A striking 40% of Japanese students graduating this March already have job offers in hand—an impressive feat that marks the highest percentage since 2016, according to a 2024 report by research institute Shushoku Mirai Kenkyusho.
This labour crunch has flipped the traditional job-hunting timeline on its head, with students now evaluating multiple offers before receiving their diplomas. To stay competitive, employers are sweetening the deal with a range of enticing perks—from subsidized housing to student loan repayment programs—giving Japan’s next generation of workers the upper hand.
Despite Japan’s growing reliance on foreign workers, many traditional companies remain hesitant to recruit talent from abroad due to language barriers and a preference for domestic hires. As a result, businesses are ramping up efforts to woo homegrown Gen Z talent with competitive and creative benefits.
One of the most notable trends has been the rise of employer-sponsored housing. Japan’s ongoing cost-of-living crisis has made affordable housing increasingly scarce, particularly in urban areas.
In response, companies are stepping in with solutions. Nippon Life, one of the country’s largest insurers, built a 200-room dormitory in a prime Tokyo area near Disneyland, offering employees affordable accommodations that cost less than a third of market rates.
A major trading house, has invested in housing for its workers, providing them with not just a place to live, but additional perks such as meals, a café, a bar, and a sauna—all conveniently located near the company’s Tokyo office.
Housing benefits are just the beginning. In the first half of 2024, Japan’s birth rate hit a historic low, falling by 5.7% compared to the same period the year prior, according to the Ministry of Health, Labor, and Welfare. Over the past 30 years, the number of young people aged 20 to 24 has shrunk by 36%, and projections suggest that by 2040, Japan could face an 11 million worker shortage.
