Risk of Recession and Declining Customer Demand for Personnel
First written in FY2016. 7 of 15 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2025.
Career moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 15 of 22 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「In particular, a sharp rise in personnel acquisition costs caused by tight labor market conditions against a backdrop of soaring prices, higher minimum wages, and demands for wage increases associated with revisions to medical and long-term care reimbursement may affect the performance of our group.」
The disclosure identifies soaring prices, tight labor market conditions, minimum wages, and cost increases associated with revisions to medical and long-term care reimbursement as key industry risks, replacing the previous focus on recession and declining customer demand. - FY2024-Q2RestatedAnnual report
「However, as the high-margin special-demand projects related to the COVID-19 pandemic that had contributed significantly to revenue and profit began to wind down, the revenue mix returned to consist solely of existing businesses. Although performance was in line with the initial plan, the result was significantly below the same period of the previous year.」
The company states that the wind-down of special-demand projects related to the COVID-19 pandemic and the return to existing businesses have resulted in performance remaining below the same period of the previous year. - FY2024-Q1MaterialisedAnnual report
「However, as the high-margin special-demand projects related to the COVID-19 pandemic that had contributed significantly to revenue and profit began to wind down, the revenue mix returned to consist solely of existing businesses. Although performance was in line with the initial plan, the result was significantly below the same period of the previous year.」
The company states that the high-margin special-demand projects related to the COVID-19 pandemic wound down and the revenue mix returned to existing businesses only, resulting in actual year-on-year declines in revenue and profit. - FY2023RestatedAnnual report
「The COVID-19 pandemic temporarily caused market conditions to deteriorate and existing customers’ demand for personnel to decline. Although social conditions are currently showing signs of recovery, if the economy enters a further recession, factors such as a sharp decrease in the number of worker dispatch contracts with customers and lower demand for recruitment services could affect our group’s business performance.」
The company continues to describe the deterioration in market conditions and decline in customer demand caused by the pandemic, together with the risk of declining demand during a recession. - FY2022RestatedAnnual report
「As of the end of the fiscal year, the impact of COVID-19 included reductions in client companies’ capacity to accept dispatched workers and in shifts for existing dispatched workers, resulting in lower revenue due to reduced working hours and a higher cost ratio due to factors such as increased use of paid leave.」
The company continues to describe the situation in which the pandemic has caused reductions in acceptance capacity and shifts, lower revenue and a higher cost ratio, as well as the risk of declining demand in a future recession. - FY2021MaterialisedAnnual report
「As of the end of the fiscal year, the impact of COVID-19 included reductions in client companies’ capacity to accept dispatched workers and in shifts for existing dispatched workers, resulting in lower revenue due to reduced working hours and a higher cost ratio due to factors such as increased use of paid leave.」
The company states that COVID-19 actually caused reductions in customers’ capacity to accept workers and in shifts, lower revenue and a higher cost ratio. - FY2021-Q3RestatedAnnual report
「Regarding the impact of COVID-19, in the white-collar field of the Senior Work business, we received orders for call center operations related to COVID-19, contributing to revenue. However, orders for projects received before the spread of COVID-19 declined, and overall orders have not recovered to pre-pandemic levels. Meanwhile, the Senior Care business dispatches staff to caregiving facilities and other locations and was not significantly affected even under these social conditions.」
The explanation that orders for projects received before the spread of COVID-19 have continued to decline and order levels have not recovered in the Senior Work business, while the Senior Care business has not been significantly affected, is reiterated. - FY2021-Q2MaterialisedAnnual report
「Regarding the impact of COVID-19, in the white-collar field of the Senior Work business, we received orders for call center operations related to COVID-19, contributing to revenue. However, orders for projects received before the spread of COVID-19 declined, and overall orders have not recovered to pre-pandemic levels. Meanwhile, the Senior Care business dispatches staff to caregiving facilities and other locations and was not significantly affected even under these social conditions.」
The company states that COVID-19 has continued to reduce orders for existing projects and prevent order levels from recovering in the Senior Work business, while having no significant impact on the Senior Care business. - FY2021-Q1MaterialisedAnnual report
「In the white-collar field of the Senior Work business, we received orders for call center operations related to COVID-19, contributing to revenue, but orders have not recovered to the level before the spread of COVID-19. Meanwhile, the Senior Care business dispatches staff to caregiving facilities and other locations and was not significantly affected even under these social conditions.」
The company states that orders in the Senior Work business have not recovered to pre-pandemic levels due to COVID-19, while the impact on the Senior Care business was limited. - FY2020MaterialisedAnnual report
「The COVID-19 pandemic temporarily caused market conditions to deteriorate and existing customers’ demand for personnel to decline. Although social conditions are currently showing signs of recovery, if the economy enters a further recession, factors such as a sharp decrease in the number of worker dispatch contracts with customers and lower demand for recruitment services could affect our group’s business performance.」
The company states that the deterioration in market conditions and decline in customer demand for personnel previously described as future risks actually occurred due to COVID-19. - FY2020-Q3MaterialisedAnnual report
「Regarding the impact of COVID-19, client companies began reducing their capacity to accept new dispatched workers and adjusting the shifts of staff already working from early April 2020. As a result, revenue from the Senior Work business fell below the initial forecast.」
As in the previous quarter, the company states that client companies actually reduced their capacity to accept new dispatched workers and adjusted staff shifts, causing revenue from the Senior Work business to fall below the initial forecast. - FY2020-Q2MaterialisedAnnual report
「Following the government’s declaration of a state of emergency in response to the recent spread of COVID-19, our group has also begun to see effects such as a decrease in new hiring capacity at client companies due to the closure of their workplaces.」
Previously, recession and declining customer demand for personnel were described as future risks, but the company now states that the effects of workplace closures at client companies and reduced new hiring capacity due to the spread of COVID-19 have begun to materialize. An impact on the Senior Work business is expected, while the impact on the Senior Care business is expected to be minor. - FY2019RestatedAnnual report
「If market conditions deteriorate, existing customers’ demand for personnel declines significantly and the economy enters a recession, factors such as a sharp decrease in the number of worker dispatch contracts with customers and lower demand for recruitment services could affect our group’s business performance.」
The risk of fewer dispatch contracts and lower recruitment demand due to a recession and declining customer demand for personnel is reiterated. - FY2017RestatedAnnual report
「If market conditions deteriorate, existing customers’ demand for personnel declines significantly and the economy enters a recession, factors such as a sharp decrease in the number of worker dispatch contracts with customers and lower demand for recruitment services could affect our business performance.」
The risk of fewer dispatch contracts and lower recruitment demand due to a recession and declining customer demand for personnel is reiterated. - FY2016First statedAnnual report
「If market conditions deteriorate, existing customers’ demand for personnel declines significantly and the economy enters a recession, factors such as a sharp decrease in the number of worker dispatch contracts with customers and lower demand for recruitment services could affect our business performance.」
The company identifies a decrease in dispatch contracts and demand for recruitment services due to deteriorating market conditions and declining demand from existing customers.