On October 24th, the Nikkei Shimbun reported that Nishimatsu Construction will raise starting salaries for university graduates by 13% in April 2025, bringing monthly pay to ¥300,000 - a ¥35,000 increase from the previous year.
Nishimatsu Construction Rep. Director and President Masakazu Hosokawa, courtesy of the company website.
This marks the third consecutive year of salary hikes, as the company aims to tackle an intensifying labor shortage, partly driven by new overtime restrictions introduced in April 2024, locally known as the “2024 problem”.
The new regulations, which cap overtime hours, have exacerbated staffing challenges across the construction sector.
In response, Nishimatsu has committed to raising wages in 2025 by over 10%, incorporating both permanent base pay increases and discretionary bonus payments, to attract and retain talent.
Recruitment Shortfall and Industry Competition
Nishimatsu faced a recruitment shortfall in April 2024, hiring only 100 employees - 20% below its target.
The shortage of site supervisors, crucial for managing construction projects, is particularly acute.
Nishimatsu has resumed hiring high school graduates for the first time in nearly 20 years.
While the company has ramped up mid-career hiring and is utilizing temporary technical staff, the labor situation remains "under significant pressure," according to a company representative.
Major competitors like Kajima and Obayashi set their starting salaries at ¥280,000 for April 2024 hires.
In response, Nishimatsu increased its 2025 salary raise by ¥35,000 to equal competitor Haseko Corporation, which also offers a ¥300,000 starting salary. "We are working to maintain competitive salary levels to avoid losing talent to industry rivals," the company stated.
Nishimatsu is implementing wage hikes for the third year in a row, affecting around 2,500 employees, including those rehired after retirement.
Expanding Operations and Renewed Hiring Strategies
Beyond construction, Nishimatsu is expanding its operations into real estate development and renewable energy.
The company plans to hire approximately 120 employees for April 2025 and aims to further increase that number in 2026.
To remain competitive in the fight for talent, especially against regional construction companies, Nishimatsu has resumed hiring high school graduates for the first time in nearly 20 years.
In addition, Nishimatsu is partnering with Descente, a subsidiary of Itochu Corporation, to revamp its employee uniforms for the first time in nine years to increase comfort on the job.
The new uniforms will be introduced gradually from November 2024.
Source:
Nikkei Shimbun (Japanese only; paywalled)
