Market Overview

Based on sales from service providers, the total employment services market for long-term care, healthcare, and childcare was valued at 454.7 billion yen in FY2024, marking a 0.7% year-over-year decrease. The market is expected to increase by 2.7% year-over-year in FY2025, reaching 467.0 billion yen.

Although long-term care, healthcare, and childcare sectors underpin public infrastructure, they are experiencing chronic labor shortages and high turnover rates at work sites. This has increased the use of employment services. In FY2024, recruitment and job posting services were the main drivers of employment services in the long-term care sector. In the healthcare sector, there was increased demand for full-time physicians, nurses, and chemists. Conversely, employment services for childcare workers experienced negative growth due to workers' reluctance caused by low wages and heavy responsibilities, resulting in fewer workers in this field.

Robust demand for employment services in the long-term care and healthcare sectors is anticipated to continue in FY2025. As the childcare sector is expected to secure financial resources to improve worker treatment, growth in employment services is anticipated across all three sectors.

Noteworthy Topics

The Reinstatement and Empowerment of Potential Workers are Challenges in the Childcare Sector

Despite the ever-intensifying shortage of childcare workers, this occupation is not highly regarded. Although national qualifications are required, childcare workers need to endure low wages despite their heavy workload and responsibilities. Consequently, many job offers are refused. There are over a million potential childcare workers* who are qualified but choose not to take childcare jobs. Reinstating and empowering these workers is a significant challenge for the industry.
*) Source: “Comprehensive Initiatives for Securing Childcare Workers” by the Children and Families Agency

Future Outlook

The employment services market for the three sectors, i.e., long-term care, healthcare, and childcare, is expected to trend upward. In the long-term care sector, the supply and demand of workers is in tight balance because the baby boomer population has reached advanced old age, which is defined as 75 years and older. Therefore, employment services for this sector remain robust, even under a model centered on full-time employees. Employment services for the healthcare sector are anticipated for stable growth, due to the increasing demand for medical and welfare workers expected in the medium-to long term in the context of a super aging society. Despite concerns about oversaturated demand for childcare workers due to fewer children, the employment services market for the childcare sector is expected to grow. This growth is driven by increasing commitments from municipality-operated businesses to private companies, a growing number of dual-income households, and greater use of employment services when changing jobs.

Research Outline