With the labor shortage growing more acute, the corporate sector has been urged to increase labor-saving investment through utilizing the Internet of Things (IoT) and artificial intelligence (AI), as well as investment intended for domestic capacity expansion.
Progress in labor-saving investment is also suggested by the fact that software investment has been expanding recently in some previously labor-intensive industries of the nonmanufacturing sector, such as construction as well as accommodation and food services. Labor-saving investment leads to an improvement in labor productivity through a rise in capital intensity, which represents capital per worker.