Japan ranks 1st globally for talent competitiveness according to Hays Global Talent Tracker
Japan, October 28, 2025 - The Global Talent Tracker is a comparative report produced by Hays, a leading specialist recruitment and workforce solutions company. It assesses and ranks the talent competitiveness of 35 countries worldwide, focusing on how effectively each market attracts, develops, and retains skilled workers. The Tracker evaluates factors such as labour market participation, value derived from talent investment, flexibility in responding to market changes, and the effectiveness of talent development strategies, providing valuable insights for business leaders and policymakers.
A new report released by Hays, the global leader in specialist recruitment and workforce solutions, reveals how Japan’s position in the global talent landscape is being shaped by a range of workforce and labour market factors. The report, which compares labour market performance across 35 countries, highlights both opportunities and risks in attracting, developing, and retaining skilled talent—offering valuable insights for business leaders and policymakers.
Japan’s global standing: strengths and challenges:
Japan ranks 1st out of 35 in global talent competitiveness, a measure of how effectively a market attracts, develops, and retains skilled workers. That ranking is better than China (2nd), Singapore (4th), Malaysia (11th), Hong Kong SAR (14th) and Thailand (24th).
The research shows that Japan ranks 1st in talent participation (how well countries are mobilising working age populations in inclusive and sustainable ways) and 6th in talent value (a measure of how investment in people delivers returns) among the 35 markets assessed.
Japan (17th) is behind on talent market flexibility—China (1st), Malaysia (4th), Hong Kong (8th) and Singapore (11th) all rank higher on response rates to demand shifts, scaling of operations and new ways of working.
Japan (18th) was also outperformed on talent development by Singapore (13th). This is in large part because those markets invest more in education and skills investment.
While Japan is poised for rapid growth in the life sciences, technology and engineering sectors, high labour costs and cultural rigidity mean continued progress will depend on bold reforms.
“Hays’ findings show how the global landscape for talent is evolving at unprecedented speed, with countries investing strategically to build more innovative, resilient and future-ready workforces amid increasing economic uncertainty,” said Dirk Hahn, Chief Executive Officer of Hays.
“As organisations navigate this complexity, the ability to identify and harness the right talent ecosystems will become a defining factor for long-term success.”
“The findings reinforce there are many contributing factors to a strong workforce, and each market can and should consider that combination differently, but by understanding these trends, businesses can make smarter decisions about where to invest, grow and compete on the world stage.”
Japan: A global talent leader with room for growth
Hays’ research highlights a range of factors shaping the future of Japan. When reviewing the Compound Annual Growth Rate of Gross Value Added (GVA CAGR) of local domestic sectors, life sciences, technology and engineering were identified as the fastest growing industries by 2030, highlighting the nation’s ongoing
shift towards innovation-led growth.
“Japan’s labour market itself is one that is defined by general stability,” says Grant Torrens, Managing Director of Hays Japan. “The country boasts the lowest unemployment rate among the 35 countries studied, and a soaring labour force participation rate.”
“Beyond its economic fundamentals, Japan remains a strategic choice for multinational companies, often serving as a regional headquarters or innovation hub. Its sizeable domestic consumer base also provides a buffer against external market volatility, enabling businesses to operate with relative resilience.”
While there are clear strengths, the data also points to areas where targeted action is needed to remain competitive in attracting global talent and investment. Labour costs in Japan are significant relative to the rest of Asia, compounded by high CapEx, real estate and recruitment costs in Tokyo.
“Organisations will need to consider the types of roles that could be relocated or outsourced carefully, given the premium that accompanies these personnel,” said Grant.
The Hays Global Talent Tracker was developed in partnership with Oxford Economics in early 2025, analysing labour market data across 35 markets. The research benchmarks national workforces using a composite index built from five pillars – talent value, participation, development, flexibility, and innovation – drawing on a wide range of economic, demographic, and skills-based indicators.
shift towards innovation-led growth.
“Japan’s labour market itself is one that is defined by general stability,” says Grant Torrens, Managing Director of Hays Japan. “The country boasts the lowest unemployment rate among the 35 countries studied, and a soaring labour force participation rate.”
“Beyond its economic fundamentals, Japan remains a strategic choice for multinational companies, often serving as a regional headquarters or innovation hub. Its sizeable domestic consumer base also provides a buffer against external market volatility, enabling businesses to operate with relative resilience.”
While there are clear strengths, the data also points to areas where targeted action is needed to remain competitive in attracting global talent and investment. Labour costs in Japan are significant relative to the rest of Asia, compounded by high CapEx, real estate and recruitment costs in Tokyo.
“Organisations will need to consider the types of roles that could be relocated or outsourced carefully, given the premium that accompanies these personnel,” said Grant.
The Hays Global Talent Tracker was developed in partnership with Oxford Economics in early 2025, analysing labour market data across 35 markets. The research benchmarks national workforces using a composite index built from five pillars – talent value, participation, development, flexibility, and innovation – drawing on a wide range of economic, demographic, and skills-based indicators.
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Contact
Hays Japan Marketing Team
T: 03-4565-5953
E: Natsuko.Arai@hays.co.jp
T: 03-4565-5953
E: Natsuko.Arai@hays.co.jp
About Hays Japan
Hays Specialist Recruitment Japan KK ("Hays Japan"), established in Tokyo in 2001, is one of the largest foreign recruitment companies in Japan with three offices across the country (Tokyo Head Office, Osaka and Yokohama).
At Hays Japan, our experts provide professional services across the private sector, dealing in permanent positions, contract roles, recruitment process outsourcing (RPO), Managed Service Programmes (MSP) and IT solutions in the following 13 specialisms: Accountancy & Finance, Banking & Financial Services, Engineering, Marketing & Digital, Human Resources, Insurance, Legal, Life Sciences, Office Professionals, Property, Sales & Marketing, Supply Chain and Technology. This ensures a highly focused, fully tailored specialist recruitment service, enabling us to power the future of work by serving thousands of companies and candidates in Japan. Hays Japan is recognised as a Great Place to Work® by the esteemed Great Place to Work® Institute Japan, the global authority on workplace culture. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand.
At Hays Japan, our experts provide professional services across the private sector, dealing in permanent positions, contract roles, recruitment process outsourcing (RPO), Managed Service Programmes (MSP) and IT solutions in the following 13 specialisms: Accountancy & Finance, Banking & Financial Services, Engineering, Marketing & Digital, Human Resources, Insurance, Legal, Life Sciences, Office Professionals, Property, Sales & Marketing, Supply Chain and Technology. This ensures a highly focused, fully tailored specialist recruitment service, enabling us to power the future of work by serving thousands of companies and candidates in Japan. Hays Japan is recognised as a Great Place to Work® by the esteemed Great Place to Work® Institute Japan, the global authority on workplace culture. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including Japan, China, Hong Kong SAR, Malaysia, Singapore, and Thailand.
About Hays
Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2025, the Group employed over 9,900 staff operating from 207 offices in 31 countries. For the year ended 30 June 2025:
- the Group reported net fees of £972.4 million and operating profit (before exceptional items) of £45.6 million.
- the temporary placement business represented 62% of net fees and the permanent placement business represented 38% of net fees.
- Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest.
- Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, China, the Czech Republic, Denmark, France, Germany, Hungary, Hong Kong SAR, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.