Non-manufacturing sectors fall victim to hiring shortfalls and staff turnover

20251110 Nikko hotel

Lights are turned off on a floor with unused rooms due to staff shortages at a hotel in Nikko, Tochigi prefecture. (Photo by Nanami Sato) 

MOTOKAZU MATSUI and GO SAKURAI

November 16, 2025 10:23 JST

TOKYO — Japan faces significant economic challenges due to labor shortages, and these have resulted in missed opportunities and growth headwinds. The shortfall affects multiple industries, disrupts business operations and increases the likelihood of bankruptcies, highlighting the need to enhance productivity alongside fiscal measures.