Arya News - Labour shortages following a post-pandemic recovery in demand have led to improved working conditions for drivers, attracting young people to the profession.
TOKYO – While the aging of taxi drivers has long been a concern, now there are signs that the workforce is getting younger, mainly in major cities. Over the past year, the average age of tax drivers has dropped by more than three years, or by about five years in Osaka Prefecture and four years in Tokyo.
Labor shortages following a post-pandemic recovery in demand have led to improved working conditions for drivers, attracting young people to the profession. The spread of taxi-hailing apps has also made it easier for young people with little experience to earn a living.
On June 9, drivers gathered for a pre-shift roll call at the Imazato garage of OM Taxi Dai-ni in Higashinari Ward, Osaka. Yusuke Yoshimura, a 25-year-old who previously served in the Air Self-Defense Force, has been working as a driver for the taxi company since September. “I like both driving and serving customers,” he said, explaining why he had chosen the job.
His monthly income is about ¥350,000, or even ¥400,000 during peak seasons. Thanks to his increased earnings, he was able to buy a ring for his wife, whom he married in spring. He had no complaints about his work. “Few people my age can earn this much. I want to stay with the company for a long time,” he said.
As of June 1, taxi drivers in their 20s and 30s accounted for 30% of the 127 drivers at the company and its affiliate OM Taxi.
The Yomiuri Shimbun
According to the Health, Labor and Welfare Ministry, the average age of drivers at taxi companies nationwide peaked at 60.7 in a 2021 survey. The situation has long needed to be addressed, as there are concerns about accidents caused by aging drivers and shortages of drivers.
GRAPH: THE YOMIURI SHIMBUN
The COVID-19 pandemic proved the catalyst for change. Demand for taxis fell when the public was asked to stay home, and statistics from the Land, Infrastructure, Transport and Tourism Ministry show that the number of taxi drivers dropped by 20% from just before the outbreak. When the pandemic subsided, leading to renewed taxi demand and a resurgence in international tourism, the taxi industry faced a severe driver shortage.
The younger generation took notice. According to a 2025 survey, the average age of taxi drivers nationally dropped by 3.4 years from the previous year to 56.8 years, returning to levels last seen about 20 years ago. This trend toward younger drivers was particularly conspicuous in major metropolitan areas. For example, the average age fell by 4.9 years to 55.1 years in Osaka Prefecture and by 3.7 years to 53.6 years in Tokyo.
Young people were lured by the attractive income. Nationally, the average annual income for taxi drivers in 2025 is estimated to have been ¥4.5 million, up by about ¥1.5 million from 10 years ago. While that is about ¥900,000 less than the average for major industries, taxi drivers are paid by commission, reducing age-related income disparities. In fact, the average annual income for drivers in their early 20s is ¥1.2 million higher than the average for major industries.
Young drivers have also had an easier time getting their foot in the door thanks to taxi-hailing apps, since these allow even inexperienced drivers to pick up passengers efficiently.
In Tokyo, major taxi company Nihon Kotsu Co. is working to recruit new graduates from universities and other institutions. Between 2021 and 2023, the company increased the number of new graduate hires to around 300, and this past spring, it hired 127 new graduates as drivers. At some of the company’s branches, the only staff are new graduates, and the firm is working hard to create a comfortable working environment, such as by setting up cafe areas for socializing.
“Recruiting new graduates not only helps to address labor shortages, it also plays a major role in developing next-generation leaders,” the company’s public relations department said.
In rural areas, where taxi demand is lower, the average age of drivers continues to rise. According to a survey in 2025, the average age increased from the prior year to 69.3 in Oita Prefecture and 63.6 in Wakayama Prefecture.
“The challenge is whether taxi companies can maintain their current favorable working conditions. Can young drivers continue in this job as they get older and envision a future for themselves?” said Hajime Tozaki, a professor at J.F. Oberlin University and an expert on transportation policy. “Retention rates will need to be watched carefully.”