Paper Title
Human Resource Strategies of Japanese Firms Amid Labor Shortages

Abstract
Many Japanese companies reported favourable financial results for 2024, with the combined net profits of 1,072 listed firms reaching a record high for the fourth consecutive year. This was driven by increased profits in the manufacturing sector, stemming from expanded earnings in export industries due to the weak yen and rising demand for semiconductors. In stark contrast to this improvement in corporate performance, the shrinking working-age population has exacerbated the labour shortage, with some companies even going bankrupt due to staffing constraints. To address this nationwide issue, it is necessary to raise the current retirement age and further promote diversity management, including the employment of foreign nationals and people with disabilities. However, many companies remain reluctant to implement such measures. Based on survey data and statistical significance testing, this study demonstrates that, amid labour shortages, initiatives such as leveraging diverse talent, enhancing welfare benefits—including increasing telework adoption—and abolishing the mandatory retirement age contribute to improved corporate performance in Japanese firms. Keywords - JapaneseCompany,Labor Shortage, Human Resource Management Strategy.Telework, Mandatory Retirement Age.