{"id":58317,"date":"2026-02-20T08:00:29","date_gmt":"2026-02-19T23:00:29","guid":{"rendered":"https:\/\/norimen.net\/?p=58317"},"modified":"2026-05-16T18:33:31","modified_gmt":"2026-05-16T09:33:31","slug":"public-works-labor-rates-see-slight-increase","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/public-works-labor-rate-small-rise\/","title":{"rendered":"The labor unit rates for public works design have been announced, but to be honest, it\u2019s just a slight increase! What\u2019s going to happen to the construction industry!?"},"content":{"rendered":"

Hello, everyone.<\/p>\n

This is Enta.<\/p>\n

The Ministry of Land, Infrastructure, Transport and Tourism has announced the labor unit rates for public works design for the Reiwa 8 fiscal year.<\/p>\n

Press Release<\/a>(PDF format)<\/p>\n

 <\/p>\n

Average Across All Job CategoriesUp 4.5%<\/strong>... This is the first time the daily rate has been set at25,834 yen<\/strong>...was surpassed.<\/p>\n

This marks the 14th consecutive year of increases.<\/p>\n

When I saw this, to be honest, I thought, \u201c4.5%, huh\u2026\u201d lol<\/p>\n

It's kind of a fine line between whether to be happy or sad, isn't it?<\/p>\n

\"Labor<\/p>\n

As a country, we\u2019d really like to highlight the fact that we\u2019ve been growing for 14 consecutive years, wouldn\u2019t we?<\/p>\n

The slope construction project (Aichi) is 34,000 \u2192 34,600 yen.<\/p>\n

A tiny increase of 1.8%... (What's this...?)<\/p>\n

\n

4.51 TP3T increase\u2014what do you really think about that?<\/h2>\n

First, let's go over the numbers.<\/p>\n

In the previous fiscal year, Reiwa 7,6.01 TP3T Increase<\/strong>That was it.<\/p>\n

The 2025 labor cost rates have been announced! Let\u2019s make sure to raise our construction rates accordingly!<\/a><\/p>\n

This year, however, that figure fell to an increase of 4.51 TP3T.<\/p>\n

To be honest,The growth rate is slowing down, isn't it?<\/strong>\u3002<\/p>\n

Speaking of prices, the Consumer Price Index for 2024 has been hovering around 3% year-over-year, but<\/p>\n

Construction materials have been used in the civil engineering sector since 2021An increase of approximately 411 TP3T or more<\/strong><\/span>This situation continues.<\/p>\n

 <\/p>\n

According to data from the Japan Construction Industry Federation, the construction materials price index for the civil engineering sector rose by approximately 411 TP3T compared to January 2021 (as of December 2025).<\/em><\/strong><\/span>
\nFuel and equipment costs remain high, and on-site costs continue to rise across the board.<\/em><\/strong><\/span><\/p>\n

 <\/p>\n

With food prices and utility bills continuing to rise, the cost of living for skilled workers on the job site is naturally increasing as well.<\/p>\n

Given that, to what extent will the 4.51 TP3T increase in labor rates have an impact?<\/p>\n

To be honest, the reality is that we haven't caught up yet.<\/strong>I think so.<\/p>\n

\"2026<\/p>\n

\n

So, will bankruptcies increase?<\/h2>\n

It's going to increase. (There's no doubt this year will be a tough one too, right!?)<\/p>\n

The reason is simple:Although the cost structure has changed, the unit price per order has not kept pace.<\/strong>From.<\/p>\n

Construction materials have risen by 411 TP3T or more, fuel costs remain high (though they did drop quite a bit under the Takashi administration), and machinery costs have skyrocketed.<\/p>\n

Given all of that, how many companies will actually be saved by the increase in the labor rate to 4.51 TP3T?<\/p>\n

Even if the Ministry of Land, Infrastructure, Transport and Tourism were to approve design changes due to rising material costs, would prefectures, cities, and municipalities readily approve them?<\/p>\n

 <\/p>\n

In industries like the slope stabilization sector, where small and micro-enterprises make up the vast majority, it is almostLabor Costs!<\/strong><\/p>\n

In a situation where there\u2019s nothing left to cut back on, if the unit price per order doesn\u2019t go up,Only companies with the resilience to survive will make it.<\/strong>It's as simple as that.<\/p>\n

