The labor shortage has favorably contributed to creation of new employment and nominal income growth; however, it has also incurred constraints on economic growth by allowing mainly SMEs and firms in nonmetropolitan areas to lose the opportunity to expand or continue their businesses.
For example, owing to a severe shortage of skilled workers and engineers, the construction sector was prevented from adequately expanding the volume of their building construction starts in response to the front-loaded order placement of public investment in April-June 2014. Instead, this sector faced a rapid increase in the unit operating price caused by rising personnel expenses and cost of construction materials.