Akita (and others) Tops Tokyo in Average Salaries for New Graduates
The Ministry of Health, Labour and Welfare has released its "2020 Basic Survey on Wage Structure", shedding light on the current state of salaries for employees in Japan. The data reveals significant differences in average salaries for new university and graduate school graduates across industries and prefectures.
Key takeaways:
New university graduates earn an average monthly salary of 237,300 yen, while graduate school graduates earn 276,000 yen.
The highest-paying industry for new graduates is "Mining, quarrying, and gravel extraction" at 288,200 yen, while the lowest is "services (other)" at 219,900 yen.
Akita Prefecture, not Tokyo tops the list for average salaries of new graduates at 267,700 yen, while Tottori Prefecture ranks lowest at 202,400 yen.
Industry breakdown
The survey data shows that even in the first year of employment, there are already notable salary differences across industries:
Mining, quarrying, and gravel extraction: 288,200 yen
Information and communications: 244,400 yen
Transport and postal activities: 248,400 yen
Medical, health care and welfare: 251,400 yen
Services (other): 219,900 yen
However, these initial salary levels may not be indicative of future earning potential. Industries such as "electricity, gas, heat supply and water" and "scientific research, professional and technical services" boast higher average salaries when considering all age groups.
Prefecture ranking
Akita Prefecture surprisingly climbed from 45th place in the previous year to claim the top spot for average salaries of new graduates in 2023. A closer look reveals that the "Medical, health care and welfare" industry in Akita Prefecture has a higher than average salary of 335,700 yen, likely contributing to the prefecture's overall ranking.
The top 5 and bottom 5 prefectures for average salaries of new university graduates are:
Top 5:
1. Akita Prefecture: 267,700 yen
2. Yamaguchi Prefecture: 258,000 yen
3. Shizuoka Prefecture: 249,800 yen
4. Saga Prefecture: 246,000 yen
5. Saitama Prefecture: 244,900 yen
Bottom 5:
47. Tottori Prefecture: 202,400 yen
46. Gifu Prefecture: 207,000 yen
45. Nagasaki Prefecture: 208,100 yen
44. Tokushima Prefecture: 209,500 yen
43. Kochi Prefecture: 211,100 yen
Buck the trends
While factors such as job fulfillment and work-life balance are important considerations, a survey conducted by Disco Inc. reveals that 43% of new employees in fiscal year 2023 are already contemplating changing jobs, with "increasing income" being the primary reason for 36.5% of respondents. This finding is not surprising, as for decades, graduates have been drawn to the greater Tokyo area and nearby prefectures like Chiba, where higher-paying jobs are more readily available.
However, the recent data showing that other prefectures are starting to offer competitive average wages could potentially align with the national government's goals of encouraging young people to settle anywhere else but Tokyo. This trend may help to address the long-standing issue of population concentration in urban areas and the consequent decline of rural communities.
As prefectures outside of the Tokyo area begin to offer more attractive salaries, it may become increasingly feasible for young professionals to consider building their careers and lives in these regions. This shift could be further supported by the growing number of cities and towns throughout Japan that have been developing and implementing their own local family policies to support young families.