Faced with the worst labour shortage in decades, Japanese service companies are finally turning to labour-saving technology, an investment that could lift the sector’s woeful level of productivity and allow them to raise wages.
While Japan’s manufacturers are renowned for deploying advanced robotics, most domestic-focused services companies fell behind in information technology investment, put off by a stagnant economy, restrictive labour rules and a shrinking domestic market. But as the workforce declines and the nation ages, businesses in areas like nursing and retail have found it harder to attract and keep staff.