Risk of Constraints on Business Expansion Due to Labor Shortages
First written in FY2023. 3 of 4 entries say "Worsened", first in FY2025-Q1. Latest entry: 2026-10-13.
Riso Kyoiku Group moved to the "Worse" side of this theme in 2024, 1 year before the typical company in this theme (2025).
12 other companies' latest entry also says "Worsened".
- 2026-10-13WorsenedM&A and Subsidiary Changes
「The most significant current and future management challenges for the Target Company Group are the shrinking target demographic associated with the declining birth rate, difficulty recruiting talented personnel resulting from the declining working-age population, and rising personnel expenses,」
The disclosure explicitly identifies difficulty recruiting talented personnel and rising personnel expenses as the most significant current and future management challenges concerning human resources. - FY2026-H1WorsenedAnnual report
「Meanwhile, in the labor market, rising personnel expenses accompanying the worsening labor shortage are affecting the management of companies. Together with rising prices, this means that the business environment remains unpredictable.」
The worsening labor shortage and rising personnel expenses were added to the assessment of the external environment as factors affecting companies’ management, reinforcing the background to the personnel recruitment risk. - FY2025-Q1WorsenedAnnual report
「During the first quarter of the current consolidated fiscal year, employment and income conditions improved, including through faster wage growth against a backdrop of increasingly severe labor shortages. However, real wages declined due to the impact of higher prices resulting from yen depreciation and other factors, and the economic outlook remains uncertain.」
In relation to the personnel recruitment risk, the worsening shortage of labor was explicitly identified as an external environmental factor. - FY2023First statedAnnual report
「Likelihood: Medium Expected timing: No specific timing Impact: High ● Risk Because the Group is expanding its network of locations in a planned manner while providing high-quality educational services, securing and training personnel, including employees and instructors, is an essential and important factor in expanding and growing the business. If necessary personnel cannot be secured in sufficient numbers because of a sharp change in the recruitment environment, this could affect the Group’s business results and financial position.」
The shortage of personnel and insufficient training are assessed as a standalone risk constraining business expansion, with medium likelihood and high impact.