Triple the salary of large corporations... Japanese taxi industry offers 'Ddadabul' to 20s new hires

Labor Shortage Worsens Due to Low Birthrate, Aging Population, and COVID-19
Introduction of Flexible Work System for 2030 Generation

Facing severe labor shortages due to low birth rates and an aging population, Japan's taxi industry is desperately recruiting to meet the rapidly increasing tourism demand following COVID-19. By extensively introducing performance-based pay systems to hire new university graduates, high-income taxi drivers earning nearly three times the salary of large corporations have emerged.

On the 14th, Bloomberg reported that Japanese taxi companies are actively recruiting new employees in their 20s amid worsening labor shortages and have significantly raised wages by introducing performance-based pay systems. With the shift to a performance-based salary system, some drivers in their first year are earning 500,000 to 600,000 yen per month (4.5 to 5.4 million won), about two to three times the monthly salary of major corporations, making the job increasingly popular as a high-income occupation.

Traditionally, Japan's taxi industry was mostly staffed by middle-aged workers in their 50s. According to the Japan Taxi Association, the average age of taxi drivers in Tokyo is 58. Most drivers start in their 40s or 50s and work for about 10 years until retirement. Without the influx of younger new hires with many years before retirement, the labor shortage is structurally inevitable.

In response, Japanese taxi companies have begun offering many incentives to attract younger drivers. They introduced flexible working hours and performance-based pay systems. Such attempts have been noted as groundbreaking innovations in Japan's conservative corporate culture.

These efforts are gradually yielding results. Nihon Kotsu, Japan's largest taxi company, started recruiting new university graduates in 2012. Initially, they hired only six people, but now the number of drivers in their 20s has increased to over 1,000, accounting for 30% of the total workforce. At the Tokyo branch, the average driver age is 24.

Along with higher salaries, a substitute holiday system has been introduced. On days when overtime is worked, the following day is given as a day off, and since March, 6-hour shift work has been implemented. Bloomberg analyzed that young workers in their 20s and 30s are flocking to the job because they can receive substitute holidays after work and have time for self-development.

Foreign taxi driver recruitment advertisement by Hinomaru Kotsu. (Photo by Hinomaru Kotsu website)

With the increase in overseas tourism demand, the Japanese government is also preparing recruitment measures separately from companies. The Ministry of Land, Infrastructure, Transport and Tourism is promoting a plan to allow foreign workers to drive taxis. Currently, only foreigners with permanent residency can work in the transportation industry in Japan, but there are plans to add "automobile transportation business" to the list of eligible residency statuses.

Tokyo Hinomaru Kotsu has been hiring foreign workers with permanent residency for six years. More than 80 foreign drivers from 26 countries, including Korea, the United States, China, India, and Sri Lanka, are active.

However, for foreigners, the licensing exam required to drive taxis is a high barrier. While the written test for a standard Class 1 license can be taken in Japanese or English, the Class 2 license required for taxi driving can only be taken in Japanese.

Therefore, Hinomaru Kotsu is attracting foreign workers by supporting training and exam costs for obtaining the Class 2 license.

Japan's TBS stated, "To solve the labor shortage, measures such as adding English to the Class 2 license exam are necessary," and added, "Companies should also establish education and management systems for foreign workers."

This content was produced with the assistance of AI translation services.