Japan ranked 41st out of 63 economies in 2022 in attracting and retaining talent, down two spots from a year earlier and the fourth straight year of decline, according to a survey by a Swiss institute.
Switzerland topped the list, followed by Sweden, Iceland, Norway and Denmark. Of Indo-Pacific economies, Singapore was 12th, Hong Kong 14th, the United States 16th, Australia 18th, China 40th, Thailand 45th and Indonesia 51st.
In a breakdown, Japan ranked 63rd, or the lowest, for the international experience of senior managers and 62nd for language skills, the International Institute for Management Development said in the World Talent Ranking report released in December.
In contrast, the world's third-largest economy came fifth for education levels of 15-year-olds and eighth for management remuneration.
In comparison, Singapore ranked fifth for the international experience of senior managers and 10th for language skills.
The city-state placed third for the percentage of graduates in the sciences and fifth for business environment appeal to highly skilled foreign personnel.
The annual ranking evaluates the capacity of an economy to develop the skills and competency of its domestic talent and to appeal to the international talent pool to satisfy the local market's employment demand and enhance its overall competitiveness.
The Lausanne-based IMD said that during the COVID-19 pandemic, travel restrictions and lockdowns forced skilled employees to remain in their domestic markets, leading to a decline in talent mobility.
But it remains to be seen how long such a trend will continue, given that companies expect employees to return to the workplace rather than continue working remotely as the world enters the post-pandemic period.
In a separate survey, Japan ranked 27th out of the 38 Organization for Economic Cooperation Development members in terms of labor productivity in 2021, down one spot from the previous year and marking its lowest-ever ranking, according to a Tokyo-based group.
Measured by the worth of goods or services a worker can produce per hour, labor productivity totaled $49.9 in Japan, compared with $139.2 in top-ranked Ireland, the Japan Productivity Center said in a report released in December.
Luxembourg came second with $119.2, Norway third with $106.2 and the United States seventh with $85.0. South Korea ranked 30th with $46.9.
