JAPAN: For many Gen Zers around the world, the dream of paying off student loans and securing affordable housing can seem elusive.
However, for young talent emerging from Japan’s universities, these challenges might feel far more manageable—and for some, they may not even exist at all.
According to Yahoo Finance, a striking 40% of Japanese students graduating this March already have job offers in hand—an impressive feat that marks the highest percentage since 2016, according to a 2024 report by research institute Shushoku Mirai Kenkyusho.
What’s driving this early rush of opportunities? A tight labour market fueled by Japan’s ageing population and declining birth rates has left businesses scrambling to secure skilled workers before they even leave school.
The enticements
This labour crunch has flipped the traditional job-hunting timeline on its head, with students now evaluating multiple offers before receiving their diplomas.
To stay competitive, employers are sweetening the deal with a range of enticing perks—from subsidized housing to student loan repayment programs—giving Japan’s next generation of workers the upper hand.
Japan is not alone in its quest to attract top talent from Generation Z, but its labour shortages have become particularly pressing.
In the first half of 2024, Japan’s birth rate hit a historic low, falling by 5.7% compared to the same period the year prior, according to the Ministry of Health, Labor, and Welfare.
Over the past 30 years, the number of young people aged 20 to 24 has shrunk by 36%, and projections suggest that by 2040, Japan could face an 11 million worker shortage.
In response, businesses are finding new ways to hold onto and attract younger employees, even if it means looking beyond national borders.
Despite Japan’s growing reliance on foreign workers, many traditional companies, such as Hizatsuki Confectionery, remain hesitant to recruit talent from abroad due to language barriers and a preference for domestic hires.
As a result, businesses are ramping up efforts to woo homegrown Gen Z talent with competitive and creative benefits.
One of the most notable trends has been the rise of employer-sponsored housing. Japan’s ongoing cost-of-living crisis has made affordable housing increasingly scarce, particularly in urban areas.
In response, companies are stepping in with solutions. Nippon Life, one of the country’s largest insurers, built a 200-room dormitory in a prime Tokyo area near Disneyland, offering employees affordable accommodations that cost less than a third of market rates.
Meanwhile, Itochu, a major trading house, has invested in housing for its workers, providing them with not just a place to live, but additional perks such as meals, a café, a bar, and a sauna—all conveniently located near the company’s Tokyo office.
Housing benefits are just the beginning. More and more employers are offering to help new hires tackle student debt.
According to a study from the Japan Student Services Organization, the number of businesses providing student loan repayment assistance has doubled between November 2023 and 2024.
Tokyo Energy & Systems, for instance, offers employees up to ¥20,000 ($127) per month toward student loan repayment, with a cap of ¥3.6 million ($22,800) in total.
But perhaps the most groundbreaking development comes from the Tokyo Metropolitan Government, one of Japan’s largest employers, which will introduce a four-day workweek for its 160,000+ employees starting in April 2025—a move inspired by similar policies in Germany and the U.K.
These developments signal a seismic shift in Japan’s labour landscape, where businesses are now going to extraordinary lengths to attract and retain top-tier talent from a shrinking pool of young workers.
For Gen Zers entering the workforce, this moment in Japan represents a rare confluence of opportunity, innovation, and generosity—and it’s reshaping the future of work in the country.