Labor shortages affecting 70 percent of Japan firms

September 27, 2019

Tokyo--Labor shortages are affecting business operations at some 70 pct of Japanese companies, with firms in the countryside in particular facing a severe situation, an annual report from the labor ministry revealed Friday.

The 2019 white paper on the labor economy showed the results of a survey carried out for some 20,000 companies with 20 or more workers across Japan. Of them, 4,599 gave responses.

Of the companies that cited problems arising from labor shortages, 43 pct, the largest group, said that their existing operations have been affected. Nearly 40 pct each cited difficulties passing down techniques and know-how to younger generations and meeting new customer demand.

Asked about factors behind labor shortages, some 70 pct said it is becoming difficult to hire new workers.

According to the survey, 51.7 pct of companies in the Tokyo, Osaka and Nagoya metropolitan areas said that they have seen no applications to job positions they offered. The proportion was higher in regions other than the three major urban areas, at 67.5 pct.

The hotel, restaurant, construction, medical and many other industries face growing difficulties securing workers, the white paper suggested.

To cope with the situation, the report pointed to the need for efforts to improve turnover and retention rates. "It's important for businesses to work on overhauling their employee management systems to improve job satisfaction and create a pleasant working environment," the annual paper said. Jiji Press