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Over half of Japan companies suffering from labor shortage: survey

Over half of companies in Japan are suffering from a shortage of full-time employees as the country’s labor crunch, caused by the aging population but temporarily eased due to the pandemic-induced economic slowdown, is compounded by recovering economic activities, a recent survey found.

Of over 11,000 businesses surveyed in September by Teikoku Databank Ltd., 50.1 percent said they felt a labor crunch, the first time a majority expressed that view since November 2019.

Eased border controls and the government’s travel discount program to boost tourism have raised hopes for a further industry recovery, but some firms were also concerned that they may not be able to cater to market demand due to the labor shortage, according to Teikoku Databank.

A total 30.4 percent of businesses also said there was a shortage of nonregular workers. Eateries and the hospitality sector, which traditionally have higher ratios of nonregular workers, were particularly hard hit at 77.3 percent and 62.3 percent, respectively.

For full-time employees, the crunch was most notably felt by the information services sector at 71.3 percent, followed by recruitment at 65.0 percent, and maintenance and security industries at 64.6 percent.

Teikoku Databank conducted the survey between Sept. 15 and 30, and received valid responses from 11,621 companies.


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