World of HR: Just 19% of large companies in Japan plan to hire new graduates next year

It’s graduation season, but unfortunately for many new workforce entrants and rising seniors, some companies across the globe are decreasing their entry level hiring efforts.

Where in the world? Just 19% of 111 major companies surveyed in Japan plan to increase recruitment of 2027 graduates, according to a new survey from the Yomiuri Shimbun, the Japan News reported. Another 18% expect to recruit fewer graduates in 2027 than they did this year, a five-point increase.

Agricultural machinery company Kubota Corp., for example, said it will recruit just 60 new graduates in 2027—one-quarter the number it recruited the year prior.

The few companies that plan to recruit more recent graduates said they’ll do so for operations and digital transformation roles.

Some companies will instead focus on increasing recruitment of mid-career employees and improving operational efficiency. Others, like Fujifilm Holdings Corp., plan to hire more foreign workers, Japanese newspaper the Mainichi reported.

“An increasing number of companies may not make active recruitment efforts due to short-term uncertainties, such as the deteriorating Middle East situation, as well as medium-term and long-term influences resulting from moves to improve operational efficiency utilizing artificial intelligence,” Hiroshi Ono, a professor at Hitotsubashi University Business School, told the Japan News.

Satellite view. While the unemployment rate for college graduates in the US has risen in recent years (5.7% by Q4 2025), some recent data shows signs of hope, the Wall Street Journal reported. New graduate hiring is expected to increase by 5.6% this Q2, and companies like McKinsey and Salesforce said they’ll increase early career hiring.

Despite this, Shawn VanDerziel, president of the National Association of Colleges and Employers, told the Wall Street Journal that there’s still reason for concern. “It’s good news, but it does need to be moderated with the fact that the last two years’ hiring has been down considerably.”