Japan's Job Market Holds Steady as Recruitment Reform Looms for 2029

Japan's November job market remained stable with 1.18 jobs per applicant and 2.6% unemployment. The government confirmed plans to reform rigid recruitment schedules starting 2029, potentially benefiting foreign workers.

Key Points

  • Japan's job-to-applicant ratio held steady at 1.18 in November 2025.
  • Unemployment rate remained unchanged at 2.6 percent, among developed nations' lowest.
  • Government reviewing recruitment schedule reforms to begin spring 2029 hiring season.
  • Minimum wage increases caused simultaneous drops in job openings and seekers.
Japan's employment landscape showed remarkable stability in November 2025, even as the government moves forward with plans to overhaul the country's rigid job recruitment schedule—a change that could significantly impact both Japanese and foreign job seekers in the coming years. According to data released by the Ministry of Health, Labour and Welfare on December 25, Japan's job-to-applicant ratio remained steady at 1.18 in November, unchanged from the previous month. This figure means there are approximately 118 job openings for every 100 job seekers, indicating a relatively healthy employment market. The unemployment rate also held constant at 2.6 percent in November, as reported by the Ministry of Internal Affairs and Communications on December 26, demonstrating continued labor market stability. For foreign residents and expats working in Japan, these figures suggest a sustained demand for workers across various sectors. The stable job-to-applicant ratio indicates that employment opportunities remain available, though the ministry noted an interesting trend: both the number of job openings from companies and the number of new job seekers decreased simultaneously. Officials attribute this dual decline partly to the significant minimum wage increases implemented across Japan, which may have caused some employers to be more cautious about hiring while potentially discouraging some workers from actively seeking new positions. Meanwhile, a government council examining Japan's employment practices confirmed on December 26 that it will proceed with reviewing the country's traditional recruitment schedule for students entering the workforce from spring 2029 onward, according to NHK. The current system, known as "shukatsu" or job hunting, follows a rigid timeline that has governed Japanese university students' job searches for decades. However, officials recognize that the actual start of the selection process has been creeping earlier through internship programs and informal screening, creating a disconnect between official guidelines and reality. This proposed reform could have significant implications for foreign graduates of Japanese universities and international professionals seeking to enter Japan's workforce. The traditional recruitment schedule has long been criticized for its inflexibility and for disadvantaging candidates who don't fit the typical mold of Japanese new graduates, including foreign students who may graduate on different timelines or professionals with work experience abroad. The government's decision to target 2029 provides a substantial lead time—approximately four years—for universities, companies, and job seekers to prepare for the changes. While specific details of the new schedule have not yet been announced, the reform signals a potential shift toward more flexible hiring practices that could benefit international talent. For expats currently working in Japan or considering employment here, the stable labor market indicators provide reassurance. The consistently low unemployment rate of 2.6 percent ranks among the lowest in developed nations, reflecting Japan's ongoing labor shortage challenges. This shortage has historically created opportunities for skilled foreign workers, particularly in technology, engineering, healthcare, and education sectors. However, the simultaneous decrease in both job openings and job seekers warrants attention. The impact of minimum wage increases—which saw significant jumps across all prefectures in 2025—may be causing employers to consolidate positions or delay hiring decisions. Foreign workers should remain aware that while opportunities exist, companies may be more selective in their hiring processes. As Japan continues grappling with demographic challenges and an aging workforce, the combination of stable employment figures and upcoming recruitment reforms suggests the country is attempting to modernize its labor practices while maintaining economic stability. For the expat community, staying informed about these changes will be crucial for career planning and understanding the evolving Japanese workplace landscape.