Labour crunch sends Japan restaurant pay to record high

Labour crunch sends Japan restaurant pay to record high

With the reintroduction of nightlife, competition for kitchen staff and servers intensifies.

The restaurant industry’s reopening preparations are being hampered by a worker shortage. (AP pic)
TOKYO:
Japan’s economic reopening has driven restaurants offering new part-time hires the most generous wages on record, as the latest industry figures show.

Part-time food service workers in the Tokyo, Osaka and Nagoya areas earned an average of ¥1,050 (US$9.21) an hour in October, staffing group Recruit Holdings reported Monday. The number is up 2.4% from a year earlier, besting the pre-Covid high recorded in November 2019.

Competition for kitchen staff and servers has intensified since Japan lifted pandemic restrictions in September on how late restaurants can stay open and whether they can serve alcohol.

A newly opened pub in Kanagawa Prefecture near Tokyo offered new hires ¥1,100 an hour when the location first started business.

“At first we tried ¥1,041, but we raised it after finding out that other businesses were offering ¥1,050,” said a representative from restaurant group Natty Swanky, which operates the Dandadan Sakaba chain known for serving gyoza dumplings.

Sanko Marketing Foods, another izakaya pub operator, has started paying bonuses of ¥10,000 to ¥20,000 to former part-timers who return to the company or refer friends.

The labour crunch is cramping the dining industry’s reopening plans. Izakaya chain Yoronotaki has decided to suspend late-night operations at some locations for the time being.

“We’ve been trying to recruit part-time workers since before the emergency declaration was lifted, but we’re not getting much of a response,” said Masatoshi Tanisake, a director at Yoronotaki.

Average part-time wages overall rose to ¥1,103 in October, according to Recruit, hitting a record for the second straight month. Last month’s figure climbed 1.4% from a year earlier, thanks in part to a minimum wage hike.

Labour shortages are also acute in the logistics and nursing care industries.

An Amazon Japan fulfilment centre near Tokyo in Chiba Prefecture is offering contract employees ¥1,200 per hour. That rate tops the ¥1,168 average for all logistics workers in the Tokyo area, according to Recruit.

Japan last week eased its coronavirus entry ban, reopening its borders to foreign students and workers for the first time in months. But it will likely take time before this makes a significant difference in the job market.

“Schools and companies expect most foreign students to start arriving around February to April of 2022,” said a representative at Will Group, which helps match foreign workers with jobs.

There is concern that the labour shortage at restaurants and bars will only worsen during the busy year-end holiday season.

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