The Rising Costs of New Graduate Recruitment in Japan
In a recent trend report published by Circus Co., Ltd., the operator of the recruitment platform "circusAGENT," significant disparities in recruitment costs associated with new graduates have been uncovered. The analysis, based on data from the 2025 fiscal period, highlights important insights into hiring practices among different company sizes and industries.
Overview of the Report
The report utilizes candidate selection data from circusAGENT, focusing on companies that extended job offers to new graduates. Conducted during the period from April 1, 2025, to March 31, 2026, the study analyzed data from a sample of 665 companies. In order to ensure privacy, the report aggregates data only from categories with three or more confirmed placements, revealing the landscape of new graduate recruitment costs and expected salaries across companies of various sizes.
Key Findings
The data indicates that average recruitment costs for companies with fewer than 100 employees reached approximately 761,000 yen—1.4 times higher than the average of 538,000 yen for larger companies with over 1,000 employees. Interestingly, while the average expected salary for larger firms stands at 3,080,000 yen, smaller firms are offering an average of 3,611,000 yen, suggesting that in a competitive job market, small companies are compelled to provide more attractive offers to lure top talent.
The Seller’s Market and HR Challenges
The recruitment dynamics have shifted significantly, and small businesses are investing heavily in attracting young talent. Data from Recruit's “Employment White Paper” indicates that 20% of companies plan to utilize recruitment agencies for hiring new graduates, showcasing a doubling in engagement compared to a decade ago.
The primary factors driving this change include the increased workload faced by HR professionals and a heightened focus on candidate quality. A recent survey by Persol Research Institute reveals that 47.4% of businesses are experiencing increased recruiting time and workload, while another study by CareerTasu shows that 72.1% of employers prioritize the quality of candidates over merely filling positions.
As the job market continues to favor candidates, the efficiency of the recruiting process has become vital. Reducing recruitment efforts while ensuring quality candidates are hired has led to an uptick in demand for recruitment services, allowing companies to focus on meaningful interactions with potential hires.
Industry-Specific Averages
The report further breaks down the recruitment cost structure across seven major industries and twenty-two categories. Notable trends include:
- - Recruitment Industry: Companies focusing on recruitment show prominent costs with an average expected salary of 3,540,000 yen, while service fees sit at 911,000 yen—a stark contrast to lower averages in staffing agencies and BPOs.
- - IT and Consulting: Close examination reveals lower service fee rates in response to higher demand for positions in these sectors. The average expected salary for the IT and Web Services industry reached 3,799,000 yen, indicating a high demand.
- - Real Estate: This sector generally outperformed averages, with construction and infrastructure roles offering salaries significantly above the overall market.
Conclusion
The findings from the Circus AGENT report highlight the necessity for small to medium-sized enterprises to reevaluate their recruitment strategies in a tightening labor market. As the demand for top graduates intensifies, companies must invest not only in higher compensation and service fees but also in minimizing recruitment workload while fostering deep connections with candidates.
As a player in the recruitment industry, Circus Co., Ltd. remains committed to providing transparent market data through circusAGENT, supporting a fair, optimal recruitment environment conducive to the needs of hiring firms, agents, and job seekers alike.
About Circus AGENT
Circus AGENT is a BtoB platform designed to streamline the hiring process between companies and agents for both new graduate and mid-career recruitment. With around 1,800 registered agents and over 125,000 job listings as of May 2026, it facilitates more efficient talent acquisition for businesses.
For more information about our services:
Company Overview
Circus Co., Ltd. operates under the mission of "Finding HR Solutions Together," addressing structural challenges in HR through innovative technology and human engagement. Their diverse HR solutions aim to empower businesses to make decisions with confidence.
Location: 9F WORK VILLA KYOBASHI, 1-13-1 Kyobashi, Chuo-ku, Tokyo 104-0031
CEO: Takashi Yabe
Founded: July 2017
Capital: 29,560,000 yen
Business Scope: HR Tech and platform services, talent acquisition services
Website:
circus-group.jp