It remains predominantly an employees’ market. On top of that, it’s hard to predict whether the people who get hired will settle in and do well. Companies know about former employees’ performance and

Back when it was an employers' market, Japanese companies CUT workers wages year after year, creating the problems we have today.

The cheapness of Japanese companies is definitely part of the problem. It does make sense though, if someone knows the inner workings of a company, versus someone that doesn't.

At my current company I have seen people come in from other companies, struggle to pick up the systems we use and then leave as they haven't been able to adjust. Employing someone who has been in the system previously makes sense.