Japan faces severe labor shortages across various industries

A recent survey by the Japan Chamber of Commerce and Industry and the Tokyo Chamber of Commerce reveals that 60% of surveyed companies are experiencing labor shortages. Nearly half of these businesses report that the shortage is severe enough to hinder operations. The impact is particularly acute in the construction (77.4%), transportation (72.2%), and nursing/caregiving (70.5%) sectors.

Small businesses face significant risks, with 8.2% of companies employing 20 or fewer people expressing concerns about business continuity or potential closure due to lack of staff. While 75.7% of companies are attempting to address the issue through intensified recruitment, only 40.2% are utilizing digital tools, machinery, or AI to reduce labor requirements. Notably, among listed companies, only 7% have explicitly mentioned the implementation of AI as a countermeasure in their securities reports.

Regarding foreign labor, 25.1% of companies currently employ foreign workers, with high concentrations in hospitality, manufacturing, and caregiving. Many businesses indicated that difficulty in recruiting new foreign talent would disrupt operations. Additionally, the survey highlighted challenges in disability employment and supporting employees balancing work with childcare or eldercare.