Japanese companies in rural areas face difficulties in hiring graduates

Many companies outside the metropolitan areas of Japan are struggling to hire a sufficient number of college graduates.

Japanese companies averaged 80,0% of the expected number of postgraduate hirings averaging 1 in October, down by 4,3 percentage points over the previous year, according to the Recruit Works Institute, a research arm of Recruit Holdings Co.

In rural areas, the number was below the national average, 57,9% in Hokkaido, 50,0% in the Tohoku region and 46,8% in the Shikoku region.

On the other hand, metropolitan areas had higher numbers, with 92,0% in the western area of ​​Osaka, Kyoto and Kobe, 89,0% in the Tokyo metropolitan area and 85,4% in the Chubu and Tokai region, including Nagoya.

The numbers indicate that businesses in urban areas, which house many universities, face less difficulty in hiring than those in rural areas.

The figures show that "the labor supply was disproportionately concentrated in urban areas," said an institute official.

By industrial sector, the number was especially low in medical care and social assistance, including nursing care in 38,8%, and under construction in 50%. Students avoid these sectors apparently because of heavy work and low wages.

Although 5,9 percent of Japanese companies plan to reduce contracting in the spring of 2020, 13,8 percent expect an increase in signings, indicating that many companies have struggled to meet annual contracting plans, the institute said.

In the spring of 2019, the number of job vacancies exceeded that of trainees in search of employment in about 380.000. As the situation should be similar in the spring of 2020, many companies, especially small and medium-sized enterprises in rural areas, are likely to face more hiring difficulties.

Source: Jiji | Yomiuri Shimbun

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