My view is that bringing out the potential labor capacity that has not been utilized will likely boost Japan’s labor productivity, which is low compared with that of the U.S. and European economies. On the capital front, an increasing number of firms have been taking measures to establish new factories and expand production capacity against the background of such factors as supply-side constraints.
Furthermore, in response to the tight labor market conditions, firms are making labor-saving investments not only at production sites but in various workplaces. At the same time, they are proceeding with streamlining and sophistication of business process. For example, the financial industry is moving ahead with advancing financial technology as well as making efforts to improve business efficiency.