#### Chapter 3. Changes in acquisition and development of human resources in the labour market Section 1. Human resources sought by companies in recruitment of new school graduates

As already seen in Chapter 2, in order to strengthen the competitiveness of the Japanese economy in the midst of changes occurring to the circumstance surrounding Japanese economy and employment structures, the human resources are essential as the source of competitiveness.

About half of the new hiring is hiring those who changed jobs; the ratio of hired persons who changed jobs to all employees shows the tendency of increase, but is at a low level of around 10% at the present moment. When recruiting young people, companies are placing more emphasis on personality, such as enthusiasm, ability to take action and cooperation; competencies that companies expect for young employees are the ability to approach and deal with others, creativity and initiative.

In order to assist employment of young people, companies should make further efforts to more clearly define what kind of human resources they are seeking, and universities should endeavor to improve students' abilities and promote student internships. The government should promote strengthening of collaboration and information sharing among organizations of small and medium-sized enterprises, Hello Works, universities, and other entities.

## (In large business establishments, the persons hired after their job change tend to increase)

Looking at the inflow of workers regularly employed at business establishments according to Figure 25, in and after 1981, the number of persons hired after their job change consistently accounted for about half of the new hiring, and the ratio of hired persons who changed jobs to all employees shows the tendency of increase, but is still at a low level of around 10% at the present moment. In and after 2001, the general hires without job change (except new school graduates) and persons transferred within from the same company (personnel relocation) have been exceeding the new school graduates hired without job change; it is inferred that companies have reallocated their employees to other departments, as a more moderate way to adjust employment. In the new hiring of full-time workers excluding part-time workers in companies with 1,000 or more employees, the hiring those who changed jobs have come to account for a large portion.

## (Human resources sought by companies and challenges for university students)

When recruiting young people, companies are placing more emphasis on personality, such as enthusiasm, ability to take action and cooperation.

According to Figure 26, among the fundamental competencies for working persons, which are considered important by companies, a competency that companies consider is lacked by young employees is the ability to approach and deal with others, followed by creativity, initiative, problem-finding ability, ability to transmit messages and planning ability.

For the recruitment of young regular employees, the ratio of the companies placing emphasis on the immediate fighting strength decreased, and the ratio of the companies which place the same level of emphasis on both the potential and the immediate fighting strength is increasing.

University students generally have high motivation for employment. In response to the actual economic trends, the students who have willingness to enter a small and medium-sized company tend to increase. Opportunities for job applications are broadened through effective use of the Internet in job-seeking activities; the challenges are to deepen the students' career views to further substantiate the image of the working persons they strive to be, and to ensure efficient and effective matching between companies and students.

In a macro perspective, there is a concern that academic skills of university students are declining; students must make efforts for improvement of basic academic skills, etc. during their school lives, in order to have the opportunity to reach the real recruitment process including job interviews. On the whole, 60% or more of the companies are taking into account the universities the students have graduated from, and in recruiting activities, there is a tendency of putting more efforts into on-campus seminars. In the background, the number of students' entries at the stage of application has become large due to the Internet recruitment among major companies, and that the number of graduates recruited from targeted universities is increasing while the quality of students have become more diversified.

Universities should endeavor to improve students' abilities and promote student internships, thereby help the students to develop career views, and companies should make further efforts to more clearly define what kind of human resources they are seeking. The government should promote employment of young people, by strengthening collaboration and information sharing among organizations of small and medium-sized enterprises, Hello Works, universities, and other entities.