Fewer workers, higher wages hurting Japan Inc

Tokyo

ASK the president of Japan's largest daycare chain what his biggest headache is, and Kazuhiro Ogita doesn't hesitate: workers and wage costs. Not enough of one, too much of the other.

Unable to hire enough employees to staff its nurseries at a time of strong demand, JP-Holdings Inc is paying more overtime and bringing in part-time workers to fill shifts. That's eating into its bottom line - a trend seen across Japan's labour intensive industries, from delivery companies to restaurants and even the 400,000-employee postal system.