Macroeconomic & Geopolitical

Software Investment & Job Growth in Japan

December 2020 – 2 min read
COVID-19 has adversely affected overall business fixed investment in Japan, with all industries as a whole expecting the declining trend of business investment for 2020, according to a September Bank of Japan Tankan survey.
  • Amid declining business investment in 2020, software investment remains a bright spot.
  • Changes to face-to-face contact protocols because of COVID are driving labor-saving investments.
  • Large companies in Japan tend to avoid laying off regular employees, opting instead to reduce the fixed costs through attrition, a hiring freeze or eliminating part-time jobs.
     

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Manabu Tamaru, CFA

Member, Fixed Income - Global Team

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