Japan's job seekers surge 133% q-o-q in 3Q16

Thanks to a growing number of mergers.

In Japan, Q3 job seeker numbers were up an astronomical 133%, quarter-on-quarter.

According to a research note from Morgan McKinley, Richie Holliday, Chief Operations Officer, Morgan McKinley Asia Pacific, says it is related to mergers.

“The last of financial service bonuses in Japan are given out in Q2, making a Q3 surge in candidates standard”, said Holliday. “The extreme surge we’re seeing is exacerbated by the high rate of mergers taking place which is causing professionals to worry about the job security”.

Here's more from Morgan McKinley:

Job flow in Japan remained steady, with a 3% quarter-on-quarter increase. Combined with a Q2 that saw a robust hike of 20% in jobs available, the two quarters indicate a summer uplift in financial services jobs in Japan.

The uplift waned in August as the summer lull heralded a period of more modest growth. With some of Japan’s largest asset management institutions, including Sumitomo Mitsui and JP Morgan Chase, announcing hiring freezes starting in September, figures are unlikely to spike again in the near future.

Q3 saw financial services institutions Mizuho, Shinko and Diam merge to create the largest asset management company in Asia, called Asset Management One Co. Big business mergers are followed by periods of assessment to determine which roles to retain, reallocate or eliminate. “When three institutions merge, you have key roles in triplicate, creating an effective hiring freeze in the short term”, said Holliday.