Survey of Corporate Attitudes Towards Wage Trends for 2020
Companies planning to hire full-time employees fall below 60% for the first time in six years
— Companies refrain from hiring due to CODIV-19 —
Amid a worsening labor shortage, the effective ratio of job openings to applicants for 2019 stood at 1.60, and continues at the high level, the similar level that was seen during the period of rapid economic growth (Ministry of Health, Labour and Welfare). Job offer tentative acceptance rate for new graduates was 87.1% (university graduates) as of December 2019, marking the second highest rate recorded since the survey began in 1996. (Ministry of Health, Labour and Welfare, Ministry of Education, Culture, Sports, Science and Technology). Furthermore, attention has been paid to supporting employment, such as the government starting success support for the employment ice age generation, through work and career enhancement, etc.
Therefore, Teikoku Databank has conducted a survey on corporate attitudes towards hiring trends for 2020. This survey was conducted in conjunction with the February 2020 TDB Trends Research.
*Survey period: February 14 – 29, 2020; Companies Surveyed: 23,668; Valid Responses: 10,704 (Response Rate: 45.2%). The survey on hiring has been conducted every year since February 2005, and this is the 16th survey.
*Details of this survey can be found on the dedicated Economic Trend Survey HP. (http://www.tdb-di.com/)
Primary points of survey results(summary)
- 1 Companies responding that they are planning to hire full-time employees in 2020 decreased by 5.0 points from that in the previous survey (implemented in February 2019), to 59.2%, a decline for the second consecutive year, and a substantial decrease to below 60% for the first time in six years. By size, “large companies” indicated high motivation to hire, at 82.9%, and in the 80% range for the seventh consecutive year. However, the percentage of “SMEs” responding this way was lower by 5.5 points from that in the previous survey, at 53.6%. While large companies continue to be positive about hiring full-time employees, the SMEs’ stance for hiring full-time employees is at a high level, but a careful recruiting attitude is seen.
- 2 Companies responding that they are planning to hire non-fulltime employees substantially decreased by 6.1 points from the previous survey, to 44.2%, and below 50% for the first time in three years. On the other hand, those sectors experiencing labor shortage show high motivation to hire non-fulltime employees. 90% of companies in “restaurants,” and more than 70% of five other sectors, such as “general retail trade” and “education service” are planning to hire non-fulltime employees.
- 3 According to comments from companies, many are refraining from hiring due to heightened uncertainty about the future because of COVID-19.
- 4 With respect to use of the status of “Employment Ice Age Generation Success Support Program,” 6.3% of companies responded “positively” about their use of the program (those that replied any one of “already used,” ‘currently using,” or “plan to use from now”). Also, 35.4% of companies responded, “do not use (cannot use),” while 23.9% of companies responded “do not know the program,” and one of four companies did not know the program.