Japan in the World

Impact of the COVID-19 Pandemic on the Labor Market Changes in Supply-Demand for Labor by Industry ↑ Easing of supply-demand due to COVID-19 Tightening of supply-demand under the Abe administration Changes, points in the Bank of Japan Tankan Employment Conditions Diffusion Index 80 60 60 40 40 20 ° -20 -40 -60 12/2012 survey 9/2019 survey (A) 3/2020 survey 6/2020 survey (B) -A+B Mining & quarrying of stone and gravel Construction Information services Petroleum & coal products transportation machinery Shipbuilding, heavy machinery & other Retailing Processed metals Ceramics, stone & clay Services for businesses Nonmanufacturing average General-purpose, production & business Pulp & paper Wholesaling oriented machinery All industries average Iron & steel Food & beverages Transport & postal activities Other information communication Real estate Electric & gas utilities Manufacturing average Chemicals Electrical machinery Goods rental & leasing Lumber & wood products Nonferrous metals Textiles Other manufacturing Services for individuals Communications Accommodations, foodservice Motor vehicles NOMURA As commonly discussed lately, the COVID-19 pandemic is radically transforming our lifestyles, and normalizing a new way of life. At the same time, the current changes to economic and social structure dubbed With-Corona are by no means temporary, and will likely by carried on to the Post-Corona era One example of this is the mainstreaming of working from home and remote work. The establishment of new work styles is also changing the face of the labor shortage which grew rapidly through the eight years of the Abe administration on the back of demographic change. Some industries may be gaining the outlook that changes in work styles during the pandemic will lead to a systemic improvement of labor shortage Source: Bank of Japan material 10

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