Modern Labor Conditions in Japan and a Turning Point in Career Development: Insights from Resignation Agency Services and Restructuring While Profitable

While the Japanese economy is currently seeing growing momentum for wage increases amid historically high inflation, workers’ attitudes and their relationships with companies are undergoing a major transformation.
As labor shortages intensify, a “job seeker’s market” has taken hold, and the barriers to changing jobs in search of better conditions and environments have dropped dramatically.
Against this backdrop of increasing labor mobility, two contrasting keywords—“resignation agency services” and “profit-driven layoffs”—have emerged as a microcosm of the modern labor market.
We explore the current situation—where the traditional value of “loyalty to the company,” once based on the premise of lifetime employment, is wavering, and the question of how individuals and companies should relate to one another is being raised—from multiple perspectives.

The Background of Resignation Agency Services Gaining Traction Among Young People and Distortions in the Workplace Environment

Currently, there is a rapid increase in the use of “resignation agency services,” where employees convey their intention to resign through a third party rather than directly.
A notable aspect of this phenomenon is the fact that young people in their 20s and 30s account for approximately 50% of users.
At first glance, this might be interpreted as a psychological tendency among young people to avoid face-to-face communication, but underlying this lies a more structural issue within the workplace.
The response “fear of superiors,” which accounts for about 40% of the reasons for using these services, indicates that healthy hierarchical relationships have broken down in today’s workplace.

In fact, data shows that approximately 40% of service users have experienced harassment from their supervisors, and it appears that in many cases, they are driven into a situation where they are unable to negotiate their resignation on their own due to mental distress or physical ailments.
While companies are often perplexed by resignation notices that arrive suddenly and express dissatisfaction with the resulting disruption on the ground, this situation also serves as evidence that psychological safety was lacking to the extent that employees could not voice their true feelings in day-to-day communication.
The rise of resignation agency services can be seen as a scathing critique of the reality that corporate management systems and organizational cultures have failed to keep pace with modern values, rather than merely reflecting issues with individual character.

The Expansion of “Profitable Layoffs” and the Need for Career Autonomy Among Mid-Career and Senior Employees

Meanwhile, the nature of company-initiated resignations is also undergoing a transformation.
In the past, voluntary retirement programs and layoffs were implemented as a last resort for companies facing declining performance to ensure their survival.

However, despite strong business performance, “profit-driven restructuring”—aimed at rejuvenating the workforce and optimizing personnel composition to maintain future competitiveness—has become the norm, particularly among major corporations.
This trend is hitting middle-aged and older employees particularly hard; even those who have contributed to the company for many years are increasingly being targeted for restructuring due to skill mismatches and high labor costs.
As indicated by a survey from the Ministry of Internal Affairs and Communications, the number of job seekers aged 35 and older is on the rise, particularly at large companies with 500 or more employees.
This trend is not solely driven by the unilateral interests of companies; it also reflects the fact that workers, anticipating the “100-year life era,” have begun to recognize the risks of clinging to a single company until retirement.
For companies, “profit-driven restructuring” is a forward-looking, “proactive management decision,” but for employees, it presents a harsh reality: the company is not an entity that will guarantee their livelihood until the very end.

As a result, we have entered an era where all workers—regardless of age—are expected to be mindful of their market value and take a proactive approach to building their own careers.

The Risks of Labor Mobility for Companies and the Redefinition of Organizational Management

While labor mobility expands the range of choices available to individuals, it also presents new risks for corporate management.
Even if a company aims to rejuvenate its workforce through cost-cutting measures while remaining profitable, it cannot avoid the risk of losing talented employees—including those possessing tacit knowledge and advanced skills—who have accumulated within the organization over time.

Furthermore, implementing layoffs instills a strong sense of anxiety among remaining employees—the fear that “I might be next”—which significantly reduces their engagement with and sense of belonging to the organization.

Moreover, a workplace environment where employees frequently use resignation agencies or where the company takes a hardline stance on personnel reductions spreads instantly to the outside world via social media and review sites, leading to serious damage to the company’s brand image in the recruitment market.
Amid an accelerating labor shortage, losing competitive edge in recruitment is a critical issue that threatens a company’s very survival.
Companies are being forced to navigate highly sophisticated organizational management—not merely adjusting the numerical size of their workforce, but ensuring psychological safety so that employees feel they “want to continue working for this organization,” and rebuilding relationships where individuals and the organization act as equal partners, contributing to each other’s growth.

The Correlation Between Future Work Styles and Well-being, as Seen Through Diversifying Reasons for Resignation

When we take a broad view of today’s diversifying reasons for resignation, we can discern questions that go beyond the framework of “work styles” and touch upon people’s very “lifestyles.”
Behind the need for extreme measures like retirement agency services lie persistent negative aspects such as harassment and excessive overtime, while the expansion of profit-driven layoffs signifies a rupture marking the end of the traditional Japanese employment model.

However, we should not view these developments as merely pessimistic phenomena.
This is because they can all be interpreted as friction arising from the process by which individuals—no longer viewing themselves as the property of an organization—seek to reclaim sovereignty over their own lives.
For people, resigning or changing jobs has evolved beyond a mere physical act of moving from one workplace to another; it has become a crucial “means” for maximizing personal happiness and leading a fulfilling life.

What is important is not to make change an end in itself, but to maintain a fundamental

perspective on what value one wishes to provide to society through work and what form of self-actualization one seeks to achieve.
Individuals should continue to hone skills that are universally applicable, without relying on a single company, while companies should create attractive environments to ensure they continue to be chosen by individuals.
It is precisely this healthy tension between those who choose and those who are chosen that will serve as the driving force to transform Japan’s future labor market into one that is more transparent and dynamic.

Summary

The current trends of “resignation agencies” and “profit-driven layoffs” outlined in this report symbolize a dramatic shift in employment practices in Japan.
The growing use of resignation agencies among younger workers highlights a lack of psychological safety and a breakdown in communication in the workplace, while profit-driven layoffs targeting middle-aged and older employees strongly underscore the need to break free from dependence on companies and achieve career autonomy.
Unless companies shift from managing talent as mere costs or resources to operating organizations centered on respect for the individual and improved engagement, it will become difficult to retain top talent.

On the other hand, for individual workers, as resigning or changing jobs has become a common “option for improving one’s life,” an environment is taking shape where they can pursue happiness on their own terms.

However, this freedom comes with the responsibility of safeguarding one’s own career.
To continue working happily, it is essential to embrace change, maintain an objective view of one’s market value, and consistently make proactive choices that enhance the quality of life.
These shifts in the landscape of resignation are providing each of us with an opportunity to reexamine the “true meaning of work.”