〈FY2025 4th SME Management Survey〉Labor Shortage Bankruptcies Hit Record High*; Over 40% of Companies Have 'No Plans to Hire New Graduates'. Many Companies Cautious About Hiring Non-Immediate Hires Amidst Labor Shortage.
Forval GDX Research Institute announced the results of its FY2025 SME management survey. Amidst record-high bankruptcies due to labor shortages, 44.1% of SMEs recognize labor shortages as a management issue. The problem is more severe in larger companies, and a cautious stance towards hiring new graduates and foreign talent was revealed.
📋 Article Processing Timeline
- 📰 Published: April 28, 2026 at 19:00
- 🔍 Collected: April 28, 2026 at 10:31
- 🤖 AI Analyzed: April 28, 2026 at 15:01 (4h 29m after Collected)
Forval GDX Research Institute (Headquarters: Shibuya-ku, Tokyo; Director: Manabu Taira), aiming for the transformation of small and medium-sized enterprises (SMEs) utilizing Green and Digital technologies, conducted the "FY2025 4th SME Management Survey" targeting SMEs.
Japanese SMEs are facing an unprecedented management crisis, with "labor shortage bankruptcies" reaching a record high of 442 cases* in FY2025. Amidst declining real wages due to soaring prices, the "double whammy" of wage increase pressure from employees and fierce recruitment competition with large companies threatens the survival of SMEs. This survey revealed that while 80% of companies with 50 or more employees perceive labor shortages as a serious management issue, "recruitment activities," the mainstream countermeasure, have yielded extremely poor results, especially for small-scale enterprises.
*Tokyo Shoko Research TSR Data Insight
URL: https://gdx-research.com/wp-content/uploads/2026/04/bluereport_202605.pdf
[Survey Results Summary]
① The larger the employee scale, the more severe the labor shortage. The percentage of companies recognizing it as a management issue increases proportionally with employee scale.
② The top countermeasure for labor shortage issues is "conducting recruitment activities," but securing mid-career talent is difficult.
New graduates and foreign talent show a dichotomy of "caution in hiring."
③ "Advertising" is the most common method for both new graduates and mid-career hires. Meanwhile, successful recruiting companies are strengthening their appeal through "external expertise."
[Survey Outline]
・Survey Organizer: Forval GDX Research Institute
・Survey Period: January 14, 2026 – February 13, 2026
・Target Respondents: SME managers nationwide
・Survey Method: Web-based questionnaire, analysis of responses
・Valid Responses: 1,647 people
When using the survey results from this release, please be sure to clearly state: [Surveyed by Forval GDX Research Institute].
Q1. Is labor shortage a management issue? (n=1,647)
Q2. Is labor shortage a management issue? (by employee scale) (n=1,647)
Q3. Occupations experiencing labor shortages (n=727) *Multiple answers allowed
In FY2025, with labor shortage bankruptcies reaching a record high and wage increase pressure intensifying due to declining real wages, 44.1% of SMEs recognize labor shortages as a "management issue." The sense of crisis is particularly strong in larger companies, with 58.6% of companies with 10-29 employees, 64.8% of those with 30-49 employees, and 80.3% of companies with 50 or more employees responding "Yes, it is a management issue." On the other hand, only 33.5% of companies with 0-9 employees responded "Yes," suggesting a risk that structural issues may be delayed as managers take on tasks themselves.
Furthermore, "on-site workers (58.5%)" significantly stand out among occupations experiencing labor shortages, followed by "sales (34.3%)" and "technical staff (28.3%)," indicating an urgent need to secure labor for on-site operations.
Q4. Countermeasures for the issue (n=714) *Multiple answers allowed
Q5. Recruitment status of talent (new graduates) (n=415)
Q6. Recruitment status of talent (mid-career hires) (n=415)
Q7. Recruitment status of talent (foreign talent) (n=415)
Q8. Recruitment status of talent (mid-career hires) (by employee scale, n=415)
As a countermeasure for labor shortages, 58.1% of companies cited "conducting recruitment activities," making it a primary solution. However, looking at the actual recruitment situation, 55.4% of companies responded "want to hire but haven't been able to" for mid-career talent, indicating extreme difficulty in securing them. Additionally, "improving operational efficiency through the utilization of robots, AI, etc." remained at only 11.6%, suggesting that the labor-intensive structure, still reliant on "human replenishment," is a major factor making companies vulnerable to labor shortages. To avoid bankruptcy risks and achieve sustainable management, differentiated strategies leveraging internal business characteristics and diversified strategy considerations incorporating external support are essential.
Meanwhile, 43.4% of companies have "no plans to hire" new graduates, and 66.0% have "no plans to hire" foreign talent. This indicates that despite severe labor shortages, many companies are cautious about hiring non-immediate hires due to concerns about training costs and acceptance systems.
