Already in 2024, Japan’s legal job market has seen significant activity, reflecting broader economic trends and industry demands. As the economy rebounds from the COVID-19 pandemic, several key factors are shaping the landscape for legal professionals. Here, we delve into the current trends and what they mean for job seekers and employers alike.

A Bustling Legal Job Market

The in-house legal job market in Japan is busy. Companies across various sectors are in search of in-house legal counsel to navigate the growth of their businesses. This is particularly noticeable across manufacturing & hi-tech, healthcare & health-tech, finance & investments, and energy.

These industries are know the importance of strong legal support to manage regulatory compliance, intellectual property, mergers and acquisitions, and other critical legal functions.

Rising Salaries

Salaries for in-house counsel continues to increase compared to the pre-COVID era. Although the rise has not been drastic (yet), it is steady and significant enough to impact hiring trends. A growing number of companies are showing a willingness to offer higher pay for key legal hires, acknowledging the value of experienced legal talent. This willingness to invest in top-tier professionals highlights the competitive nature of the market.

Candidate-Short Market

Despite the active job market, there remains a shortage of qualified candidates; i.e. commercially minded, bilingual in-house counsel. This scarcity continues to drives up demand, giving job seekers an often strong negotiating position. Employers are finding it challenging to fill positions with the right talent, leading to longer recruitment processes and increased competition among companies.

Emphasis on Cultural Fit

In this candidate-short market, companies are placing a higher priority on finding the right cultural and personality fit. Technical skills and experience remain crucial, but organizations are increasingly looking for candidates who align with their values and can integrate seamlessly into their corporate culture. This shift underscores the importance of soft skills and the ability to work collaboratively within teams.

In Summary

The in-house legal job market in Japan continues to be dynamic and evolving. With rising salaries, high demand for in-house legal counsel, and a focus on cultural fit, both employers and job seekers must adapt to these trends. For companies, offering competitive compensation and emphasizing corporate culture are key strategies to attract and retain top talent. For job seekers, highlighting both hands-on transactional or technical experience, and alignment with company values can enhance job prospects in this bustling market.