Japan is actively working to change its work culture to provide better working conditions for employees. The goal is to help individuals balance their personal and family lives, which may in turn improve birth rates. A recent survey revealed that over half of Tokyo’s employees have adopted a hybrid work model, with remote work ranging from one to four days a week.
Reduced on-site work. The employment landscape in Tokyo is undergoing significant changes in the aftermath of the pandemic. According to a survey conducted by the Nomura Research Institute (NRI) involving 3,091 individuals between the ages of 20 to 69, 73.8% of employees now go to the office three or more days a week. In contrast, the number of people working from the office every day has decreased compared to pre-pandemic levels.
Data from 2020 indicated that 82.8% of employees at large corporations in Tokyo went to the office every day. By July 2024, this figure had dropped to 47.4%, with forecasts suggesting it’ll decrease further to 43.2% this year.
The rise of hybrid working. The new scenario points to an increased prevalence of the hybrid work model, with employees spending between one and four days in the office. This highlights greater flexibility in the working arrangements.
The proportion of workers attending the office three or four days per week increased from 22% in 2023 to 26.5% in 2024. This trend explains the decline in the number of employees working in the office daily. Notably, the most significant growth has been among those who go to the office one or two days a week, with this figure rising from a mere 3.3% in 2020 to 11.4% in 2024.
A chart showing the frequency of office attendance between 2020 and 2024. | Image: NRI
Remote work is becoming increasingly common. Working remotely means visiting the office less than once a week. After fluctuations between 2022 and 2023, this work model has established itself as the preferred choice for 14.8% of employees in large corporations based in Tokyo. In 2020, the percentage was only 7.5%.
Interestingly, remote work in the U.S. has stabilized, according to recent data from the Bureau of Labor Statistics survey. In 2022, 34% of employed individuals worked from home, and that number rose slightly to 35% in 2023, marking an increase of just 1%. In 2019, before the pandemic, the percentage of people working from home was 24%.
The goal: retaining young talent. According to the NRI report, the recent shift in work models in Japan not only aligns with the preferences of younger workers but also serves as a strategic move by businesses to attract and retain young talent.
The NRI survey highlights that hybrid work models are gaining traction even in traditionally conservative industries. Flexible working arrangements enable employees to avoid long commutes, which is a significant improvement in a city like Tokyo, where the average daily commute exceeds 60 minutes.
Companies seek increased productivity. Long working hours are well-known for negatively impacting productivity. For instance, Toyota attributes some manufacturing failures to excessive working hours and is considering implementing a four-day workweek for its employees.
Global data on various trials for reducing working hours indicates that shorter workweeks can lead to increased productivity, improved employee well-being, and enhanced consumer spending. The rising rates of mental illness among Japanese workers and concerns about competitiveness have compelled the Japanese government to explore new models aimed at reducing the lengthy working hours typical in its workforce.
Image | charlesdeluvio
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