Hiring younger workers could be 'even more difficult' as employees head abroad
An economist is warning that hiring younger employees could become even more difficult in Japan as a growing number set their sights overseas for higher wages, according to reports.
Harumi Taguchi, principal economist at S&P Global Market Intelligence, told Bloomberg that more people are flying abroad in hopes of getting jobs.
"If this trend continues, hiring younger workers in Japan could get even more difficult," she told Bloomberg.
Her remarks came as Japan's average annual wages remained behind other nations with only $41,509 in 2022, according to data from the Organisation for Economic Co-operation and Development.
This is much lower than the $59,408 average annual wages in Australia, which seems to be the top destination for young Japanese employees as of late.
Bloomberg reported that Australia's attractive wages, perceived safety, and similar time zone make the country a highly desired destination for young Japanese employees.
Kotaro Sanada, a spokesman for the Japan Association for Working Holiday Makers, added that Australia's recent changes in lengthening employment period made it even easier for Japanese to move there.
Atsushi Takeda, chief economist at Itochu Research Institute, said Japan's wages had not risen in decades, while other countries were increasing theirs.
"If the conditions for faster growth do take hold in Japan, maybe young people will see a reason to return," he told Bloomberg.
There have been efforts among employers and unions in Japan to hike wages, with last month's negotiations seeing the highest-recorded increase since 1991 with 5.24%.
The stakes to capture younger employees become even biggest amid Japan's ageing population, with more employers introducing various benefits to encourage work-life balance and boost birth rates.