Large companies have the advantage of economies of scale. But what about slope-construction firms with 5 to 20 employees? What will happen to small and medium-sized contractor firms?<\/p>\n

The difference in stamina is just insane.<\/p>\n

\"Construction\"<\/p>\n

\n

So what should we do?<\/h2>\n

It's easy to just vent and call it a day.<\/p>\n

\"Unit prices aren't going up,\" \"Prices are rising too much,\" \"It's the government's fault,\" \"The big companies' unit prices are too low.\"<\/p>\n

They're all right lol<\/p>\n

But it's also true that complaining won't change anything.<\/p>\n

If there's one thing I can say, it's that,Don't Give Up on Negotiating the Unit Price for Orders<\/strong>That's the point.<\/p>\n

Are you just accepting the price quoted by the general contractor without question?<\/p>\n

Are you able to say, \u201cWe can\u2019t do it at this price\u201d?<\/p>\n

Companies that can't say this will be the first to struggle.<\/p>\n

Rather than the fear of saying no,The fear that accepting work at low prices will bring the company to a standstill<\/strong>That one is way bigger...<\/p>\n

We must put an end to the era of cutting employees' salaries just to keep operations running.<\/p>\n

Unit prices are meant to be negotiated. You shouldn't just accept them without saying anything.<\/strong><\/p>\n

 <\/p>\n

Construction companies that rely heavily on major contractors and simply carry out the projects assigned to them don\u2019t even negotiate unit prices, do they?<\/p>\n

(Violation of the Construction Industry Act)<\/p>\n

It\u2019s also risky for major companies to simply send contractors documents\u2014such as order acknowledgments\u2014that are just there to get them to sign off on quotes prepared by the major companies themselves.<\/p>\n

Well, it\u2019s true that there are some contractors who can\u2019t even do that, though...<\/p>\n

This is a really difficult issue, but,<\/p>\n

As mentioned in the recent article, it seems the only way forward is for major companies to acquire these firms and bring their operations in-house.<\/p>\n

What does the future hold for the slope construction company? Will it buy another company? Will it be acquired? Or will it be absorbed?<\/a><\/p>\n

\"Instruction\"<\/p>\n

\n

Rather than debating whether the figure of a 4.51 TP3T increase is \u201cgood or bad,\u201d<\/p>\n

Accurately understanding what lies behind these numbers<\/strong>That's more important.<\/p>\n

If you just celebrate every time the numbers go up, you\u2019ll find yourself left behind before you know it.<\/p>\n

Numbers are just a form of information.<\/p>\n

How we interpret that and how we respond will shape the company's future.<\/p>\n

We live in an era where those who use information as a weapon and keep moving forward are the ones who survive.<\/strong><\/p>\n

Our only way to survive is to raise our unit prices, but conversely, these are tough times for general contractors, too!<\/p>\n

I think it\u2019s time to consider how we can survive alongside our prime contractor.<\/p>\n

Is it a major company? Or a local business? ...<\/p>\n

I really feel like we've reached a difficult juncture.<\/p>\n

All that's left is to hope they'll really ramp up our orders (I'm seriously counting on it!)<\/p>\n

 <\/p>\n

See you later.<\/p>","protected":false},"excerpt":{"rendered":"

Hello, everyone. This is Enta. The Ministry of Land, Infrastructure, Transport and Tourism has announced the labor unit rates for public works design for the Reiwa 8 fiscal year. Press Release (PDF) The average rate across all job categories increased by 4.5%, with the daily rate exceeding 25,834 yen for the first time. This marks the 14th consecutive year of increases. When I saw this\u2026<\/p>","protected":false},"author":2,"featured_media":58448,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[751,752,753,14121,14205],"class_list":["post-58317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-751","tag-752","tag-753","tag-14121","tag-14205"],"acf":[],"yoast_head":"\n\u52b4\u52d9\u8cbb\u5358\u4fa1\u30004.5\uff05\u5fae\u5897\u3000\u5206\u6790\u3068\u8003\u5bdf - \u65b0\u30a8\u30f3\u30bf\u306e\u6cd5\u9762\u7ba1\u7406\u587e<\/title>\n<meta name=\"description\" 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