Easy English News: Japanese Firms Block Unwanted Job Hops to Retain Talent

TOKYO — Businesses in Japan have initiated employment evaluations starting June 1 for graduates set to complete their universities in the spring of 2027. Certain companies are ceasing employee transfers unless approved by the employees themselves. They aim for this measure to assist in retaining skilled staff.

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Shifts in work environments and relocation policies have become significant not just for employees, but also for students seeking employment opportunities.

At the headquarters of Daiichi Life Insurance Company in Chiyoda Ward, Tokyo, students attended job interviews on June 1. There was no specific attire required. Some students dressed in formal wear, while others opted for casual shoes.

The organization will discontinue "transfers without permission" for administrative positions starting in fiscal 2027. It mentioned that job applications have increased approximately 20% compared to the previous year. Several students indicated that this policy adjustment was a factor in their decision to apply.

Sota Hosokawa, 21, a final-year student at Yokohama National University, stated, "I aim to embrace opportunities across the country while I am still young. However, in the years ahead, I might require more time for my family. I prefer to remain adaptable, as I also wish to continue progressing in my professional life."

Akiko Nagaya, who leads recruitment at Daiichi Life Group Inc., stated, "The finance sector has traditionally been seen as one that moves employees across the country. However, we must evolve to allow individuals to define their own career journeys."

Several businesses are modifying their transfer policies due to concerns that unnecessary relocations cause employees to quit, and complicate the recruitment process.

Daido Life Insurance Co. halted employee transfers without staff consent in April 2026 for those in managerial positions. These employees have the option to relocate across over 100 locations within Japan. The firm requested employees' preferred destinations. During the April restructuring, over 90% of career path workers were assigned one of their top three choices. Employees who actually relocating could receive as much as 150,000 yen.

Mitsui Sumitomo Insurance Co. introduced a new policy in fiscal year 2026. Employees can now continue working in the prefecture of their choice. The company aims to eliminate unnecessary job rotations and allow staff to shape their own professional journeys.

Additionally, in April 2026, Tokio Marine & Nichido Fire Insurance Company allowed employees to decide whether they would agree to job rotations. Some staff members mentioned that this policy simplifies future planning.

(Akihiro Kawakami's Japanese version, Tokyo City News Department)

Vocabulary

move: to be relocated from one location to another by an organization

assessment: an evaluation or examination used to select individuals

consent: agreement to something

uses: documents or digital applications submitted to apply for employment

financial: about money

sector: a part of the economy, such as automobiles or finance

Management path: a program designed for aspiring leaders

reassign: a shift in roles or locations

South Korea Jobs Fall 40K, Ending 17-Month Rise

Although there was a surge in semiconductors, the number of employees fell last month for the first time in 17 months because of ongoing impacts from the conflict in the Middle East, such as slow progress in manufacturing and construction.

As per the "May Employment Trends" published by the Ministry of Data and Statistics on the 11th, the total number of individuals aged 15 and above who were employed during the previous month stood at 29.12 million, representing a drop of 40,000 compared to the same period last year. This indicates the first reduction in job figures after 17 months, following a decline of 52,000 in December 2024. In this year, employment rose by 108,000 in January, grew beyond 200,000 in February and March, but later decreased by 74,000 in April.

The proportion of people aged 15 years and above who are employed compared to the total population stood at 63.3%, representing a decrease of 0.5 percentage points from the previous year’s corresponding period. This marks another month of reduction after a fall of 0.2 percentage points recorded in April.

◇Employment in the manufacturing industry fell by 140,000...the biggest drop since February 2019

Job numbers in the manufacturing industry, a vital sector, fell by 140,000 during the last year. This represents the 23rd straight month of reduction, with the pace of drop exceeding twice that of April (-55,000). The fall was the biggest seen since February 2019 (-151,000), which is the first such occurrence in 7 years and 3 months. Manufacturing relies heavily on energy sources like metals, fabrics, and chemical products. An individual from the data analysis team stated, "Jobs were lost particularly within the auto and rubber/plastic industries," noting, "Although exports have been boosted recently due to semiconductors, this area doesn’t contribute significantly to overall job figures."

Construction industry employment, influenced by rising material expenses, dropped by 43,000. Jobs in the wholesale/retail and hospitality/eating establishments industries, which are strongly linked to local consumption, fell by 17,000 from the previous year's figures.

◇The youth unemployment rate has been falling for more than two consecutive years

The unemployment rate among young people aged 15 to 29 stood at 43.8%, representing a decrease of 2.4 percentage points compared to the same period last year. The youth jobless rate has continued to fall for 25 months starting from May 2024. This extended downturn marks the longest such trend since the prior high of 51 straight months between September 2005 and November 2009.

Persistent slow growth in job opportunities for young people is linked to the slowdown in major sectors including manufacturing and construction, businesses favoring candidates with prior experience, and lower recruitment rates caused by the increasing use of artificial intelligence (AI). Indeed, jobs within the professional, scientific, and technical services industry—covering numerous professions like law, accounting, and architecture—fell by 89,000 during the past month when compared to the previous year’s figures. This represents the sixth straight month of reduction starting from December last year (-56,000).

Last month’s unemployment rate stood at 2.9%, an increase of 0.1 percentage point compared to the same period last year. This rise was mainly attributed to individuals aged 30s and 20s. The jobless rate among people in their 20s reached 7.1%, rising by 0.4 percentage points from the previous year, whereas the figure for those in their 30s climbed to 3.2%, marking an increase of 0.6 percentage points. According to the study, extended challenges in finding work during younger years have contributed to elevated unemployment figures among those entering their 30s, as many lacked sufficient professional background when transitioning into this age group.

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