No.2401
04/10/2020

New Graduate Recruitment Support Services Market in Japan: Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) has conducted the domestic market of new graduate recruitment support services and has found out the market trends by service, trends of market players, and future outlook.


Transition of New Graduate Recruitment Support Services Market Size
Transition of New Graduate Recruitment Support Services Market Size

Market Overview

Market size of new graduate recruitment support services for FY2018 rose by 5.7% from the previous fiscal year to achieve 125,262 million yen.

Because of a concern over potential future shortage of labor and human resources, companies show strong intention to employ new graduates, which is continuously driving the seller’s market, advantageous for job-hunting students. This has led a student to easily receive an unofficial job offer without excessive job hunting. Therefore, the number of registrations to job information websites by job hunting students and participants for job fairs is decreasing. In addition, the sellers’ market is bringing about more student applicants to concentrate in major companies or well-known companies for their jobs, which is making many small-to-mid size companies or local companies difficult to recruit new graduates.

Major companies considered as advantageous for recruiting new graduates now need to take longer hours for ever-diversifying recruitment tasks, such as internship preparations, final decision for selecting the students, preparation of accepting those newly hired, measures to prevent informally employed students from continuing their job hunts or from turning down the job offers by approaching them at an earlier period or by taking whatever methods to secure them. In addition to such diversified tasks, major companies have begun facing a challenge to grope for the accuracy of screening and selecting the potential employees from vast number of students registered for job information websites and job fairs.

On the other hand, many of small-to-mid size or local companies finding difficulties in recruiting new graduates are accelerating shifting their recruitment activities from depending on job information websites or online “navi (navigations)” to using of more-effective recruitment support services such as new graduate recruitment support services and some events for small-to-mid size or local companies to match with job applicants that directly connects to employment.

By solving the issues of recruiting new graduates at companies, the demand for new graduate recruitment services is increasing, and more diversified services are needed. 

Noteworthy Topics

As More Companies Recruit New Graduates Year Around, Recruitment Support Services Diversified

In April 2019, KEIDANREN (Japan Business Federation) and universities made an agreement to reconsider the conventional system of recruiting new graduates at a certain period simultaneously, and instead to press ahead with introduction of year-round recruitment. A full-scale shift to year-round recruitment of new graduates is likely to encourage recruitment of those previously graduated, or those recently graduated but currently non-employed as well as non-Japanese human resources more vigorously.

The demand for recruiting the previously graduated or the recently graduated but currently non-employed is increasing mainly at small-to-mid size or local companies, aiming to secure relatively young workforces just in case of failing to employ new graduates. To meet the demand, new graduate recruitment support service providers have increased or started focusing on the services to recruit young people in 20s, while they continue developing the service to help recruit new graduates.

The demand to recruit non-Japanese human resources including students has become stronger at R&D in information processing such as IT or mechanical and electrical service engineering difficult to secure enough number of Japanese new graduates, or at workforces that require foreign language and communication skills such as trading business, translation, interpretation, and other overseas related jobs. Also, there are growing cases of employing non-Japanese students aiming at coping with rapidly increasing inbound tourists mainly at those industries of accommodation, retail, food & beverages, and services, which is expected to improve customer satisfaction through smooth communication with the customers or to avoid opportunity losses.

Future Outlook

The market size of new graduate recruitment support services for FY2019 is expected to achieve 128,643 million yen, a rise by 2.7% from the previous fiscal year, but declines by 0.4% to attain 128,129 million yen for FY2020.

During when the selling market continuous, i.e., advantageous for students, more companies are required to streamline the recruitment processes, as the recruitment tasks becoming diversified and the laws related to workstyle reform being enacted. Therefore, streamlining or labor-saving of recruitment activities are highly needed, which is projected to expand the demand for new graduate recruitment support services.

On the other hand, many of the events in March 2020 including job fairs were canceled or postponed as a measure to prevent the spread of COVID-19 infection, which is likely to reduce the market size of events and seminars, affecting the FY2020 new graduate recruitment support service market to turn for the worse.

Research Outline

1.Research Period: November 2019 to March 2020
2.Research Object: University corporations, new-graduate recruitment support service providers, etc.
3.Research Methogology: Face-to-face interviews by the expert researchers, surveys by telephone, Fax, and email, and literature research

New Graduate Recruitment Support Service Market

The new-graduate recruitment support service market in this research refers to the market of the services used by newly graduating university students (including students in junior colleges and graduate schools) for job hunting. The research targets are the following seven categories: Recruitment information websites, Event/seminars, New graduate staffing, New graduate outsourcing, New graduate assessment tools, Support services for prospective employees, and Direct recruitment services.

<Products and Services in the Market>

Recruitment information websites, Event/seminars, New graduate staffing, New graduate outsourcing, New graduate assessment tools, Support services for prospective employees, and Direct recruitment services.

Published Report

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