A front page story in the May 25 print edition of the Asahi Shimbun reported that the overwhelming recruitment rate for new graduates continued this spring, with 98.1 percent of people graduating from universities in 2024 securing work, the highest rate since the labor and education ministries started keeping such records in 1997. The newspaper notes that the numbers were not influenced by any “outside forces,” such as the COVID pandemic, and that employers are aggressively hiring new staff amidst a pronounced labor shortage. As a point of comparison, the lowest graduate employment rate was 91 percent in 2011, when the economy was still reeling from the 2008 world recession and which, if you think about it, doesn’t really sound that low. But this is Japan, where actual university studies and subsequent career paths aren’t necessarily coherent, but more on that in a bit. Except for a dip during COVID, the recruitment rate has steadily risen ever since. The rate for high school graduates was just as impressive: 98 percent, the same rate as last year.
A labor ministry official told Asahi that they believe this sellers’ market will continue indefinitely, a perspective that the newspaper qualifies in a second related article on page 7 and which discusses the problem of “mismatch” for new employees at Japanese trading companies. Often new employees are assigned to divisions or sections that they are either not suited for or find unappealing. Traditionally, the trading company would decide on an assignment during the initial training period based on the employee’s character and other criteria, but since such initial assignments can have a profound effect on the employee’s career, sometimes the employee is not satisfied with the assignment, so the companies are endeavoring to get a better idea of its new recruits’ desires and strong points during the university interview sessions and then place them in jobs they prefer.
For example, Sumitomo Corporation plans to introduce a placement system called Will Selection starting next spring where company recruiters and recruits determine what position the recruit will fill after starting work. The system will apply to 30 percent of new recruits, who will be able to choose from some 30 job descriptions. The remaining 70 percent will follow the “regular selection process,” wherein assignments are determined after the recruit starts working. A publicity rep for the company told Asahi that in recent years students have had a more definite idea of what kind of work they want to do, as well as more detailed career goals. Consequently, many who find that those desires are not met after they start working leave the company early on. Mitsui & Co., Ltd., has already started a similar program, with recruits offered the chance to choose the section where they will work, though they will need to go through a probationary period in the section “in order to understand the nature of the work more comprehensively.” Marubeni adopted such a system in 2021 called Career Vision Recruitment wherein section assignments are determined prior to entering the company.
The exceptions are C. Itoh, which offered some recruits the choice of assignment as far back as 1998, but has since rescinded the policy; and Mitsubishi Corporation, which has always maintained the right to make such decisions since the company believes the new employee cannot really understand which section best suits them until they start working for the company and gain experience. If they later feel dissatisfied they can always negotiate for a change in assignment.
Though trading companies are not unique to Japan, the traditional Japanese system of recruitment and advancement are especially suited to trading company operations, which mostly have to do with facilitating business deals for a wide variety of industry and corporate needs. Japanese companies tend to hire new blood based more on the university one attends than on the subject one studied because, in the end, the company will want the employee to bend to the particular nature of the company, which means becoming accommodated to its culture and practices. Even students who majored in technical fields, such as engineering, will not necessarily be hired to use those technical skills. Consequently, allowing recruits to choose what field they will work in is revolutionary in a sense, and Asahi seemed to be limiting its article to trading companies in order to show how desperate the private sector is to hold on to new employees, because one of the more salient characteristics of a sellers’ labor market is higher turnover.
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