Shukatsu: Understanding Japan’s Unique Job-Hunting System

This post is a transcript of my YouTube video about Shukatsu.
`Shukatsu` is the unique Japanese job-hunting process, primarily for university students. It’s a highly competitive system that can offer both great opportunities and immense pressure.

But what exactly is `Shukatsu`, and how does it work? Let’s dive into the world of Japanese job hunting and uncover the strategies and challenges faced by students.

If you prefer watching, please check the videos below!
🎥 Watch on YouTube


How Shukatsu works in Japan

In Japan, most university students begin their job hunt during their third year and secure a job offer before they even graduate.

Despite having little work experience, many students actually receive multiple job offers. In fact, around 95% of the class of 2024 successfully found employment.

The majority of new graduates start their jobs on April 1st of the year they graduate. However, due to their lack of experience, most companies initially provide comprehensive training programs. I personally went through a three-month training period.
Of course, we receive a salary during this training period.

The Downsides of Shukatsu: What Students Really Think

You might think that “Shukatsu” sounds like a beneficial system for students, but what do Japanese students really think about the process?

According to a survey by 株式会社学, over 90% of students reported feeling some anxiety about Shukatsu. Their top concerns include whether they’ll receive a job offer, find a company they like, and secure their desired position. These anxieties are quite common due to several factors.

Reason 1

Many large corporations in Japan offer new graduate positions that don’t require prior work experience. However, these positions are typically only available to recent graduates. Once you’ve been out of university for a while, it becomes much more difficult to enter these companies, especially without any work experience.

Moreover, some companies offer preferential treatment to employees hired through their new graduate programs.
Given that many Japanese companies still have seniority-based systems, these employees can expect to climb the corporate ladder relatively quickly and enjoy higher salaries earlier in their careers.

This creates a strong incentive for students to secure a position with a major company right out of university.

Reason 2: The Challenge of Finding the Perfect Fit

Before we dive into the third reason, let’s talk about the sheer number of companies hiring new graduates. According to the Nikkei Business, there are approximately four million companies offering new graduate positions in Japan.

With so many options, how do the students find the company that is the right fit for them?
Since students are juggling both their studies and their job search, they have limited time to research and apply to various companies. As a result, many students tend to focus on well-known, large corporations. While this might seem like a safe bet, it often leads to another problem.

Reason 3:The Fierce Competition for Top Companies

When a large number of students apply to a small number of highly sought-after companies, the competition becomes incredibly intense. For instance, according to Toyo Keizai, the competition ratio to get into a company like Itochu Corporation can be as high as 314:1. Similarly, a food processing company like Kagome can have a competition ratio of 315:1. With odds like these, it’s no wonder that many students struggle to secure positions at their dream companies.

If a student only applies to these prestigious companies, he of she must miss out on the opportunity to secure a new graduate position.

What If Students Miss Out?

If students miss out on the new graduate job market, what options do they have? There are several options for them.

First: For now, get into any company that’s hiring.

They could choose to accept a position at any company that hires them. Given the number of companies in Japan, there are plenty of opportunities, regardless of the company’s size.

Once they gain some work experience, they can apply for the company they originally wanted to join through mid-career recruitment.

Second: decide to postpone graduation

If they want to enter a corporation as the new graduate, they might decide to delay their graduation. In Japan, many companies don’t care for students for taking an extra year to graduate.

Some students may also choose to pursue graduate school to avoid a gap in their resume. They can try to find a job as a graduate student through new graduate positions.

Third:

They could graduate as planned and then re-enter the job market as a “second graduate”, a term used for individuals who graduated within the last three years.
While this option has some drawbacks compared to being a new graduate, some companies offer similar opportunities to second graduates.

Strategies Students Use

Some students anticipate the intensity of the job search process and being preparing well in advance.

Apply for internships

Many companies offer internships to undergraduate students, and these often last for a week or more.

While these internships may be unpaid, students pursue them for the advantage they offer when applying for new graduate positions with the same company.

Because internships are short-term, students often participate in multiple internships, particularly during summer vacation.

Recommendation slot

University students are often required to write a thesis on their major in their final year of college. They then choose a laboratory aligned with their major and interests.

However, some laboratories have connections with certain companies. Therefore, some students study diligently to join these laboratories, and they hope to ease their job search process.


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