Changing jobs in Japan

Japan is still one of the largest economy in the world, but she has been criticized for its distinctive employment system for years and years.

Though it is common to change jobs in the other countries, Japanese lifetime employment system did not allow to do so.

Recently, however, the situation has been changing gradually because of the burst of bubble economy and aging society.

Japanese lifetime employment was based on the rapidly developing economy.

The more people a company hired, the more money it earned at that time, but after the bubble burst, the situation changed dramatically.

Japan went into the lost decades.

The uncertain economic condition no longer allows companies to be optimistic.

For example, the CEO of TOYOTA, which is the biggest company in japan, stated that the lifetime employment system is not realistic anymore.

Not just the economic situation, but a low birthrate with aging population is accelerating the change.

The number of young people are declining dramatically.

Companies cannot hire enough number of new graduates anymore.

Then, what companies can do is hiring mid-career workers.

Under the lifetime employment, it was difficult to change jobs or companies that you work for, but now companies are establishing a new payment system for mid-career workers.

That allows people to change their jobs more easily.

Japanese employment system is changing gradually, from distinctive seniority system to the global standard.

Recently, however, the situation has been changing gradually because of the burst of bubble economy and declining loyalty to companies.

Not just the burst of bubble economy, but declining loyalty to companies, especially in younger generations, is accelerating the change.

Young people today are under the influence of Western individualism and libertarianism, and tend to put more emphasis on their personal life than work.

Unlike earlier generation, which is under the influence of Japanese traditional paternalism, they do not hesitate to quit their jobs anymore.

Japanese employment system is changing gradually, from distinctive seniority system to the performance-based pay system.