THE GIST
For decades, Japan's corporate ethos has been built on uniformity, hierarchy, diligence, and social harmony. The fact that demographic pressure is now reshaping to allow more authenticity into jobs and a departure from norms tells us something profound about Japanese society. That there are more jobs than people.
In March 2025, there were 1.26 job openings for every 1 job seeker. A high job availability ratio means it's a buyer's market. Which means from dyed hair to nail art, everything goes.
WHAT HAPPENED
Big listed firms like Japan Airlines to subway operator Tokyo Metro and domestic budget carrier Skymark Airlines, have all been easing up on the dress code to appease (and keep) their staff recently.
Japanese drugstore chain Fuji Yakuhin removed many restrictive rules: employees (non-pharmacists) can choose any hair color, have nail art, heavy makeup, rings, and supermarket operator Tokyu Store similarly loosened rules on accessories, piercings, nail paints, and hairstyles.
There has been a 16% drop in the working-age population since 1995. Companies now need to compete not just on pay, but on working conditions, culture, and more flexible norms. When labor shortage is not just a demographic issue but a market power issue, part-time workers gain more leverage. Exactly how bad is the problem, you wonder? In 2024, there were a record high of 342 bankruptcies attributed to labor shortages, underscoring just how severe the worker gap has become.
WHY IT MATTERS
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Japanese work culture traditionally valued conformity to maintain social harmony. So easing up on the black hair, light makeup, neutral nails, standard suits isn't just about appearance, it's about uniformity.
And a paradigm shift from that speaks for deeper shifts in labor relations. Companies are rethinking not just wages but work culture. The fact that firms are adjusting non-wage aspects of work suggests that the labor shortage is pushing them to innovate in how they attract labor.
WHAT NEXT
The future is Japanese companies adapting to the workers, not the reverse. Only about 54.8% of Japan's total population was employed in 2024. Harmony is not part of the work dynamic, it is the work dynamic. And it is at the core of Japanese culture. Whether it's polishing every powerpoint presentation like art or spending hours at the office because attendance is a badge of honor — the traditional business culture of Japan is dealing with this sharp 180 with this worker-centric culture. Total corporate bankruptcies in 2024 reached 10,070, up 13.4% on the year before. It's not that companies can't find workers, more that they cannot keep them. And that hints at a larger problem that needs a structural reset.
The change has begun but until it fully transforms, legacy firms will still persist. So change may remain uneven, creating a two-tier labor culture and parallel worlds coexisting and working together. But it's not just the dress code and personal expression, but also time spent at work. Beginning April 2025, the Tokyo Metropolitan Government started offering a 4-day workweek option for its government employees.
But until everyone is on board, there will still be many ways to say thank you.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
