As 2024 approaches, three issues are likely to generate a good deal of political and economic concern and debate in Hokkaido. These include the impact of the so-called 2024 problem on local transportation and construction sectors, efforts in the city of Chitose to welcome Rapidus and related firms — especially foreign firms and their foreign employees — and efforts to diversify local seafood export markets, especially following China’s ban on Japanese imports.
Like the rest of Japan, Hokkaido is preparing for April 2024, when an annual cap will be set on the number of overtime hours allowed in industries, such as construction and transport, at 720 hours annually. For Hokkaido, the new rule poses a couple of challenges. First is the fact that, due to the Hokkaido Shinkansen project and the coming of the Rapidus semiconductor plant to Chitose in 2025, the labor market is already tight.
Add to that the spike in costs for imported construction materials, which has led to smaller, private construction projects in Sapporo being rethought, as local firms wonder if workers and materials may increasingly be prioritized for the nationally backed shinkansen and Rapidus projects. In addition, the nationally mandated overtime cap next year comes after Hokkaido's minimum wage was raised to ¥960 per hour for all employees in October — an additional cost that local construction and transport firms will also have to figure into their overall personnel budgets for 2024.