Disruptions to business execution caused by labor shortages and rising labor costs
First written in FY2020. 4 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 15 of 29 companies on the "Worse" side.
3 other companies' latest entry also says "Other".
- FY2026Reclassified as a high-importance riskAnnual report
「In this year’s assessment, the risks rated as “high” in importance after considering impact and likelihood of occurrence were: (1) under “Social and economic environment”: “natural disasters and other events,” “fluctuations in raw material market conditions” and “social and economic turmoil”; (2) under “Business environment”: “changes in the competitive environment” and “sustainability”; and (3) under “Business operations”: “information systems and information security” and “human capital.”」
Human capital risk was expressly identified as a risk rated “high” in importance after considering impact and likelihood of occurrence. - FY2025-H1RestatedAnnual report
「During the interim consolidated accounting period, no new business or other risks arose. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No material changes were reported in the risk of disruption to operations due to labor shortages and rising labor costs. - FY2024-Q2RestatedAnnual report
「During the six-month period ended the second quarter, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
No material changes were reported in the risk of disruption to operations due to labor shortages and rising labor costs. - FY2024-Q1RestatedAnnual report
「During the first quarter, no new business or other risks arose. There were also no significant changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No material changes were reported in the risk of disruption to operations due to labor shortages and rising labor costs. - FY2023RestatedAnnual report
「The Group is working to improve labor productivity through capital investment and operational efficiency measures, while securing and developing highly specialized personnel in each country and occupation. However, if the Group is unable to secure the personnel it needs due to a declining domestic labor force and rising labor costs worldwide, its operations and business expansion may be disrupted, which may affect its business performance and financial condition.」
The risk of disruption to operations and business expansion due to a declining labor force, rising labor costs and difficulty securing personnel was reconfirmed. - FY2020First statedAnnual report
「The Group is working to improve labor productivity through capital investment and operational efficiency measures, while securing and developing highly specialized personnel in each country and occupation. However, if the Group is unable to secure the personnel it needs due to a declining domestic labor force and rising labor costs worldwide, its operations may be disrupted, which may affect its business performance and financial condition.」
Declining domestic labor availability, rising labor costs in each country and difficulty securing personnel were identified independently for the first time as operational risks.