Working Environment of the Service Industry

According to a labor market survey conducted by the PERSOL Group, only 64.29 million workers are expected to be supplied in 2030, compared to a labor demand of 70.73 million, resulting in a "labor shortage of 6.44 million workers. The labor shortage in the service industry, located on the left side of the graph, is particularly serious, with a supply of only 17.01 million workers compared to a demand of 21.01 million, resulting in a shortage of 4 million workers. The supply of human resources is expected to be unable to keep up with the rapid aging of the population and the declining birthrate, as well as the diversification and diversification of industries and the ever-increasing shift of industries to services.

In response, companies are taking labor-saving and labor-saving measures as if they were competing with each other. Typical examples include the introduction of self-checkout systems in the retail industry, the use of AI in ordering and inspection systems, and in the restaurant industry, the deployment of robots for cooking and serving food, and the introduction of touch panel systems for ordering products. In the backyard, where customers cannot see what is going on, IT tools are being introduced one after another for inventory management systems, employee shift and attendance management, and human resource management to promote greater operational efficiency.

In addition to labor-saving and labor-saving measures, measures to secure human resources are being considered in various fields. For example, the government is actively promoting the expansion of long-term employment of specific skills. In the Corona Disaster, there has been no movement for some time to secure labor from outside of Japan, but the government is moving forward at a rapid pace to promote the use of non-native human resources. In addition, systems related to employment support, such as the rehiring of retired seniors and reskilling of housewives, can also be seen. There is also a trend toward spot workers becoming the mainstay of operations in industries such as the restaurant industry.

While it is expected that moves to secure labor and improve operational efficiency will continue to increase, it seems unlikely that the labor shortage itself will be resolved.

Excluding agriculture, forestry, fisheries, manufacturing, and information and telecommunications industries, there are more than 40 million people engaged in industries where services are provided through human hands. According to the Labor Force Survey, the total number of workers is approximately 67 million, which is equivalent to about 60% of the total workforce, and it is said that service-related industries account for almost 70% of the GDP as well, making them a key industry in Japan. The shift of industries to services is progressing on a global scale, and its impact on the overall economy will continue to grow in the future.

According to the Ministry of Health, Labour and Welfare's "Report of the Study Group on Radically Strengthening Skills Development of Non-regular Workers," the number of non-regular workers is on the increase regardless of industry, and it is reported that it now exceeds one-third of all employed persons. It is believed that this is due to cost-cutting measures on the part of companies as well as the diversification of work styles on the part of workers.

In industries that are provided from person to person (blue graph), there are many examples of non-regular employees in particular serving as the mainstay of the workforce. As shown above, more than 50% of the workforce in the top three industries is made up of non-regular employees, led by 75% in lodging and food services. In some small restaurants and retail stores, part-time or casual employees serve as "limited-time store managers (base managers)," in which case the scope and volume of work they are entrusted with is almost the same as that of regular employees.

The wage gap between regular employees and non-regular employees is often taken up as a major social issue. The above graph shows the wage gap by employment status regardless of industry. While regular employees tend to receive salary increases until the age of 59, there is almost no change by age for non-regular employees, and there is almost no salary increase due to long-term continuity. In addition, while regular employees are provided with opportunities for skill development and skill enhancement through OFF-JT in addition to OJT, comparable opportunities are rarely provided to non-regular employees. According to a report by the Ministry of Health, Labour and Welfare (MHLW), the 2011 Basic Survey on Capacity Development revealed that the implementation status of OFF-JT and planned OJT was 71.4% and 63.0%, respectively, for regular employees, while it was low for non-regular employees, at 32.9% and 30.8%, respectively.

The turnover rate tends to be high, correlating with the wage situation. The above survey results do not distinguish between regular and non-regular workers, but the figures are expected to be even higher if limited to non-regular workers. It is thought that the chronic shortage of labor is the result of a cycle in which workers are hired at low wages and have no opportunity for regular salary increases or skill improvement, making it difficult for them to benefit from long-term employment and develop a career path, which in turn leads to job turnover.

There is no end to the number of cases where workers leave their jobs early because they are not taught satisfactorily or do not fit in with the workplace, even though they have taken the trouble to join a company or enter the workforce. In order to increase the added value of the service industry, we believe it is essential to create an environment that encourages the growth of each individual in the company and rewards them according to their skills and job performance.

As the term "the lost 30 years" indicates, the number of non-regular employees, which was less than 9 million in 1990, will more than double to more than 20 million by 2022. As the industrial structure changes and the races, ages, lifestyles, and values of those who work there become more diverse, many people are choosing to work part-time with the goal of maintaining a work-life balance, for example. Even under such circumstances, it must be said that few companies still provide employees with the same opportunities for skill development, skill improvement, motivation management, and salary increase systems as those for regular employees. It is necessary to visualize the abilities and skills of each individual employee and create an environment in which they can maximize their value.

We are close to the frontlines and management of the service industry and continue to pursue the evolution of our services to realize an environment in which employees can work with vitality.