Japan: businesses responding to a continuing manpower shortage

In spite of moves to employ older workers and to rationalize human resources, Japan’s manpower shortage continues to worsen and is plunging the country’s labor market into a dilemma at a time when the active labor force is shrinking. The sectors worst affected are catering and retailing, which hire mostly interim and part-time workers. However, even companies like McDonald’s Japan, Amazon and the 7-Eleven local supermarket chain are starting to develop strategies to combat the issue via raising the number of permanent employees being hired and automating simple tasks.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Historic rise in the number of permanent employment contracts. In February 2017 the job offer to applicant ratio rose to its highest level in twenty-five years at 1.43. At 2.8% Japan’s unemployment rate is currently running at a twenty-two year low and the country’s active labor force fell from a high of 87.2 million in 1995 to 77.2 million a decade later. Labor force forecasts for 2025 are around 70.8 million and it expected that there will then be a 5.83 million-labor market shortage. In a bi

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
EU: social partners split over competitiveness and action on job quality
The European Trade Union Confederation and BusinessEurope have published their response to the consultation document on the European Commission's upcoming EU quality jobs initiative. The two...
4 February 2026
2026 TRENDS — Social dialogue, a major challenge in the deployment of AI in companies
mind RH is analysing the trends that will shape 2026. Artificial intelligence is emerging as a force that goes far beyond efficiency gains and productivity improvements. It is reshaping tasks...
4 February 2026
The major trends of 2026
New regulations coming into force, economic uncertainty, evolving skills requirements… More than ever, the HR function will play a strategic role within organizations in 2026. mind HR...
Germany: collective bargaining negotiations begin in chemical industry
Collective bargaining talks in Germany’s chemical and pharmaceutical industries are due to open this week, covering nearly 580,000 employees across around 1,700 companies. With the sector facing...
3 February 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Germany: government seeks to facilitate immigration of skilled Indian workers
During a visit to India earlier this week, German Chancellor Friedrich Merz addressed the strategic importance of attracting Indian workers to Germany, signing a series of cooperation agreements...
2
France: 2026 budget expected to maintain employer contribution relief
On 19 January 2026, French Prime Minister Sébastien Lecornu decided to invoke Article 49.3 of the Constitution to pass France's 2026 budget without a vote in the National Assembly. Three days...
3
EU: Cyprus unveils its six-month presidency programme
Cyprus has set out its priorities for its six-month presidency of the Council of the EU. On the social front, the centre-right government will focus on the Union of Skills, which aims to boost...
4
Informal economy and slow wage growth hamper decent work, ILO says
The International Labour Organisation published its Employment ans Social Trends 2026 on 14 January. It anticipates unemployment stabilising in 2026 and employment growth of 1%, driven by...