Abstract
Recent indicators of area growth such as population, office vacancy rates, and land prices suggest that the regional economy in Sapporo has improved. However, the indicators do not necessarily reflect long-term changes to the Sapporo economy. While the shift in employment from branch office workers to IT-related workers is significant, this shift is unstable. The increase in IT-related workers has occurred due to an increase in the number of "call centre operators" (customer service telephone operation centres). The increase in the number of IT-related workers, which include "call centre operators, " is related to a rapid increase in temporary jobs. For example, a big "call centre office" supporting a Tokyo company occupies several floors of the JR Tower, which is the most prestigious building in the CBD of Sapporo. The relocation decision was driven by the availability of less expensive office space and lower labour costs relative to Tokyo. The lower labour costs are sustained by an influx of labour from the rural communities throughout Hokkaido. Consequently, the present growth rate in Sapporo may not be sustainable in the long-term because Sapporo's growth is occurring at the cost of declining economies in rural Hokkaido.
