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Japan’s Current Job Market Situation

Japan is currently facing the problems of a shrinking population. Families are having fewer and fewer children, and as a result, the number of young Japanese entering the workforce each year is decreasing. In a lot of industries, Japanese companies are having a hard time finding enough people to fill their open positions.

The lack of talent is especially noticeable in the tech and engineering sectors. Over 85% of IT companies in Japan feel either a strong or moderate lack of engineers. This sentiment is shared across the board – from companies with less than 30 employees to those with 1000 and more.

Currently, around 35% of IT companies in Japan are employing foreigners. The top three countries where those foreigners come from are China, South Korea, and Vietnam. India has not yet entered the Top 10.

However, the number of Indians in Japan is increasing. In June 2020, around 39,764 Indians were living in Japan, almost a 20% increase from 2018. Out of those Indian nationals, 9,621 were holders of the “Engineer/Specialist in Humanities/International Services” visa (+37% compared to 2018).

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