Japan job market score cut as hiring slows and energy costs rise

We lowered Japan's job market score from 8.9 to 8.6 on Country To Live. Wage talks still look strong, but hiring momentum has cooled and higher energy prices could squeeze the recovery movers were counting on.

This is an editorial score for people comparing countries on our site. It is not a hiring forecast or visa advice.

Why we changed the score

• Employment growth slowed in 2026. Deloitte's Japan economic outlook notes total employment growth has weakened on a year-ago basis, with unemployment edging up to 2.6% in February versus about 2.4% on average in 2019.
• Job openings per applicant are trending down. The same report says the ratio of openings to applicants has fallen, a sign the labor market was softening before the latest Middle East energy shock.
• Energy costs threaten the wage story. Brent crude and Asian LNG prices jumped sharply by mid-March 2026. Deloitte warns sustained high oil and gas prices could push inflation back up and weigh on consumer spending just as workers were finally seeing better real pay.
• Wages are up, but that is not the whole file. Shunto union deals still point to raises around 5.3%, and cash earnings rose 3.3% year on year in February. We kept part of Japan's strength in the score, but hiring breadth matters for foreign professionals comparing Tokyo offers.
• Other Japan scores are unchanged this round. Safety, infrastructure, and public transport on the Japan country page still reflect long-term strengths. Only job market moved.

What the number means on our site

Job market on Country To Live measures how strong we think hiring, career mobility, and local wage opportunity look for a typical international mover. A 8.6/10 keeps Japan near the top of our table, but below where it sat before this labor-market pause and energy-risk update.

Open the Japan country page for the full breakdown, or run Japan vs South Korea and Japan vs Singapore if employment trends are your tie-breaker. Browse all country scores to see where Japan sits after this cut.

We will publish another update if employment growth firms up for several months or if job openings stabilize while inflation stays contained.

This note explains our editorial scoring only. It is not career, immigration, or financial advice.