Labor shortage
Japan’s apparent aging and decreasing population is causing the greatest shortages of manpower for labor-intensive sectors. Industries like hotels, restaurants, and elderly care facilities are less capable of offering competitive wages as they hit lowest on productivity per employee. Also, the elderly care system is undermined by government efforts that set the compensation down. In 2015, the average monthly wages in Japan fell for the fourth consecutive year. The central bank’s target for the average monthly wage increase is 2% for 2016, but the labor ministry data records an increase of only 1% in September. Adding to this labor predicament is the sabotage of employees’ bargaining power due to the…
Read more