Forecasting the job market

As of today, there are many hiring demands within Fixed Income Divisions in investment banks compared to other areas. Especially Japan's three major banks who plan to take on at least 770 midcareer hires in fiscal 2023, 4.5 times the fiscal 2021 figure, as they hunt for professionals who can contribute immediately to areas like digital services. Also, they announced that under their plans, midcareer professionals will be nearly 40% of all hires made in fiscal 2023 -- up from 7% in fiscal 2019. Unfortunately, many departments in foreign banks are quite conservative and continue to observe the markets movement before they increase talent. However, we are very optimistic and expect to see a lot of new openings this year.

The job market in Japan is witnessing a significant surge in demand for tech roles across various sectors, with domestic banks leading the way in hiring. These banks are actively strengthening their teams and seeking professionals with specialized skills in areas such as project management, business analytics, and software development. The focus on hiring professionals with strong relevant skills highlights the importance of these roles in driving innovation and growth within the investment banking industry. Additionally, niche areas like quantitative finance and data science are gaining prominence, presenting new and exciting opportunities for job seekers in these specialized fields. As the year progresses, we anticipate a further increase in job opportunities within the tech space, as companies continue to prioritize digital transformation and technological advancements. This creates a favourable environment for professionals to explore new career prospects and contribute to the evolving landscape of the Japanese job market.

As for asset management despite fewer hirings this year than last year we do expect the second half of 2023 to be stronger as continued demand for fixed income and alternative asset class roles remains robust. In addition, new and early stage fund entrants to Japan will be looking to increase headcount. Also, it will be interesting to see what effect the current Japanese equity bull market has on hiring demand for equity related roles throughout the rest of the year, particularly with regards to sales, analysts and PM roles.