Thus, once Japanese companies recover their earnings power to a certain extent, their next challenge will be to make their capital equipment more productive through new investments. Many Japanese companies have also reduced labor costs by restraining the hiring of new regular employees.
Such labor restructuring tends to put an undue burden on the younger generation, and entails the risk that the vitality of the economy might be impaired if the situation persists and the younger generation's willingness to participate in the labor force diminishes.