Japan's workforce trails behind in ESG (Environmental, Social, and Governance) standards and flexibility, yet change is on the horizon.
The Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025 provides a comprehensive analysis of the evolving workforce landscape in Japan and across the Asia-Pacific region. With insights from over 12,000 respondents, including Japan, the report highlights a gradual but significant transformation in Japan's workforce, characterized by a shift towards greater upskilling, flexibility, and a quieter emphasis on purpose and values-driven employment [1][2].
Despite this progress, Japan lags behind other Asia-Pacific markets in key areas such as ambition, mobility, and Environmental, Social, and Governance (ESG) priorities. For instance, only 24% of Japanese respondents strongly aspire to leadership roles, a comparatively low drive for career advancement relative to regional peers [1][2]. Similarly, only 48% of respondents say ESG considerations affect their employment choices, indicating a weaker emphasis on values-driven employment decisions compared to other APAC countries [1][2].
Hybrid work adoption in Japan also remains limited, with only 33% of the workforce engaging in hybrid work arrangements. This figure demonstrates a slower uptake of flexible work models than in the broader Asia-Pacific region [1][2].
However, the report also underscores emerging trends toward flexibility, purpose, and skills development reflecting changing worker expectations. Traditional values emphasizing job stability and conformity remain influential, but these are gradually being supplemented by a desire for work-life balance, meaningful work, and respectful environments [1][2].
Kenji Naito, Group CEO of Reeracoen, emphasizes the importance of balancing tradition with change in shaping the future of work in Japan. He states that businesses that effectively navigate this balance through enhanced flexibility, meaningful work, and continuous upskilling are positioned to lead Japan’s next workforce growth phase [1][2].
The report also provides insights into Japan's labour market challenges. With a tight labour market constrained by demographic pressures such as an aging population, wage growth has accelerated to a 34-year high. Companies are seeking productivity gains amid workforce shrinkage through investment in automation and technology sectors [3].
Moreover, worker dissatisfaction is rising, with many Japanese employees reporting burnout, loneliness, and inflexibility, especially younger generations. To address these concerns, companies are increasingly focusing on improving work conditions, retention through higher salaries, clearer communication, stress reduction, and fostering personal development opportunities [4].
In summary, the whitepaper portrays Japan’s workforce transformation as a gradual but critical evolution. While Japan trails the region in several key workforce indicators, the report offers a roadmap for organizations to navigate and lead this change effectively [1][2]. Employers that enhance their policies around flexibility, ESG, and upskilling will be better positioned to attract younger, more globally minded professionals in Japan.
For more information, visit https://www.reeracoen.sg.
References:
[1] Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025 [2] Kosuke Soejima, Managing Director of Reeracoen Japan [3] Various sources on Japan's labour market challenges in 2025 [4] Various sources on improving work conditions and retention in Japan
Businesses in Japan should focus on enhancing their policies related to flexibility, Environmental, Social, and Governance (ESG), and upskilling to attract younger, more globally-minded professionals and align with the evolving workforce landscape in the country. The report reveals that key areas such as ambition, mobility, and ESG priorities are lagging behind other Asia-Pacific markets in Japan.
%20standards%20and%20flexibility%2C%20yet%20change%20is%20on%20the%20horizon.){kind=link}