Labor Crunch: The Silent Threat to Japan's Papermaking Legacy

Masato Shiota revitalized his papermaking business in Japan, yet faces labor shortages affecting production. A nationwide shortfall threatens small businesses, which provide most jobs. The government's economic strategies confront challenges, especially in rural areas, as automation and creative hiring struggle to counteract an aging workforce.

Masato Shiota has worked tirelessly over the past decade to save his struggling papermaking business in Ino, Japan. Paying off debts and acquiring automated machinery, Shiota brought Wako Seishi back from the brink. However, a dire labor shortage is hampering his progress in full-capacity production.

Japan, facing a shortage of 3.4 million workers by 2030, sees smaller businesses like Shiota's struggling. With the country's aging population, labor shortages threaten to dismantle businesses that have invested in innovative hiring practices and automation. A recent study highlights the worrying trend of companies going bankrupt due to insufficient workforce support.

Despite some government support, many small and medium-sized enterprises, including traditional crafts like papermaking, grapple with finding skilled workers. Japan remains cautious about large-scale immigration, further intensifying this challenge. The looming 'economic metabolism' prompts policymakers to address rural revitalization yet offers few clear solutions.

(With inputs from agencies.)