europe as vaccination programs progressed, and recruitment activity became more robust. In Japan, although vaccination progressed, the declaration of a state of emergency and the Priority Preventive Measures remained in place, and the recovery in economic activity was gradual.」
Although the pandemic continued to affect demand and business activity, the recovery in economic activity and recruitment demand continued in the United States and Europe as vaccination programs progressed. - FY2022-Q1Recovery in the business environmentAnnual report
「During the first quarter, the effects of the global spread of COVID-19 and measures taken by various countries to contain it remained, while economic activity recovered markedly in the United States and Europe as vaccination programs progressed, leading to increased recruitment activity.」
Although the pandemic continued to affect demand and business activity, the company reported a recovery in economic activity and recruitment demand in the United States and Europe as vaccination programs progressed. - FY2021MaterialisedAnnual report
「Revenue for the consolidated fiscal year was ¥2,269.3 billion, down 5.4% from the previous consolidated fiscal year.」
The risk of lower economic activity and demand due to COVID-19 and other factors continued, and revenue for the fiscal year ended March 2021 declined 5.4% year on year. - FY2021-Q3MaterialisedAnnual report
「Revenue for the third quarter was ¥611.5 billion, up 0.5% year on year. Of this amount, ¥30.6 billion, excluding tax, related to the rent support benefit administration services commissioned by the Small and Medium Enterprise Agency of the Ministry of Economy, Trade and Industry. Excluding this impact, revenue was down 4.5% year on year. Although the global spread of COVID-19 and the effects of containment measures in various countries were wide-ranging, the business environment continued to show a gradual recovery, as in the second quarter.」
Third-quarter revenue, including commissioned services, increased 0.5% year on year, but declined 4.5% excluding the rent support benefit administration services. Although demand continued to be affected by the pandemic and containment measures in various countries, the business environment showed a gradual recovery. - FY2021-Q2MaterialisedAnnual report
「Revenue for the second quarter was ¥569.1 billion, down 6.2% year on year. Although the global spread of COVID-19 and the effects of containment measures in various countries continued to be wide-ranging and revenue declined, the year-on-year rate of decline in revenue improved in the second quarter compared with the first quarter in all business segments.」
Demand continued to decline due to COVID-19 and containment measures in various countries, and second-quarter revenue fell 6.2% year on year. Meanwhile, the rate of decline improved from the first quarter in all business segments. - FY2021-Q1MaterialisedAnnual report
「Revenue for the first quarter was ¥475.4 billion, down 20.0% year on year. The global spread of COVID-19 and the effects of measures taken by countries to contain it were wide-ranging, resulting in lower revenue in all business segments.」
The decline in demand caused by COVID-19 and containment measures in various countries affected all business segments, resulting in revenue 20.0% lower year on year. - FY2020MaterialisedAnnual report
「With the timing of the end of the COVID-19 pandemic difficult to predict, consumer activity declined worldwide, including in Japan, while corporate activity also weakened, affecting the Group’s business, including revenue.」
Regarding the risk of lower economic activity and demand, the company describes the decline in consumer and corporate activity caused by COVID-19 and the resulting actual impact on the Group’s revenue and other performance indicators. - FY2020-Q2WorsenedAnnual report
「In recent years, uncertainty has increased regarding the economic conditions of the countries in which the Group operates, owing to the rise of protectionism led by the United States and the resulting deterioration in relations with trading partners, uncertainty or deterioration in Europe’s economic and political conditions, including the United Kingdom’s withdrawal from the European Union (Brexit), persistent deflation in Japan, long-term population aging and declining birth rates, and the decline in the total population.」
The company has added specific uncertainty factors to the economic and demand risks, including protectionism, Brexit, deflation, population aging and declining birth rates, a declining Chinese economy, and geopolitical risks in North Korea and the Middle East. - FY2020-Q1RestatedAnnual report
「During the first quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2019RestatedAnnual report
「When the economy stagnates, companies tend to cut advertising expenses and recruitment demand tends to decline, while users’ consumption also tends to stagnate.」
The company has reiterated the risk of lower advertising, recruitment and consumer demand due to economic stagnation, mainly in Japan, the United States and Europe and Australia. - FY2019-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2018-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2018-Q2RestatedAnnual report
「During the six months ended the second quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2017RestatedAnnual report
「When the economy stagnates, companies tend to cut advertising expenses and recruitment demand tends to decline, while users’ consumption also tends to stagnate. If these factors cause demand for the Group’s services to weaken, they may adversely affect the Group’s performance.」
The company has reiterated the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2017-Q3RestatedAnnual report
「When the economy stagnates, companies tend to cut advertising expenses and recruitment demand tends to decline, while users’ consumption also tends to stagnate. If these factors cause demand for the Group’s services to weaken, they may adversely affect the Group’s performance.」
The company continues to disclose the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2017-Q2RestatedAnnual report
「When the economy stagnates, companies tend to cut advertising expenses and recruitment demand tends to decline, while users’ consumption also tends to stagnate. If these factors cause demand for the Group’s services to weaken, they may adversely affect the Group’s performance.」
The company continues to disclose the risk of lower advertising, recruitment and consumer demand due to economic stagnation. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of lower demand due to economic stagnation. - FY2016First statedAnnual report
「When the economy stagnates, companies tend to cut advertising expenses and recruitment demand tends to decline, while users’ consumption also tends to stagnate. If these factors cause demand for the Group’s services to weaken, they may adversely affect the Group’s performance.」
The risk that economic conditions, particularly in Japan and the United States and elsewhere overseas, will affect demand for services and business performance.