The ratio divides active job openings by active job seekers at Hello Work. Active means a vacancy or registration still open, usually counted over two months. The headline figure is seasonally adjusted, excludes new graduates and includes part-time work. A ratio above 1 means more vacancies than seekers.
The Ministry of Health, Labour and Welfare reported a 2025 average of 1.22, down 0.03 points on 2024 and the second annual decline. Reporting on the figures attributed the fall to employers holding back on hiring as materials costs and minimum wages rose, with openings down across all industries. Unemployment was unchanged in 2025 at 2.5%. The monthly ratio stood at 1.19 in December 2025.
The limitation is in the name of the source. Only vacancies and job seekers registered with Hello Work are counted. Hiring through private agencies, job boards, direct recruiting and referrals, which is where most mid-career and almost all senior hiring happens, is outside it. The ratio also hides large gaps between occupations: clerical work has long had far fewer vacancies than applicants, while construction, care and security have far more.
What it means for a foreign employer
- It says little about senior hiring. A falling national ratio does not mean bilingual finance directors or HR heads are easier to find.
- Direction matters more than level. The ratio has been above 1.0 every year since 2013 and peaked above 1.6 in 2018 and 2019. A ratio easing from its peak still signals a tight market by international standards, with unemployment around 2.5%.
- Use it for frontline roles. For warehouse, retail, care or field roles, local and occupational ratios are a reasonable guide to wage pressure.
- Quote it carefully in business cases. Present it as a Hello Work measure, alongside data that reflects the market you actually hire in.
Sources
- Ministry of Health, Labour and Welfare, General Employment Placement Situation, 2025 annual and December 2025 results.
- Ministry of Internal Affairs and Communications, Labour Force Survey, 2025 annual average.
- Nikkei and TV Tokyo reporting on the 2025 results, January 2026.