Moreover, considering that firms had postponed their fixed investment for a long time due to the effects of hysteresis, it is plausible that at the time of investment, they will decide to replace their facilities and equipment with the latest ones with higher productivity. The effects of expanding production capacity and saving labor can therefore be considered highly likely to steadily materialize.
Alongside this, the increase in business fixed investment in the nonmanufacturing sector is also worth taking note of. The third stage is a rise in the labor force participation rate, reflecting an acute labor shortage.