Revealing the road to Japan's IT modernization: talent shortages, AI challenges, and the bright spot of upskilling
TOKYO — KubeCon + CloudNativeCon Japan — June 16, 2025 — The Linux Foundation, the nonprofit organization enabling mass innovation through open source, today released a new report titled "2025 State of Tech Talent Japan Report: Trends in Technical Hiring, AI Disruption, and the Skills Gap." A Japanese version “2025年 日本の技術系人材の現状レポート: 技術者採用の動向、AI によるディスラプション、スキルのギャップ“ was released simultaneously alongside the English edition.
Based on a recent Linux Foundation Research survey, this analysis explores the current state of the Japanese technical talent market and underscores upskilling as a strategic priority to address the shortage of skilled workers.
Please read the full report for a detailed analysis:
Authors:
Executive Summary
While organizations are rapidly modernizing their computing infrastructure with a projected 41% increase in cloud adoption, Japan notably lags behind other regions in both infrastructure modernization and technical staffing levels. The shortage of skilled professionals emerges as the dominant barrier to modernization in Japan, with more than 70% of organizations reporting being understaffed across key technological areas. This percentage is 52% higher in Japan than in other regions.
This challenge is particularly acute in AI-related capabilities, where even the most common AI skills are present in less than 40% of organizations, creating significant barriers to effective AI implementation and scaling. The scarcity of advanced AI capabilities suggests that many organizations are confined to standardized solutions, potentially missing opportunities for competitive differentiation.
Although there has been a widespread assumption that AI will reduce workforce demand once the skills are present, our research shows a consistently positive net hiring effect through 2026. The exception being a concerning decline in entry-level positions, which could disrupt traditional career development pathways.
In response to these challenges, organizations are increasingly turning to upskilling as their primary workforce development strategy, with 94% viewing upskilling as strategically important. Upskilling takes 124% less time than hiring and onboarding new employees. The success of technical growth initiatives (98% effectiveness) and training and certification opportunities (95% effectiveness) in employee retention further validates this strategic focus on internal talent development. As technology continues to evolve at an accelerating pace, organizations that can effectively develop and retain their existing talent while strategically incorporating new expertise will be best positioned to thrive in an increasingly complex technical scenario.
Key findings featured in the infographics
The report reveals a lag in cloud adoption and talent shortages in Japanese enterprises, as well as a rising awareness and anticipation regarding investments in AI and workforce upskilling.
For more details, please refer to the full report.
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Media Contact
Noriko Otake, the Linux Foundation
notake@linuxfoundation.org