[DongleDongle] "Village Bus Drivers Urgently Needed"... Japanese Bus Industry Struggles with Labor Shortage

By 2030, Shortage of 36,000 Drivers
Labor Shortage Due to Low Treatment and Baby Boom Retirement
Measures Include Route Reduction and Introduction of Articulated Buses
Improving Treatment Pointed Out as Fundamental Solution

COVID-19 has brought significant changes to the labor market. Due to the spread of the disease, many workers left their workplaces and have not returned even after the pandemic ended. The vacancies left by these workers remain unfilled, causing many companies to struggle with labor shortages.

Japan's transportation industry is also experiencing severe labor shortages following COVID-19. Recently, Japanese transportation companies have started reducing routes due to a lack of bus drivers, turning the labor shortage in the bus industry into a social issue. Today, we will explore the current state of Japan's transportation industry.

[Image source=Screenshot of Japan Guide homepage]

By 2030, 36,000 Drivers Will Be Short... Annual Salary About 980,000 Yen Less Than Average

The Japan Bus Association forecasts that by 2030, when the majority of the baby boom generation (born 1955?1963) retires, the number of bus drivers will decrease to 93,000. As of last year, the average age of bus drivers in Japan was 53, and the number of drivers is expected to drop significantly within the next 7 to 8 years.

This number is far below the workforce needed by the transportation industry. The Bus Association estimates that if the current routes are maintained by 800 bus companies nationwide, at least 36,000 more drivers will be required.

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Even at present, not in the distant future, the transportation industry is feeling the rapid decline in manpower. The number of drivers needed this year, as set by bus companies, is 121,000, but the actual number of drivers employed is only 111,000, which is 10,000 fewer.

The number of bus drivers has also decreased significantly compared to the past. According to the Hokkaido Bus Association, as of September last year, the number of bus drivers in the prefecture was 5,496, a 32% decrease compared to 1993, 30 years ago.

In this situation, overtime work for drivers will be restricted starting next year, which is expected to worsen the labor shortage. The Japanese government is implementing an overtime work cap system that limits overtime to 80 hours per month to prevent long working hours. Although the construction and transportation industries were previously exempted due to their special circumstances, the transportation industry will be included under the revised regulations starting next year.

The accelerated retirement of drivers due to COVID-19 has contributed to the labor shortage. As citizens refrained from going out due to infection concerns, the number of passengers drastically decreased, reducing the number of trips each driver could make. Japanese bus companies pay drivers a minimum base salary plus incentives based on the number of trips driven. Consequently, bus drivers who could not drive due to fewer passengers chose to retire because of financial difficulties.

Although securing drivers in preparation for the retirement of the baby boom generation is necessary, hiring new employees is not easy. Despite active recruitment efforts by the transportation industry, job seekers avoid applying due to low wages. According to the Nihon Keizai Shimbun, the average annual salary of bus drivers in Japan last year was 3.99 million yen, approximately 36.21 million Korean won, which is 980,000 yen lower than the average salary of Japanese workers.

Bus Industry Lacks 10,000 Essential Workers... Routes Reduced and Operations Suspended

As the labor shortage worsens, its impact is spreading to citizens. Due to a shortage of bus drivers, companies have begun reducing routes. Kongo Jidosha (Kongo Motor Company), operating buses in Dondabayashi City, Osaka Prefecture, announced it will cease bus operations from December 20. Seven bus companies in Hiroshima City also plan to reduce existing bus routes by about 6%.

[Image source=Getty Images Bank]

Companies unwilling to reduce routes are making every effort to find solutions to the labor shortage. Recently, introducing articulated buses (BRT) that can carry more passengers per driver has emerged as an alternative. Articulated buses are two bus units connected as one, resembling a train on wheels.

Kanagawa Prefecture expects a reduction of 300 drivers over three years and plans to maintain current routes by introducing 113-seat articulated buses. Hiroshima City is considering a joint operation system among eight bus companies to eliminate overlapping routes and efficiently organize bus routes.

However, some view these efforts skeptically. The root cause of the labor shortage lies in low wages. In fact, the Mainichi Shimbun reported that young people in their 20s who attended a job fair jointly held by 22 Tokyo bus companies hesitated to apply after hearing about the low wages.

The core issue of the bus driver shortage stems from wages, yet solutions seem to be sought elsewhere. If the perception of low bus driver salaries could be changed, hiring young people would become easier. It does not seem to be only the author’s opinion that riding buses in Japan will become increasingly difficult in the future.