Regarding mid-career hiring, 67.6% of small-scale companies with 0-9 employees responded "want to hire but haven't been able to," highlighting that while SMEs tend to prioritize securing mid-career talent who can contribute immediately, they are struggling to secure talent as desired due to intensified recruitment competition. To maintain and expand their businesses, it is crucial to rethink traditional recruitment methods and strive to become a "chosen company" through establishing talent development systems and improving the workplace environment.
Q9. Initiatives for recruitment (new
Japanese SMEs are facing an unprecedented management crisis, with "labor shortage bankruptcies" reaching a record high of 442 cases* in FY2025. Amidst declining real wages due to soaring prices, the "double whammy" of wage increase pressure from employees and fierce recruitment competition with large companies threatens the survival of SMEs. This survey revealed that while 80% of companies with 50 or more employees perceive labor shortages as a serious management issue, "recruitment activities," the mainstream countermeasure, have yielded extremely poor results, especially for small-scale enterprises.
*Tokyo Shoko Research TSR Data Insight
URL: https://gdx-research.com/wp-content/uploads/2026/04/bluereport_202605.pdf
[Survey Results Summary]
① The larger the employee scale, the more severe the labor shortage. The percentage of companies recognizing it as a management issue increases proportionally with employee scale.
② The top countermeasure for labor shortage issues is "conducting recruitment activities," but securing mid-career talent is difficult.
New graduates and foreign talent show a dichotomy of "caution in hiring."
③ "Advertising" is the most common method for both new graduates and mid-career hires. Meanwhile, successful recruiting companies are strengthening their appeal through "external expertise."
[Survey Outline]
・Survey Organizer: Forval GDX Research Institute
・Survey Period: January 14, 2026 – February 13, 2026
・Target Respondents: SME managers nationwide
・Survey Method: Web-based questionnaire, analysis of responses
・Valid Responses: 1,647 people
When using the survey results from this release, please be sure to clearly state: [Surveyed by Forval GDX Research Institute].
Q1. Is labor shortage a management issue? (n=1,647)
Q2. Is labor shortage a management issue? (by employee scale) (n=1,647)
Q3. Occupations experiencing labor shortages (n=727) *Multiple answers allowed
In FY2025, with labor shortage bankruptcies reaching a record high and wage increase pressure intensifying due to declining real wages, 44.1% of SMEs recognize labor shortages as a "management issue." The sense of crisis is particularly strong in larger companies, with 58.6% of companies with 10-29 employees, 64.8% of those with 30-49 employees, and 80.3% of companies with 50 or more employees responding "Yes, it is a management issue." On the other hand, only 33.5% of companies with 0-9 employees responded "Yes," suggesting a risk that structural issues may be delayed as managers take on tasks themselves.
Furthermore, "on-site workers (58.5%)" significantly stand out among occupations experiencing labor shortages, followed by "sales (34.3%)" and "technical staff (28.3%)," indicating an urgent need to secure labor for on-site operations.
Q4. Countermeasures for the issue (n=714) *Multiple answers allowed
Q5. Recruitment status of talent (new graduates) (n=415)
Q6. Recruitment status of talent (mid-career hires) (n=415)
Q7. Recruitment status of talent (foreign talent) (n=415)
Q8. Recruitment status of talent (mid-career hires) (by employee scale, n=415)
As a countermeasure for labor shortages, 58.1% of companies cited "conducting recruitment activities," making it a primary solution. However, looking at the actual recruitment situation, 55.4% of companies responded "want to hire but haven't been able to" for mid-career talent, indicating extreme difficulty in securing them. Additionally, "improving operational efficiency through the utilization of robots, AI, etc." remained at only 11.6%, suggesting that the labor-intensive structure, still reliant on "human replenishment," is a major factor making companies vulnerable to labor shortages. To avoid bankruptcy risks and achieve sustainable management, differentiated strategies leveraging internal business characteristics and diversified strategy considerations incorporating external support are essential.
Meanwhile, 43.4% of companies have "no plans to hire" new graduates, and 66.0% have "no plans to hire" foreign talent. This indicates that despite severe labor shortages, many companies are cautious about hiring non-immediate hires due to concerns about training costs and acceptance systems.
Regarding mid-career hiring, 67.6% of small-scale companies with 0-9 employees responded "want to hire but haven't been able to," highlighting that while SMEs tend to prioritize securing mid-career talent who can contribute immediately, they are struggling to secure talent as desired due to intensified recruitment competition. To maintain and expand their businesses, it is crucial to rethink traditional recruitment methods and strive to become a "chosen company" through establishing talent development systems and improving the workplace environment.
Q9. Initiatives for recruitment (new