Japan’s labor shortage remains a serious issue with 51% of companies reporting that they did not have enough employees, according to survey results released last week.

As the labor market continues to shrink, companies have raised worsening labor shortages as one of the biggest concerns that could cause their performances to decline, with 313 companies having gone out of business in the fiscal year of 2023 as a result.

Data compiled by Teikoku Databank showed that out of the over 27,000 companies surveyed in April, labor shortages were most notable in the field of information technology engineering. Over 70% of companies in the industry said they didn't have enough workers, with some saying that despite the ongoing boom in artificial intelligence technologies, they had to give up on projects because they were under-resourced.