Japan's Service Industries to Grow 6% in Income This Year

According to the research of Nihon Keizai Shimbun with business conditions survey, the service industry has increased annually profit by 6% compared to the figure of last year.

Childcare services, elderly caring services and welfare services have improved and this is the main reason of the increase in the profit figure. The increase in a number of aged people and woman with jobs encouraged this too. The Japanese government is promoting a better environment for a woman to be at workplace even by supporting childcare and elderly care services as well. 

In 2014, the research produced the result of the decrease in profit made by service industry when it was compared with the previous year. This year, the rate went up and service industry is back on a truck on improving.

This is the 33rd time of this survey and received answers from 997 companies from 33 different business industries.  

Out of these 33 different business industries, 30 industries have increased income compared to the last year. Pachinko which are Japanese gambling slot machines industry, aesthetic are the only industries that the income decreased from the previous year.

One of the most well performing and developing industry is the childcare services. The figure created for 2015 is 16.1 % greater than 2014. More than 20 thousand children can not go to kindergartens as working parent wants to make sure that their children will go to a facility where they can trust and give peace to their minds. This encourages the industry to keep developing especially in Tokyo and major cities. There were 6.3 % raise in elderly care services, 7.9 % raise in welfare service too.

Many of these companies in service industries are confident that the profit will keep on raising even next year. Questions in the survey proved this as well.

In April 2017, the consumption tax will be raised by 2 %. Then companies were asked about influence for their income, 27.3 % answered that they expect the income to be the same. 42.8% of companies are going to increase the price of the services according to the tax raise.