ABSTRACT
The Japanese labor market is increasingly paradoxical. A shrinking and aging population should produce a natural downsizing of the labor market with a corresponding opening of job opportunities, yet the job market for new, young employees has in fact become increasingly severe. Similarly, the lingering economic recession coupled with an aging and shrinking population should naturally adjust employment markets through attrition (retirement); however, the job market for young workers has actually been shrinking. High levels of unemployment have persisted, not only because of job scarcity due to recessions but also because of job mismatch. Job mismatch for older workers typically occurs when their skills become obsolete and unable to meet employers’ expectations. In Japan, though, the problem is acute even among recent college graduates. This mismatch involves the expectations of corporate recruiters and college graduates.
