ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Japan's COVID emergency is over. Labor and chip shortages are not

From supply woes to piled-up savings, path to recovery fraught with hurdles

A distribution center near Osaka: Japan faces a shortage of warehouse workers. (Photo by Toshiki Sasazu)

TOKYO -- Japan's streets are beginning to bustle again after emerging from a monthslong pandemic state of emergency, but the country still faces an uphill slog toward economic recovery as supply chain disruptions and labor shortages drag on.

The automobile industry has been one source of concern. Amid a chip shortage that stretches to coronavirus-hit Southeast Asian suppliers, Toyota Motor will cut global production by 40% from previous plans this month and temporarily halt all vehicle plants in Japan. Honda will decrease Japanese output by 30% from previous October plans.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more