#Japan #Cybersecurity #Tokyo #Randstad #IT Talent

An Overview of Randstad's Recent Findings

On October 22, Randstad Co., Ltd., a leading provider of comprehensive human resource services based in Chiyoda, Tokyo, released its latest market and salary report for the IT and technology sectors in Japan. This report offers a thorough analysis of the Japanese IT job market, focusing on the supply-demand dynamics of digital talent across seven job categories.

The Double Challenges Facing Japan's Digital Workforce

Japan's labor market is at a critical juncture as it confronts two significant challenges: the aging population and the rapid adoption of AI and cloud computing technologies. Despite a stable economic foundation, the nation faces a quiet crisis with a predicted unemployment rate of just 2.4%, truly indicative of Japan's labor market strength. However, this hides a persistent labor shortage, leading to forecasts where Japan could see a labor shortage of up to 11 million individuals by 2040 if current trends continue.

To address these critical shortages, the government has initiated reforms aimed at rectifying income disparities and increasing wages through a "new tripartite framework" for the labor market. In parallel, companies are adopting flexible working arrangements, extending retirement ages, and actively welcoming foreign workers. The influx of foreign labor is expected to reach an all-time high of 2.3 million by October 2024.

Rising Demand for AI and Strategic Professionals

The demographic realities are pushing Japan towards the increased integration of AI and automation into its workforce. Rather than merely replacing jobs, AI is examined as a crucial assistant that enhances productivity and opens new career paths for professionals.

Remarkably, by mid-2025, job postings for cybersecurity specialists are expected to skyrocket by over 500%, illustrating an urgent and rapid increase in demand. Simultaneously, data engineering roles are anticipated to grow by approximately 300% within the same timeframe.

Japanese enterprises prioritize talent placement in technology with a strong focus—52% rank cloud, containers, and virtualization as the top areas, while 51% mark cybersecurity as a pivotal field indicative of the shift towards secure cloud environments.

However, this rapid expansion brings forth a significant AI skills gap. More than half of Japanese companies lack essential expertise to effectively utilize AI. Alarmingly, only 25% possess the necessary knowledge for customizing and fine-tuning AI models. This highlights an urgent need for targeted talent development.

A Flexibility-Gap in Japan's Workforce

A notable challenge in the labor market is the mismatch between employee expectations for flexible working and corporate strategies. Many job seekers highly value flexibility and remote work options, with around 90% preferring completely remote positions.

Flexibility in work location is now the leading cause of turnover in Japan, diverging significantly from global trends, with 39% citing this as their primary reason for leaving jobs. This emphasizes that modern Japanese employees consider the ability to choose their work location as crucial.

The prevalence of remote-work associated roles is particularly high among specialized fields like cybersecurity and tech sales, with 58% of job postings offering remote opportunities, signaling a clear shift from traditional office environments.

Regional Disparities in Compensation

Compensation levels for IT talent reflect sharp geographic disparities tied to economic standings and concentration. A significant concentration of senior and strategic IT professionals—such as architects and product/DX managers—can be found in Tokyo, which offers salaries at least 20% higher than the national average.

However, regions like Osaka, Aichi, and Saitama present cost-effective alternatives for expanding mid-level teams. These areas display smaller wage gaps between senior and mid-level positions compared to Tokyo, paving the way for finding skilled labor at competitive costs. Strategic roles such as IT strategy consultants, and DX managers rank the highest for compensation across the country.

Insights from Randstad on Achieving High Salaries

According to Richardson Alexander, Associate Director of Randstad's Digital Talent Solutions division, achieving high income levels in the Japanese market requires extensive project experience within large organizations, proficiency in both Japanese and English, strong communication skills, and specialized knowledge in relevant industries. While demand spans various roles, the most intense competition is observed among mid-level positions with salaries between 10–15 million JPY. This segment particularly emphasizes individuals with high contributions who can engage closely in communication-heavy management roles.

Additionally, candidates find non-monetary incentives such as flexible working arrangements, particularly remote work options, increasingly attractive. Most candidates strongly prefer fully remote positions, and this trend points towards a crucial competitive edge for companies to forge strong relationships with potential hires, demonstrating proactivity in the hiring process.

This research provides companies with practical insights to navigate the rapidly evolving Japanese IT and digital talent ecosystem. Success hinges on filling critical skill gaps, adapting to new paradigms of work, and leveraging technology as a catalyst for growth.

Download the Randstad Report

The full market and salary report titled "Randstad Japan's IT & Technology Industry Market & Salary Report 2025" is available for free download at the following link: Download Here.

Research Methodology

The research involved analyzing secondary data on talent supply, demand, salary, and market competitiveness using resources from job sites, professional networks, LinkedIn, as well as external data from labor market analysis companies like Lightcast and salary platforms such as Salary Expert.

About Randstad

Founded in 1960 and headquartered in the Netherlands, Randstad NV operates in 39 countries, employing around 41,400 staff members. The company aims to become the world’s most equitable and specialized human resource provider by supporting talent in an environment facing labor shortages. More information can be found at their website.