Risk of Higher Labor Costs Due to Surging Crude Oil Prices and Labor Shortages
First written in FY2019-Q1. 2 of 4 entries say "Worsened", first in FY2019. Latest entry: FY2022.
Isetan Mitsukoshi Holdings moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2022WorsenedAnnual report
「Competition for talent is intensifying not only domestically but globally, and the Group recognizes that developing and securing digital talent as digital technologies evolve, as well as personnel with specialized expertise in various fields when launching new businesses, is an urgent priority.」
The risk of labor shortages and higher labor costs has been made more specific as competition to acquire and the urgent need to secure digital and specialized talent. - FY2019WorsenedAnnual report
「In addition to slowing demand related to IT and weaker earnings at consumer-facing companies caused by the worsening labor shortage, concerns include a decline in personal consumption following the planned increase in the consumption tax rate and a contraction of the consumer market due to the expected decline in the number of households from around 2020.」
The worsening labor shortage has been explicitly identified as a factor weakening earnings at consumer-facing companies, broadening the background to the existing risk of higher labor costs. - FY2019-Q3MaterialisedAnnual report
「Real income failed to grow because of inflation and other negative factors associated with rising energy prices, and no significant improvement was seen in personal consumption or consumer sentiment.」
The disclosure states that rising crude oil and energy prices affected the consumption environment through higher prices and sluggish real income growth. - FY2019-Q1First statedAnnual report
「Surging crude oil prices and worsening labor shortages will put downward pressure on earnings through higher labor costs, but the Japanese government has shifted its policy toward more actively accepting foreign workers than before, raising expectations for securing additional labor.」
Higher labor costs resulting from surging crude oil prices and labor shortages have newly been cited as factors putting downward pressure on earnings, alongside expectations of securing labor through the acceptance of foreign workers.