Monthly Labour Survey – Results for Fiscal Year 2025 (Reiwa 7)

Key News Points

The final results of the Monthly Labour Survey for fiscal year 2025 suggest that while average wages in the medical and welfare sector are trending upwards year-on-year, the rate of increase may be limited compared to other industries. This highlights the difficulty medical institutions face in securing and retaining staff amidst rising labor costs that strain management.

M&A Medical Editorial Perspective

The results of the Monthly Labour Survey provide an opportunity for healthcare facility managers to re-examine their direct cost structure, particularly labor costs. The fact that wage growth in the medical and welfare sector is lagging behind other industries suggests a risk of losing talented personnel. Under these circumstances, it is inferred that for regional and smaller medical institutions in particular, the inability to continue operations due to a lack of successors is increasingly becoming a challenge not just of succession, but also of operational continuity due to labor shortages. Third-party succession through M&A should be re-evaluated not merely as a transfer of management rights, but as a more strategic option from the perspective of maintaining employee employment and continuing regional healthcare services. In particular, for the succession of community-based medical institutions, such as those supported by M&A Medical, care for employees is a critical factor determining the success or failure of the succession.

Points Raised by This News

• The possibility that wage growth in the medical and welfare sector is limited compared to other industries.
• The risk that rising labor costs will put pressure on the management of regional and small-scale medical institutions.
• The possibility that a lack of successors is exacerbating the difficulty of business continuity due to labor shortages.
• Third-party succession can be a strategic option from the perspective of maintaining employment and continuing regional healthcare.

Practical Questions Arising from This News

• Given these wage trends, is our institution’s labor cost structure appropriate?
• What is the extent of the risk of talent outflow to neighboring competing medical institutions or other industries?
• What are the specific schemes for proceeding with business succession while maintaining employee employment?

If You Feel “Should I Consult?”

If you are concerned about whether your institution’s labor cost structure is competitive compared to neighboring medical institutions or other industries, and whether it can cope with future wage increases and labor shortages, third-party succession through M&A may be a viable option. Please consult with experts on concrete methods for building a new management system while protecting the values your institution cherishes, such as maintaining employee employment and continuing regional healthcare.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics with a full success fee basis, as a certified M&A support institution by the Small and Medium Enterprise Agency. Consultations are accepted with strict confidentiality. Free consultation here.