Labor Shortages in SMEs and Regional Economic Sustainability: A Regional Policy Perspective

Abstract

Labor shortages among small and medium-sized enterprises (SMEs) that support regional communities have become increasingly severe against the backdrop of a declining birthrate, an aging population, and overall population decline. This paper conducts a structural analysis based on the perspective that this issue is not merely a management problem for individual companies, but a critical regional policy challenge that fundamentally threatens the sustainability of regional economies. By analyzing the current state of talent outflow and the employment structure in regional areas, this study clarifies how indispensable the survival of SMEs is to the maintenance of local communities as a whole. Furthermore, it proposes a paradigm shift in human resource strategy, redefining labor not as a cost but as a form of capital. Through a comprehensive approach that integrates both practical measures and philosophical principles, this paper presents a pathway for rebuilding sustainable regional economies.