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How labour shortages are reshaping daily life and politics in Japan

As Sanae Takaichi becomes Japan’s first female prime minister, the country confronts an “enshortification” crisis — fewer workers, slower services, and harder choices on immigration.

October 09, 2025 / 11:25 IST
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Japan faces severe workforce shortage

Japan’s workforce crisis is no longer a distant forecast but a lived reality. From carpenters and chefs to soldiers, bus drivers and accountants, the country is running perilously low on people to do essential jobs. In construction, where wood is widely used, the number of carpenters has halved since 2020, and nearly half of those who remain are over 65. Tokyo bus operators have already cut services because they cannot recruit enough drivers. Even government ministries are struggling: the Foreign Ministry admitted this year it cannot hire enough Japanese chefs for its embassies, the Financial Times reported.

The shortage is felt in everyday life. Deliveries that once came swiftly are now slower, customer service feels less personal, and public services are stretched. Economists have described this across-the-board decline as “enshortification” — a shrinking not only of the labour force but also of the quality and pace of services Japanese citizens once took for granted.

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Why the shortage is different this time

Japan has been living with an ageing population for decades, but several forces are now colliding at once. Inflation has eroded household budgets, wages have not kept pace, and younger workers are not entering professions at the rate older ones are retiring. At the same time, the social expectation of world-class service has remained, making every decline more noticeable. For a society that prides itself on efficiency and politeness, even small lapses in service carry an outsized impact.