Last week, survey results revealed that Japan’s labor shortage remains a pressing issue, with 51% of companies expressing concerns about inadequate staffing levels. This shortage has been identified as a significant factor that could negatively impact business performance, leading to the closure of 313 companies in the fiscal year of 2023.
According to data from Teikoku Databank, over 27,000 companies surveyed in April highlighted labor shortages, particularly prominent in the information technology engineering sector. More than 70% of companies in this industry reported insufficient workforce, impacting project execution, despite the ongoing AI technology boom.
The hospitality sector, including inns and hotels, also faces labor challenges due to surging demand from inbound tourists post-COVID-19 restrictions. The food and beverage sector, particularly reliant on part-time workers, has been significantly affected, with nearly 75% of companies reporting staffing shortages.
However, compared to the previous year’s survey, the food and hotel industry has shown improvement, witnessing a 40% increase in part-time workers. There are optimistic signs of a gradual easing of labor constraints, with a marginal decline in the number of companies reporting worker shortages in these sectors.
Teikoku Databank suggests that if this trend continues, Japan could potentially reverse the labor shortage trend in the coming years. Nevertheless, the percentage of companies experiencing a shortage of full-time employees remains high, nearing the record levels observed in November 2018.
