Morgan McKinley | Japan

Hiring Market Update - May 2009

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Research Highlights:
Majority of Tokyo’s employers believe the jobs market will start to recover
before the end of 2010
As part of our ongoing commitment to keep candidates and
clients up to date with the latest trends in the recruitment sector,
Morgan McKinley recently conducted research into hiring trends
for 2009 and beyond.
We surveyed 160 senior level HR and hiring managers across
financial services and commerce & industry organisations in
Tokyo to find out when they believe the local jobs market may
start to recover.
In this Morgan McKinley Tokyo Hiring Market Update you will
find the aggregated results of that research.
Kirstin Duffy
Managing Director
P: +813 5403 7073
E: kduffy@morganmckinley.co.jp
Key findings
• Two out of three (68%) employers said professional
recruitment within the financial services and commerce &
industry sectors will start to increase before the end of 2010
• Of those, 23% believed it would happen it 2009 while 45%
said it would start to pick up during 2010
• During 2009, 71% of hiring managers said they expected
their firm’s recruitment activity to at least remain at current
levels (51%) or in fact increase (20%)
• Despite increased competition in the market for fewer roles,
almost three out of every four (73%) employers expected
salaries to remain steady in 2009
• This is likely to be because the majority (60%) of employers
said it is just as difficult (44%) if not more difficult (16%) to
source the right candidate compared to a year ago.
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Survey Results:
This is what Tokyo’s employers told us

Despite the challenging conditions facing the jobs market in Tokyo
at present, over two thirds of employers believe there will be an
increase in demand for finance professionals within the next 18
months, according to research by global professional recruiters,
Morgan McKinley.
Morgan McKinley surveyed 160 senior level HR and hiring
managers within financial services and commercial organisations
in Tokyo and found that the majority (68%) believed recruitment
will start to increase from the current suppressed levels before the
end of 2010.
Almost one in four (23%) employers suggested there would be an
uplift in hiring activity before the end of this year however, 45% did
not expect it to happen until 2010.
Generally, employers were positive when it came to their own
staffing plans for the remainder of the year. 71% of hiring managers
expected their firm’s recruitment activity to at least remain at
current levels (51%) or in fact increase (20%) in 2009. These
results were very similar to those found in Singapore and Hong
Kong, where comparable surveys were run.

When do you think hiring levels might start to rise steadily again within
Breakdown of respondents by sector your sector?

45%

45%
25% 40%
35%
30%
23%
21%
25%

20%
15% 9%
75%
10%
2%
5%
Financial Services Commerce & Industry 0%
2009 2010 2011 2012 Don't know

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Kirstin Duffy, Managing Director of Morgan McKinley Tokyo pharmaceuticals, demand for these professionals has remained
comments: relatively steady.

“This research has produced some interesting results, not least
that the majority of hiring decision-makers have predicted an uplift
in recruitment activity next year.
This sentiment is good news for jobseekers although, any
increase is likely to be a steady rise over several months rather
than an overnight surge in hiring activity.
“It is worth remembering that finance roles are often viewed as
business critical, particularly in the current climate where
businesses are focused on cost-efficiency and so within certain
commerce and industry sectors, such as healthcare and
Within financial services, many of the bulge bracket banks, which
have been conservative with regards to hiring over the past few
months have trimmed their hiring down to focus on business
critical roles and, in the short-term, are looking at replacement
rather than expansion recruitment.”
When it came to compensation, the survey found that despite the
increased competition in the market for fewer roles, basic salaries
are likely to hold firm. The research revealed that almost three out
of every four (73%) employers expected basic salaries offered to
new hires within their business to remain the same in 2009.

Over the next 12 months, do you expect hiring levels within your Over the next 12 months, do you expect basic salary offerings for
business to increase, decrease or stay the same? new hires within your business to increase, decrease or stay the
same?
5%
22%
20%
Increase

51%
Stay the sam e

29%
Decrease
73%

0% 10% 20% 30% 40% 50% 60%

Increase Stay the same Decrease

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Salaries may stay at current levels because the majority (60%) of
employers said it was just as difficult (44%) if not more difficult
(16%) to source the right candidate to suit the position they were
hiring for than it was a year ago.
Kirstin Duffy, Managing Director of Morgan McKinley Tokyo
comments:
“Despite there being more candidates available in the Tokyo
market, there is still a shortage of individuals with certain skill sets
that are currently in demand. For employers, finding the right
talent, even in a candidate-rich market, is difficult.”
This is one of the many reasons why, MORGAN McKINLEY has
launched an exciting new identity which reinforces the business’
Compared with a year ago, how difficult is it to source the right
talent when hiring at the moment?
16%
40%
44%
More difficult Just as difficult Easier
mission to provide employers and those looking for a new role
with access to a broader range of talent and opportunities across
multiple sectors, disciplines and geographies.
Kirstin Duffy, Managing Director of Morgan McKinley Tokyo
comments:
“Morgan McKinley aims to be the best professional recruitment
company, globally, by providing our clients and candidates access
to the best talent and opportunities via our sector, functional and
geographically aligned specialist consultants. Likewise, our new
visual identity reflects Morgan McKinley’s values as innovators,
ambitious and specialists in the areas we operate in. We look
forward to creating an excitement in the market with our new
branding.”
About Morgan McKinley
Morgan McKinley is a global professional recruitment
consultancy connecting specialist talent with leading employers
across multiple industries and disciplines.
With 24 offices across the UK, Europe, the Middle East and
Asia-Pacific, its professional recruitment expertise spans across
Banking & Financial Services, Commerce & Industry, Public
Practice, Public Sector & Not For Profit and Taxation. Morgan
McKinley is a preferred supplier to many of the major employers
in its specialist sectors, as well as thousands of smaller local
employers.
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Tokyo, 105-0001

Tel: +813 5403 7073

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