[Interviews with 118 Companies] Labor Shortage is Not Just About 'Failure to Hire' - Connect 1st Anniversary Report
Kokopelli Inc. released a reality report based on interviews with 118 SMEs nationwide for the 1st anniversary of its web media 'Connect'. It reveals structural issues behind the labor shortage, such as failure in retention and changing values among youth.
📋 Article Processing Timeline
- 📰 Published: April 8, 2026 at 18:00
- 🔍 Collected: April 8, 2026 at 09:01
- 🤖 AI Analyzed: April 20, 2026 at 20:56 (299h 55m after Collected)
Kokopelli Inc. (Chiyoda-ku, Tokyo, Representative Director and CEO: Shigeru Kondo), which operates the web media for small and medium-sized enterprises 'Connect', will release a reality report based on interviews conducted with 118 companies nationwide over three installments, commemorating the 1st anniversary of its launch in March 2026. The theme of the first installment is 'Labor Shortage'. It has become clear that behind the superficial phenomenon of 'inability to hire', there are three structural issues: 1) failure in retention and training, 2) the gap between the desire for stability and the meaning of work, and 3) barriers to utilizing foreign talent.
## Survey Overview
Survey Name: Connect 1st Anniversary Report 'The Reality of Regional SMEs' Vol.1
Survey Period: March 2025 to March 2026
Target: Executives and personnel of 118 SMEs nationwide (mainly Big Advance member companies)
Survey Method: Individual interviews via face-to-face and online (60-90 minutes per company)
Industries: Wide range including food manufacturing, manufacturing, retail, nursing care/welfare, food and beverage, IT, shipbuilding-related, etc.
## The 'True Nature' of Labor Shortage - 3 Typologies
### Typology 1: Even if hired, they 'quit or don't grow'
'Even if we train 100 people, ultimately only 5 or 6 remain. Even if they grow, they often leave for other companies.'
(Executive of a shipbuilding-related painting business)
In the shipbuilding-related painting business, it takes 4 to 6 years to become fully qualified. Salaries during that period are by no means high, and the reality has become clear that young people who leave immediately after joining the company saying, 'I want a high salary from the beginning' or 'I want to do cleaner work' are endless.
On the other hand, there is also the problem of the cost burden on the company side. One executive in the manufacturing industry says, 'Experienced people do not come to a small company. We manage the business and sales ourselves while training employees who joined with no experience. We have to build more of an organization to aim for the next stage, but we don't have the leeway to train them in the first place.'
Leaving the company just when they finally become useful after spending time on training - the 'lack of retention' problem on the job seeker side is also a 'training costs cannot be recovered' problem on the company side. The labor shortage is becoming more serious as a structural mismatch for both job seekers and companies.
### Typology 2: 'Desire for Stability' and 'Meaning of Work' - The Changing Younger Generation
'The number of employees aiming for independence is almost zero. There are only employees who want to lead a stable life with plenty of their own time. Right now, the discussion of "rights or obligations" inevitably comes first.'
(Board member of a food and beverage chain)
At a food and beverage franchise company that used to have many employees with an independent mindset, a change in the consciousness of young people over the past 30 years was discussed. Changes in attitudes toward work are a voice commonly heard across multiple industries, not just the food and beverage industry.
'For example, they say they want to earn 30 million yen a year. But when I ask them what they want to do with that money, they can't answer...'
## Survey Overview
Survey Name: Connect 1st Anniversary Report 'The Reality of Regional SMEs' Vol.1
Survey Period: March 2025 to March 2026
Target: Executives and personnel of 118 SMEs nationwide (mainly Big Advance member companies)
Survey Method: Individual interviews via face-to-face and online (60-90 minutes per company)
Industries: Wide range including food manufacturing, manufacturing, retail, nursing care/welfare, food and beverage, IT, shipbuilding-related, etc.
## The 'True Nature' of Labor Shortage - 3 Typologies
### Typology 1: Even if hired, they 'quit or don't grow'
'Even if we train 100 people, ultimately only 5 or 6 remain. Even if they grow, they often leave for other companies.'
(Executive of a shipbuilding-related painting business)
In the shipbuilding-related painting business, it takes 4 to 6 years to become fully qualified. Salaries during that period are by no means high, and the reality has become clear that young people who leave immediately after joining the company saying, 'I want a high salary from the beginning' or 'I want to do cleaner work' are endless.
On the other hand, there is also the problem of the cost burden on the company side. One executive in the manufacturing industry says, 'Experienced people do not come to a small company. We manage the business and sales ourselves while training employees who joined with no experience. We have to build more of an organization to aim for the next stage, but we don't have the leeway to train them in the first place.'
Leaving the company just when they finally become useful after spending time on training - the 'lack of retention' problem on the job seeker side is also a 'training costs cannot be recovered' problem on the company side. The labor shortage is becoming more serious as a structural mismatch for both job seekers and companies.
### Typology 2: 'Desire for Stability' and 'Meaning of Work' - The Changing Younger Generation
'The number of employees aiming for independence is almost zero. There are only employees who want to lead a stable life with plenty of their own time. Right now, the discussion of "rights or obligations" inevitably comes first.'
(Board member of a food and beverage chain)
At a food and beverage franchise company that used to have many employees with an independent mindset, a change in the consciousness of young people over the past 30 years was discussed. Changes in attitudes toward work are a voice commonly heard across multiple industries, not just the food and beverage industry.
'For example, they say they want to earn 30 million yen a year. But when I ask them what they want to do with that money, they can't answer...'