With Japan’s working age population declining, retaining of new employees is a high-priority issue for companies. The term, “7-5-3,” has commonly been used to describe quick turnover of new graduates, meaning 70% of junior high school graduates, 50% of high school graduates and 30% of university graduates quit in three years. This article looks at the Labor Ministry’s report on the situation of workers who graduated in March 2022 and left their jobs in three years.
[1] High school and university graduates’ three-year turnover rates
The turnover rate of high school graduates fell 0.5 points from 38.4% to 37.9%, while that of university graduates declined 1.1 points from 34.9% to 33.8%. Although the rates have slightly decreased, the data indicate that one out of three new workers have left their jobs within three years. The table below shows rates by company sizes.
Table: Turnover rate by company size
|
Company size (number of employees) |
High school graduates |
University graduates |
|
Less than 5 |
63.2% (+0.7 points) |
57.5% (-1.6 points) |
|
From 5 to 29 |
54.6% (+0.2 points) |
52.0% (-0.7 points) |
|
From 30 to 99 |
45.2% (-0.1 points) |
41.9% (-0.5 points) |
|
From 100 to 499 |
36.7% (-0.4 points) |
33.9% (-1.3 points) |
|
From 500 to 999 |
29.9% (-1.6 points) |
31.5% (-1.4 points) |
|
1,000 or more |
26.3% (-1.0 points) |
27.0% (-1.2 points) |
[2] Turnover rates by business category
By business category, high school graduates’ turnover rate was the highest in eating and drinking services (64.7%), followed by living-related and personal services (61.5%), education and learning support services (53.6%), medical, health care and welfare services (49.2%) and retail trade (48.3%). As for university graduates, the rate for eating and drinking services was the highest (55.4%), followed by living-related and personal services (54.7%), education and learning support services (44.2%), medical, health care and welfare services (40.8%) and retail trade (40.4%).
The results may be attributable to tendencies and factors specific to individual industries, but it is important for companies to understand their turnover rates, analyze causes and implement measures to eliminate issues, if any. Firms hiring mid-career workers should also make efforts to prevent quick turnover.
[Reference]
The Labor Ministry, “Data regarding new graduates’ turnover”
https://www.mhlw.go.jp/stf/houdou/0000177553_00010.html
*The information is based on laws and regulations as of the date of the original article.
