Japanese Workforce Lags in ESG and Flexibility, But Change Is Coming

TOKYO, Aug. 6, 2025 /PRNewswire/ -- Japan's workforce is undergoing slow but significant transformation, even as it ranks the lowest across Asia-Pacific in ambition, mobility, and values-driven employment decisions. A newly released white paper by recruitment firm Reeracoen and research agency Rakuten Insight Global highlights how cultural norms around stability and tradition are giving way to quiet shifts in upskilling and flexibility.

The Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025, which surveyed over 12,000 professionals across 12 Asia-Pacific markets, reveals that Japan trails the region in several key workforce indicators. Only 24% of Japanese respondents strongly aspire to leadership roles, only 48% say ESG factors influence their employment decisions, and hybrid work adoption remains low at 33%.

"This report highlights a pivotal truth: the future of work in Japan depends on how well businesses can balance tradition with change," said Kenji Naito, Group CEO of Reeracoen. "While the data shows Japan ranks lowest in ambition, mobility, and ESG alignment, it also reveals an opportunity. Organisations that respond to these shifts through flexibility, purpose, and skills development will lead the next chapter of Japan's growth."

Key Findings from Japan:

• Conservative Career Ambitions: Only 24% of Japanese workers strongly aspire to leadership roles, well below the APAC average of 37%.
• Limited ESG Influence: Only 48% of respondents evaluate CSR or ESG commitments when choosing an employer. This is the lowest score in the region.
• Slow Progress on Flexibility: While 65% of respondents say flexibility is important, only 33% currently have access to a hybrid work arrangement.
• Reluctance to Relocate: Japan has the lowest rates of openness to relocation, with only 9% of respondents open to moving overseas for work.
• Upskilling Gathers Momentum: There are encouraging signs that Japanese workers are taking more ownership over their career development. One in three workers (33%) are now pursuing skills development independently, primarily through certifications and online platforms.
• Conservative Salary Expectations: Only 13% expect a pay rise of more than 10% this year, compared to 21% regionally.

As Japan's demographic challenges intensify and global competition for skilled talent increases, the need to adapt is becoming more urgent. Lifetime employment and seniority remain strong anchors; however, the data suggests that quiet and meaningful changes in areas such as hybrid work and digital learning are already underway. Employers that enhance their policies around flexibility, ESG, and upskilling will be better positioned to attract younger, more globally minded professionals.

"Japan's labour market is quietly but steadily evolving," said Kosuke Soejima, Managing Director of Reeracoen Japan. "As global trends accelerate, our clients are recognising that attracting and retaining talent requires more than stability. It demands purpose, trust, and flexible, human-centric work models."

The whitepaper synthesises insights from over 12,000 respondents across the APAC region, including Japan. It provides both regional analysis and market-specific breakdowns to support workforce benchmarking and strategic planning.

For more information, visit https://www.reeracoen.sg