Japanese Companies Increasingly Relocating from Tokyo to Rural Areas
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Japanese companies are increasingly leaving Tokyo for rural areas, with 335 relocating in 2021. The trend accelerated during the pandemic as remote work boomed.
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The decentralization of corporate Japan has been a long-standing government goal, hoping to disperse jobs and tax revenue. Authorities offer incentives to encourage moves.
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Natural disaster risk is another factor, with a high probability of a major Tokyo quake in coming decades. Some firms want to distribute staff and resources.
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Challenges remain, including work culture valuing in-person meetings. Many employees prefer city conveniences and schools.
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Growth centers are emerging, but Tokyo still dominates. Better regional differentiation is needed rather than just scattering firms.