Japan’s low birth rate crisis becomes an opportunity for Gen Z. Japan is now offering free housing and college tuition due to high demand for professionals.
With the crisis of low birth rates in Japan, in addition to the aging population, the country faces a labor shortage scenario that has transformed the country's job market. This reality, despite being challenging, has generated unprecedented opportunities for Japanese Generation Z, which benefits from fierce competition between companies to attract young talent. In one such initiative, Japan offers free housing and college tuition.
Japan offers free housing and college tuition up to $22
According to a report by the Shushoku Mirai Kenkyusho research institute, more than 40% of Gen Z graduates in Japan have received at least one job offer before they even graduate in 2024 due to Japan’s low birth rate crisis. This increased demand for new professionals has led companies to offer incentives such as student loan repayment, subsidized housing, and other attractive benefits.
Companies have invested heavily in strategies to attract young professionals, so Japan offers free housing and college tuition to students. Tokyo Energy & Systems, for example, offers up to 20 yen, equivalent to US$127, per month towards student debt repayment, with a ceiling of approximately US$22.800.
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Nippon Life, one of Japan's largest insurance companies, has built dormitories for its employees, allowing them to save significantly on rent, paying less than a third of the average cost of a comparable home in the region.
Japan's youth population shrinks by 36%
In addition, companies like Itochu are expanding these initiatives. The company has invested in modern accommodations for its employees, with benefits such as included meals, a cafeteria and even a sauna. A similar space will open this year, geared towards female employees. With the workforce of 20- to 24-year-olds having shrunk by 36% in the last 30 years, the competition for talent is fierce.
In this way, Japan offers free housing and college, in addition to other increasingly attractive conditions for recruiting and retaining young workers, especially due to the language barrier, which still makes it difficult to integrate foreign talent.
Although Japan has adopted measures to attract international labor, many companies continue to prioritize local Generation Z workers. This preference reflects, in part, the difficulty of cultural and linguistic adaptation, but also the Japanese tradition of betting on national talent.
Understanding Japan's low birth rate crisis
Japan’s cost-of-living crisis, compounded by inflation that reached a 41-year high in late 2022, is also playing a role in these measures. Rising prices for basic items like ramen have hurt purchasing power, making benefits offered by companies even more valued by Gen Z workers.
The model adopted by Japan, whereby it offers free housing and college tuition, could serve as a model for other countries facing similar challenges related to Japan’s low birth rate and labor shortage. Investing in incentives for young professionals not only helps to alleviate the labor shortage, but also provides a more stable foundation for future economic growth.
Japan's Generation Z, in turn, finds a job market that, despite being challenged by demographic crises, is willing to invest in its future. This situation transforms what would otherwise be a crisis into a unique opportunity for young people entering the market.
And how do I apply? Normally, Japanese companies only hire decent people or spouses.
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I would like to know how I can apply for the position.