Decrease in Job Offers in Fiscal 2023 Linked to Technological Advancements and Economic Factors

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Decrease in Job Offers in Fiscal 2023 Linked to Technological Advancements and Economic Factors

In fiscal 2023, there was a decline in the ratio of job offers to seekers compared to the previous year, attributed to the implementation of labor-saving technologies which have led to a decrease in job openings across various sectors. The labor ministry reported that the average number of officially registered job seekers slightly rose by 0.1 percent, reaching around 1.92 million per month, while the average number of active job offers fell by 1.6 percent to approximately 2.47 million.

With industries experiencing severe labor shortages, the use of touch-panel order devices, food-serving robots, and self-service checkouts has increased as businesses opt for labor-saving measures over hiring new workers. Masahiko Yamada of the labor ministry pointed out that businesses are investing in technologies to address understaffing issues, indicating a shift from traditional customer interactions to automated processes in some industries.

Post-pandemic recovery initially drove recruitment efforts in sectors like restaurants and tourism; however, the demand for additional staff subsided in fiscal 2023. Furthermore, a rise in material prices and challenges in the manufacturing and construction sectors, highlighted by a decrease in job offers, has been partially contributed to by economic factors like weakened exports and production interruptions due to issues like testing fraud. The unemployment rate remained stable at 2.6 percent in fiscal 2023, unchanged from the previous year, as reported by the internal affairs ministry in April.