Growing Skill Demand Drives Expansion of Contract Workforce in Japan

The latest report 'The Evolution of Contract Workforce in Asia,' released by recruitment firm Hays Specialist Recruitment Japan, reveals that the use of contract workers in Japan is accelerating. Companies are seeking more flexible talent solutions to address skill shortages, manage costs, and improve business outcomes.

The report analyzes responses from 1,930 contract workers and hiring managers across Asia, along with data from the '2026 Hays Asia Salary Guide,' providing a comprehensive overview of how contract workforce utilization contributes to addressing skill gaps and shaping talent strategies.

## Contract Workforce Utilization Expected to Grow Further

In Japan, the use of contract workers is steadily expanding, with 47% of companies considering hiring contract staff. This reflects a growing need to access specialized talent more quickly and flexibly.

Additionally, 39% of companies have increased their use of contract workers over the past 12 months, and this trend is expected to continue. In the next 12 months, 43% of companies plan to expand their use of contract workers.

Multiple factors underlie this growing demand:
- Reason for use: 50% of companies say it is difficult to secure talent for full-time hires
- Purpose: 48% cite improved flexibility in labor costs
- Motivation: 44% aim to secure specialized skills for one-off projects

## Competition for Contract Talent Intensifies

As the use of contract workers grows, competition for top talent is intensifying. In Japan, 69% of companies identify 'difficulty securing suitable talent' as their biggest challenge.

In highly specialized fields, demand for experienced professionals exceeds supply, requiring companies to adopt faster recruitment processes and differentiated approaches.

## Benefits Emerge as a Key Differentiator

Amid rising competition, expectations among contract workers are also evolving. Contract workers in Japan place high value on benefits such as health insurance, paid leave, and retirement plans, which are becoming critical factors in enhancing employer appeal.

However, only 39% of contract workers receive non-monetary benefits, indicating significant room for companies to differentiate themselves through value propositions beyond compensation.

## Comment from Grant Torrens, Managing Director, Hays Japan:

'In Japan, contract workers have become an important option due to the difficulty of hiring full-time employees. However, as demand for contract talent grows, competition among companies is intensifying. The competition for limited specialized talent is making it increasingly difficult to secure the right people.

In the future, companies will increasingly rely on contract workers to bridge skill gaps. In this context, businesses must strategically design contract terms and positioning. In particular, benefits will be a crucial differentiator when attracting experienced professionals.'

Download the report 'The Evolution of Contract Workforce in Asia' here.

## Survey Overview

- Survey Period: April 16–30, 2026
- Method: Online survey
- Conducted by: In-house survey
- Valid Responses (Sample Size): 1,930 responses

## About Hays

Hays (Headquarters: UK) is a specialist recruitment firm providing global talent services. As of December 31, 2025, it operates 198 offices across 30 countries and regions (with approximately 9,100 total employees), delivering high-skill talent services in 20 specialized fields.

## About Hays Specialist Recruitment Japan Co., Ltd. (Hays Japan)

Established in Tokyo in 2001 as Hays' Japanese subsidiary, Hays Japan is a talent consulting firm with three domestic offices (Tokyo headquarters, Osaka branch, Yokohama branch). Experienced consultants specializing in 13 fields—Finance & Accounting, Financial Services, Manufacturing, HR, Insurance, Legal, Life Sciences, Marketing & Digital, Office, Real Estate, Sales, Supply Chain, and IT—deliver four core services: 'Permanent Placement,' 'Contract & Temporary Staffing,' 'Recruitment Process Outsourcing (RPO),' and 'IT Solutions (Project Outsourcing).' The company supports corporate hiring and individual career advancement. https://www.hays.co.jp/