The Rise of Freelancing and Outsourcing in Japan’s Evolving Workforce

A Shift in the Japanese Workforce

The advent of the internet has revolutionized work practices, leading to a significant transformation in Japan’s traditionally loyalty-focused employment culture. By 2021, the number of freelancers engaged in side jobs in Japan had surged to 15.77 million, a 70% increase from 2015, accounting for 20% of the workforce. This dramatic rise can be attributed to several factors, including the widespread adoption of remote work due to the COVID-19 pandemic and shifts in industrial structures driven by digitalization.

Drivers of the Freelance Boom

As industries evolve, so do the knowledge and skills required by businesses. Companies increasingly collaborate with external experts to enhance competitiveness, a trend that has facilitated the acceptance of freelancing and outsourcing in Japan. Additionally, Japan’s aging population has prompted businesses to engage retirees as freelancers, particularly for training younger employees. This strategy has become crucial as job-hopping among younger workers becomes more common, necessitating the involvement of experienced retirees in mentoring roles.