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Latest Insights from TSR's Economic Survey

Tokyo Shoko Research (TSR) has recently released its analysis report based on the economic trend survey conducted in March 2025. This survey sampled over 6,172 firms nationwide, aiming to provide a comprehensive understanding of the current business environment and future outlook through quarterly assessments. By visualizing industry trends, company sizes, and regional disparities, the survey seeks to capture early signs of economic activity across the country.

Key Topics of the Survey

1. Economic Performance in Specific Regions

Okinawa, Kumamoto, and Yamanashi have emerged as the top-performing areas, greatly influenced by a resurgence in tourism and significant investments in semiconductor industries. The operation of TSMC's factory has also been a driving force for regional economic revitalization. However, some regions continue to experience sluggish growth, underlining the inequality in economic recovery.

2. Rising Bankruptcy Concerns among SMEs

The survey revealed alarming trends regarding small and medium-sized enterprises (SMEs), particularly those with fewer than 100 employees. Nearly half of these businesses anticipate an increase in bankruptcies within their industries, highlighting the fragile state of their economic foundations and the looming threat of insolvency due to staff shortages.

3. Challenges in Securing Temporary Employment

A grim picture is painted for the job market, with many SMEs admitting to difficulties in hiring non-regular workers. With pressure for wage increases, many companies have found their profitability stifled, preventing them from adapting adequately to changing market conditions.

4. Prevalent Labor Shortages

The construction industry is facing a particularly dire situation regarding labor shortages, not just for regular but also for non-regular employees. The gap between supply and demand across various sectors is evident, raising concerns linked to the increasing number of bankruptcies in those industries.

5. Struggles with Price Passing in Inflation

Businesses are grappling with the difficult challenge of passing on increased costs due to inflation. The rising procurement prices have outpaced the ability to raise sales prices, resulting in scenarios where some companies are forced to lower their selling prices to remain competitive.

6. Labor Shortages in Regional Economies

The disparity in labor availability is especially noticeable in regions like Tohoku and southern Shikoku, where shortages of non-regular workers are severe. This situation underscores the urgent need for support to ensure sustainable economic growth in these areas.

Survey Overview

• - Survey Name: TSR Economic Trends Survey (March 2025)
• - Survey Period: March 3, 2025 – March 14, 2025
• - Methodology: Online questionnaire targeting TSR newsletter member companies
• - Valid Responses: 6,172 companies

Importance of the Report

This quarterly survey not only allows for a time series analysis but also offers deeper insights into trends and economic conditions. Your participation in these ongoing surveys contributes to a real-time grasp of Japan's economic climate, helps clarify issues, and stimulates discussions aimed at finding viable solutions. It also provides valuable feedback for economic policies and corporate strategies.

About Tokyo Shoko Research (TSR)

Headquartered in Chiyoda, Tokyo, TSR has been Japan's oldest credit research firm, boasting a database of over 10.09 million company profiles and a vast network across 81 locations built over 130 years. As the exclusive partner of D&B (Dun & Bradstreet) in Japan, TSR provides access to global business information encompassing over 600 million companies.

For detailed information on the analysis report, please visit: TSR Analysis Report

For more details about our operations, visit TSR Official Site.