Be ready for what’s ahead:
Five hiring and career trends defining Japan’s workforce in 2026

2026 heralds a pivotal moment for Japan’s labour market. Employers are navigating a landscape shaped by shifting economic conditions, evolving workforce expectations and an accelerating adoption of new technologies.

Despite softer confidence across parts of Asia, employers in Japan are not standing still. Growth remains a priority, but how organisations attract, retain and motivate talent is evolving. From flexible work to global mobility, employers are setting a new pace for the year ahead.

Drawing on the latest workforce insights, here are five trends shaping Japan’s labour market as organisations and professionals prepare to run strong into the new year.

1. Growth ambitions remain strong despite economic headwinds

Despite ongoing economic headwinds in Japan including a contracted GDP and weakened export performance, employers are entering the year with a continued focus on targeted growth and long‑term positioning.

https://www.deloitte.com/us/en/insights/topics/economy/asia-pacific/japan-economic-outlook.html

https://www5.cao.go.jp/keizai3/getsurei-e/2026jan.html

According to a recent Hays survey, 87 per cent of employers in Japan say growing their organisation is a key strategic goal for the year ahead, slightly higher than the Asia average of 86 per cent.

Looking more closely at what this growth means in practice, 38 per cent of employers mentioned that their focus was on expanding market share, while 35 per cent are prioritising higher competitiveness. A further 35 per cent are aiming to directly increase turnover, reinforcing a pragmatic approach that balances expansion with commercial performance.

However, growth today is less about rapid expansion and more about sustainable progress. Many organisations are prioritising critical roles, future‑ready skills and operational efficiency rather than broad headcount increases.

For professionals, this signals an opportunity to position themselves favourably. Focus on high‑impact skills such as AI tool proficiency, as well as soft skills such as adaptability and problem‑solving, to demonstrate immediate value in roles that directly support business growth.

2. Talent retention is one of the biggest obstacle to achieving growth

While ambitions are high, employers in Japan recognise that holding onto talent will be one of their toughest challenges this year.

35 per cent of employers here say talent retention is the most pressing issue preventing them from achieving their organisational goals, the highest percentage in Asia. Employees continue to reassess what they want from work, placing greater emphasis on career development, wellbeing and flexibility. In highly competitive sectors, retaining skilled professionals is often more difficult, and more costly, than hiring new talent.

With the new year traditionally signalling a period of increased job movement, employers who invest in engagement, clear progression pathways and meaningful conversations will be better positioned to keep pace and avoid losing momentum.

For professionals, this is an opportune time to proactively seek development discussions, clarify career pathways and assess whether your current role is continuing to meet both professional goals and personal priorities.

3. Flexible work is a key attraction driver for professionals in Japan

Flexible working is no longer a short‑term response or an optional benefit. It has become a core expectation for many professionals in Japan.

43 per cent of professionals locally say flexible work arrangements are important to them, compared with 45 per cent across Asia. While the headline figure is slightly lower, the impact of flexibility on employee experience in Japan is significant.

Among professionals in Japan:

68 per cent say flexible work helps improve their work‑life balance
52 per cent say they feel more productive
37 per cent say they feel more motivated to stay with their employer

These findings are a clear link between flexibility, performance and retention. Employers who embed flexible work into their operating model are more likely to maintain energy and commitment across their workforce.

4. Conversational AI assistants are becoming part of everyday work

Alongside changes to how and where people work, technology is playing an increasingly central role in the employee experience.

Conversational AI assistants are the number one AI tool being used worldwide, with adoption particularly strong across Asia. 90 per cent of professionals in Japan report using conversational AI tools such as ChatGPT and Copilot, slightly lower than the Asia average of 92 per cent.

This signals a major shift in how work is done. From drafting content in multiple languages and analysing data to supporting decision‑making and improving efficiency, conversational AI is becoming embedded in daily workflows.

For employers, this trend presents both opportunity and responsibility. Organisations that provide guidance, training and clear policies around AI use can help employees work smarter while maintaining quality, compliance and trust.

5. International mobility continues to motivate professionals in Japan

Japan’s domestic market remains structurally constrained, shaped by demographic pressures, sluggish consumption and a long‑standing labour shortage. Against this backdrop, international experience continues to appeal strongly to professionals.

63 per cent of professionals in Japan say they would be interested in working overseas if an opportunity arose, reflecting a continued desire for global exposure, skill development and career acceleration.

For multinational organisations, international mobility can be a powerful way to attract ambitious talent, build global capability and develop future leaders. However, it also highlights the importance of clear career pathways at home.

Employers who connect global opportunities with long‑term progression are more likely to retain globally minded professionals and keep them moving forward within the organisation.

For professionals seeking to explore career growth abroad, this means proactively building globally relevant skills and communicating long‑term career goals to ensure international opportunities align with sustained career growth rather than short‑term moves.

Running strong into the year ahead

As Japan enters the Year of the Horse, the recruitment landscape is defined by ambition, movement and change. Employers are eager to grow, but success will depend on how well they retain talent, support flexibility and respond to evolving employee expectations.

At the same time, professionals in Japan have an important role to play in shaping their own career trajectories as the market continues to evolve.

When employers and employees move in step, organisations are better placed to build resilient teams, while professionals are empowered to grow, advance and go the distance in their careers.