#Japan #Tokyo #My Number Card #SME survey #National Corporate Association

Overview of the Survey

In December 2023, the National Corporate Association (全法連) conducted its semi-annual economic climate survey, targeting the sentiment of small and medium-sized enterprises (SMEs) across Japan. Approximately 70,000 member companies, primarily made up of SMEs, participated. Utilizing the Corporate Association Survey System, the survey garnered responses from 1,762 business leaders, representing an 11.5% response rate.

Key Findings

The survey results indicated a general improvement in business conditions among member companies. Compared to the previous survey in June 2023, the proportion of respondents reporting favorable business conditions increased by 2.2% to reach 23.9%. Notably, the construction industry saw a substantial rise, with 33.8% of participants indicating positive conditions – an increase of 7.3% from the last survey. Similarly, the wholesale and retail sectors recorded a favorable 20.2%, reflecting a recovery trend.

On the other hand, the survey spotlighted a stark contrast in other industries. The hospitality and food service sector showed signs of recovery as well, with 28.6% of respondents reporting improved conditions, up 2.6% from June. However, the manufacturing sector remained stagnant at 19.7%, reflecting a slight decline of 0.4%. The transportation industry faced a continued downward trend, with only 15.4% rating their conditions positively, decreasing by 2.9%.

Employment Status and Labor Shortages

The survey also addressed employment challenges, revealing that 54.8% of respondents still face labor shortages—a number unchanged from the previous survey. In response, approximately 80% of companies have initiated improvements in working conditions and compensation, while around half are making efforts to enhance workplace environments. Many companies are actively tackling labor shortages through operational process improvements and strategic adaptations.

My Number Card Utilization

In a parallel inquiry regarding the My Number Card utilization—Japan’s national identification card—the survey indicated that over 90% of users are employing the card as a health insurance credential. Additionally, its use in convenience stores for obtaining certification and identification purposes is on the rise. Despite this, there are notable concerns; one in four respondents remains reluctant to use or possess the My Number Card, citing fears of data breaches and a lack of perceived benefits.

Expert Opinions

Professor Yasuhiro Yasuda from Hitotsubashi University commented on the findings, emphasizing the necessity for continued digitization in response to an aging and declining workforce. He noted that while the My Number Card can contribute to reducing administrative costs, it is crucial for facilitating smooth governmental operations and enhancing digital services.

Conclusion

The December 2023 survey by the National Corporate Association provides valuable insights into the economic climate for SMEs in Japan, highlighting both positive developments and challenges within various sectors. The contrasting experiences across industries highlight the complexity of the current economic landscape, emphasizing the need for tailored strategies to foster growth and address ongoing employment concerns. With the increased focus on digital solutions like the My Number Card, the path ahead for Japanese SMEs will require adaptability and innovation to navigate the evolving market dynamics effectively.