Ehime Prefecture is grappling with significant labor shortages as the reliance on public job placement services diminishes, with many job seekers turning to online platforms. This shift has led to alarming declines in new job applications at Hello Work, the public job placement service, which has reported a notable drop of 17.8 percent over the past seven years.
According to data, new job application numbers plummeted from 64,109 in 2016 to just 52,697 by the fiscal year 2023. Despite this drop, the number of job openings has not decreased significantly, indicating the service’s struggle to meet its mission to connect local businesses with job seekers.
Tatsuya Shibakawa, the Head of the Labor Bureau's Employment Department, expressed deep concern about this trend. "If local businesses can hire through various private services, that's fine, but they aren’t able to do so," he stated. This reflects the persistent issue of labor shortages within the region, as the effective job-to-seeker ratio has consistently exceeded 1.30 since November 2021, highlighting the chronic lack of available workers.
The COVID-19 pandemic has accelerated the move toward online job hunting and information gathering. Many individuals seeking employment can now easily find opportunities without relying on traditional public services such as Hello Work. Shibakawa acknowledges this change, stating, "It’s good for job seekers to have diverse job-search methods outside of Hello Work." Nevertheless, he warns this new trend can skew job seekers' interests predominately toward renowned large corporations or BtoC (business to consumer) companies—often at the expense of local small and medium enterprises.
"When job seekers gravitate toward well-known companies, they lose out on matching opportunities with diverse workplaces, including local SMEs," Shibakawa added reflecting his concern for job seekers who may miss out on fulfilling and less-known career paths.
The challenge of matching potential employees with employers persists, emphasizing the need for adaptation amid changing job markets. With job openings remaining high but applicants showing declining interest through traditional means, Ehime Prefecture stands at a crossroads. To address the labor shortages effectively, both job seekers and local businesses may need to reassess their approaches to connecting and finding suitable employment opportunities.
The trend indicates not just changing preferences among job seekers but also poses significant challenges for local economies. Small and medium enterprises, which are backbone components of the local job market, face hurdles as they struggle to attract talent. Without the effective collaboration of job seekers utilizing all available resources—including public job services—economic growth may slow, impacting the region adversely.
Experts warn this discrepancy could perpetuate long-term structural issues within the local economy, emphasizing the urgency for initiatives aimed at revitalizing public services and enhancing job seeker awareness about the benefits of using them.
Ehime Prefecture's case serves as a clear illustration of the post-pandemic job market dynamics. Local economic stakeholders might have to innovate to bridge the gap, ensuring job seekers do not overlook the smaller, yet rich, opportunities existing within the prefecture.