MORE major Japanese companies plan to reduce the number of new graduates they hire from fiscal 2027 despite the country’s labour shortage as they turn to digital solutions including artificial intelligence to improve productivity, a Kyodo News survey showed Sunday.
A survey of 111 companies suggests a possible shift in the aggressive hiring trend seen since the COVID-19 pandemic, with digitalization reshaping labour-intensive work and the Middle East crisis making the economic outlook uncertain. In the survey conducted from mid-March to early April, 23 per cent, or 25 firms, said they plan to reduce the number of new graduates they hire for the financial year starting in April 2027, up 11 percentage points from a year earlier.
By contrast, just 16 per cent, or 18 companies, said they would increase hiring, making the first time in five years that there are more companies planning to cut the number of new graduates than increase.
The results also highlight a shift towards more diverse hiring beyond new graduates, including foreign workers and mid-career recruits. Some 39 per cent of the firms, including Fujifilm Holdings Corp and restaurant chain operator Skylark Holdings Co, said they plan to hire more foreign workers for positions in Japan, citing expectations for innovation and overseas business expansion.
Companies are also increasingly turning to mid-career hiring to secure skilled workers. Hitachi Ltd and MUFG Bank said the number of their fiscal 2027 new graduate hires will be less than their mid-career hires in fiscal 2026, citing their urgent need to secure talent with experience in digital fields.
Kyodo
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