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- Preliminary Report of 2022 Basic Survey of Japanese Business Structure and Activities
Preliminary Report of 2022 Basic Survey of Japanese Business Structure and Activities
January 30, 2023
The Ministry of Economy, Trade and Industry (METI) has been conducting a survey titled the METI Basic Survey of Japanese Business Structure and Activities with the aim of clarifying how the management strategies of Japanese enterprises and industrial structures actually evolve, and gathering basic data to support administrative measures.
The following is a summarized preliminary report of the 2022 survey based on actual results from FY2021.*
The following key points were revealed from a total of 25,905 enterprises that responded to the survey both this year and the previous one (hereinafter referred to as "continued enterprises") and were categorized in target sectors for the survey:
- Sales per company increased by 5.2% on a year-on-year basis
- Ordinary profit per company increased by 36.4% on a year-on-year basis
- The ratio of ordinary profit to sales per company increased by 1.5 percentage
points on a year-on-year basis - Value added increased by 7.6% on a year-on-year basis due to an
increase in operating profits and other factors - The labor share ratio decreased by 2.6 percentage points on a year-on-year basis, owing to an
increase in the total payroll falling below an increase in value added - Labor productivity increased by 5.8% on a year-on-year basis, owing to an increase in
value added exceeding an increase in the number of regular employees
under the common directory at the same time. Please note that due to the change in the survey method, simple comparisons cannot be made between the latest results and those of past surveys (See "Notes for using the data" for details). In the
materials released for 2022 (including the main text and overview), year-on-year comparisons are relative to the continued enterprises.
Summary of the results
1. Sales and profit conditions of continued enterprises
- Sales per company increased by 5.2% on a year-on-year basis.
Looking at the major sectors on a year-on-year basis, sales were up by 8.8% in the manufacturing sector, 3.4% in the wholesale sector, and 1.8% in the retail sector. - Ordinary profit per company increased by 36.4% on a year-on-year basis.
Looking at the major sectors on a year-on-year basis, profit was up by 46.6% in the manufacturing sector, 39.7% in the wholesale sector, and 10.3% in the retail sector. - The ratio of ordinary profit to sales increased by 1.5 percentage points on a year-on-year basis.
Looking at the major sectors on a year-on-year basis, the ratio was up by 2.4 percentage points in the manufacturing sector, 1.2 percentage points in the wholesale sector, and 0.3 percentage points in the retail sector.
2. State of value added of continued enterprises
Value added increased by 7.6% on a year-on-year basis despite a decrease in welfare expenses, due to an increase in operating profits.
Looking at the major sectors on a year-on-year basis, value added was up by 11.9% in the manufacturing sector, 9.5% in the wholesale sector, and 3.5% in the retail sector.
3. State of the labor share ratio and labor productivity of continued enterprises
- The labor share ratio (ratio of personnel expenses to value added) decreased by 2.6 percentage points on a year-on-year basis, owing to an increase in the total payroll falling below an increase in value added.
Looking at the major sectors on a year-on-year basis, the labor share ratio was down by 4.4 percentage points in the manufacturing sector and 3.3 percentage points in the wholesale sector, and up by 0.2 percentage points in the retail sector.Note: The term "labor share ratio" refers to an indicator showing the ratio of personnel expenses to value added, which explains how much of the value that a company has newly created has been allocated to the personnel expenses. The ratios herein were the results derived from the following formula: Labor share ratio = total payroll ÷ value added x 100 - The labor productivity (value added per regular employee) increased by 5.8% on a year-on-year basis, owing to an increase in value added exceeding an increase in the number of regular employees.
Looking at the major sectors on a year-on-year basis, the labor productivity was up by 10.5% in the manufacturing sector, 9.1% in the wholesale sector, and 2.0% in the retail sector.Note: The term "labor productivity" refers to an indicator used in productivity analysis, representing the value added per employee. The productivities herein were the results derived from the following formula:
Labor productivity = value added ÷ the number of regular employees
Overview of the METI Basic Survey of Japanese Business Structure and Activities
(1) Purpose
The survey aims to clarify the current situation of Japanese enterprises' activities and gather basic data on measures related to them.
(2) Date and period of survey
The number of enterprises, the amount of capital or investment, the business organizations and the number of employees are as of June 1, 2022. The other items are taken from the most recent accounting period (for the entire fiscal period of a year or at the end of it).
(3) Targets of the survey
1. Companies with a workplace that falls under any of the following categories:
Mining, manufacturing, electricity and gas, information services, wholesale and retail, credit card and installment finance, leasing of goods (excluding rental), scientific research, professional and technical services, eating and drinking services, living-related and personal services, others (see Appendix)
2. Companies with 50 or more employees and capital (or investment) of 30 million yen or more
(4) Number of companies targeted for the survey (as of the preliminary report of the 2022 survey)
44,813 (number of companies that responded: 40,317; response rate: 90.0%)