Labor Shortages, Recruitment Challenges and Rising Labor Costs in the Security Services Industry
First written in FY2019. 8 of 16 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Kyoei Security Service moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 15 of 29 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group operates in a labor-intensive industry in which employees provide people-based services and depends heavily on human resources. In the challenging environment of a declining domestic population and declining birthrate combined with an aging population, if recruitment conditions deteriorate or recruitment costs increase, or if the Group is unable to secure the personnel necessary to operate its business because key employees leave or a large number of employees depart at the same time, it may become difficult to sustain its security operations.」
The Group has outlined the full scope of personnel procurement risks, from population decline and the declining birthrate combined with an aging population to higher recruitment costs, the departure of key employees and the potential inability to sustain security operations due to simultaneous departures. - 2026-09-11WorsenedEarnings
「The industry faced structural challenges, including a serious labor shortage, an aging population, and revisions to related laws and regulations, making this a turbulent period during which industry restructuring advanced rapidly.」
The company specifically identifies an aging population, in addition to labor shortages, as a structural challenge, highlighting the difficult industry environment. - FY2025-H1WorsenedAnnual report
「Meanwhile, the effective job openings-to-applicants ratio for security occupations was 6.68x as of September 2024 (announced by the Ministry of Health, Labour and Welfare on 29 October 2024), indicating an extremely challenging recruitment environment. The labor shortage has become severe enough to constrain business activity. In addition, although wages continue to rise amid intensifying competition for talent, the labor share in the security services industry is already high, limiting the scope for sustained wage increases amid rising prices. The environment surrounding the security services industry is therefore changing significantly.」
Although the effective job openings-to-applicants ratio fell from 7.31x in the previous disclosure to 6.68x, the company explicitly stated that the labor shortage had become severe enough to constrain business activity. It also added rising wages resulting from competition for talent, the high labor share, and the limits to sustained wage increases. - FY2024-Q3WorsenedAnnual report
「The effective job openings-to-applicants ratio for security occupations was 7.31x as of December 2023, indicating an extremely challenging recruitment environment that is affecting business activity in the security services industry.」
The effective job openings-to-applicants ratio rose from 7.02x in the previous quarter to 7.31x, showing the increasingly challenging recruitment environment with a higher figure. - FY2024-Q2WorsenedAnnual report
「Stable demand continues, but the extremely difficult recruitment environment, with the effective job-offers-to-applicants ratio for security occupations at 7.02x as of September 2023, is affecting business activity in the security services industry.」
The effective job openings-to-applicants ratio rose from 6.04x in the previous fiscal year to 7.02x, showing the increasingly challenging recruitment environment with a higher figure. - FY2024-Q1RestatedAnnual report
「Although demand remains stable, the effective job openings-to-applicants ratio for security occupations was 6.04x as of June 2023, and this extremely challenging recruitment environment is affecting business activity in the security services industry.」
The company cited an effective job openings-to-applicants ratio of 6.04x and said that although the figure declined from the previous fiscal year, the recruitment environment remains extremely challenging and is affecting business activity. - FY2023WorsenedAnnual report
「The effective job openings-to-applicants ratio for security occupations was 6.58x in March 2023, and the severe labor shortage is continuing.」
The effective job openings-to-applicants ratio indicating the labor shortage rose from 5.89x in the previous disclosure to 6.58x, showing the increasingly challenging recruitment environment with a higher figure. - FY2023-Q3WorsenedAnnual report
「Meanwhile, management issues affecting business activity in the security services industry include the inability to raise security fees, the difficulty of attracting applicants despite recruitment efforts, and the full-scale start of repayments on the effectively interest-free and unsecured "zero-zero loans."」
In addition to the conventional references to recruitment difficulties and rising labor expenses, the company has made the recruitment challenge more specific by stating that applicants cannot be attracted even when positions are advertised. - FY2023-Q2RestatedAnnual report
「Meanwhile, pressure for prices to decline due to price competition with competitors, along with rising labor expenses and recruitment costs against the backdrop of the labor shortage, is affecting business activity in the security services industry.」
The company has reaffirmed that rising labor expenses and recruitment costs resulting from the labor shortage are risks affecting business activity in the security services industry. - FY2022WorsenedAnnual report
「The effective job openings-to-applicants ratio was 5.89x in March 2022, and the severe labor shortage is continuing.」
The company cited an effective job openings-to-applicants ratio of 5.89x to illustrate the ongoing labor shortage, and said that failure to meet recruitment plans and the loss of human resources could affect performance. - FY2021RestatedAnnual report
「Meanwhile, the labor shortage in the security services industry remains severe, and the company continues to face a challenging operating environment, including rising recruitment costs and labor expenses.」
The company continues to identify the severe labor shortage and increases in recruitment costs and labor expenses in the security services industry as operating-environment risks. - FY2020RestatedAnnual report
「Meanwhile, the labor shortage in the security services industry remains severe, and the company continues to face a challenging operating environment, including rising recruitment costs and labor expenses.」
The company said that the severe labor shortage, increases in recruitment costs and labor expenses, and the challenging operating environment are continuing. - FY2020-Q3RestatedAnnual report
「Meanwhile, the labor shortage in the security services industry remains severe, and the company continues to face a challenging operating environment, including rising recruitment costs and labor expenses.」
The company has reiterated that the severe labor shortage, increases in recruitment costs and labor expenses, and the challenging operating environment are continuing. - FY2020-Q2RestatedAnnual report
「Meanwhile, the labor shortage in the security services industry remains severe, and the company continues to face a challenging operating environment, including rising recruitment costs and labor expenses.」
The company has reiterated that the severe labor shortage and increases in recruitment costs and labor expenses remain part of the challenging operating environment. - FY2020-Q1RestatedAnnual report
「Meanwhile, the labor shortage in the security services industry remains severe, and the company continues to face a challenging operating environment, including rising recruitment costs and labor expenses.」
The company has reiterated that the severe labor shortage and increases in recruitment costs and labor expenses remain part of the challenging operating environment. There has been no major change in the nature of the risks. - FY2019First statedAnnual report
「The labor shortage in the security services industry is severe, and the company remains in a challenging operating environment due to recruitment difficulties and rising labor costs associated with retaining employees, among other factors.」
The company identifies the labor shortage, recruitment difficulties and rising labor costs associated with retaining employees as ongoing operating-environment risks.