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ManpowerGroup Talent Solutions: Global QMR Q3 2023 | 12 Strategic Update on APAC • More than two-thirds of small businesses in Japan are facing labor shortages according to a survey by the Japan Chamber of Commerce and Industry. In the survey conducted in July-August, the proportion of companies that said they did not have enough workers stood at 68%, the highest level since data began in 2015. Of the companies, 57% said that they were in a serious situation that could hinder their operations, and 7% said that they were in a very serious situation that may force them to close their business. The proportion of companies facing labor shortages was highest in the nursing care industry at 86%, followed by the construction industry at 82% and the hotel and restaurant industry at 79%. And while over the past decade Japan has seen more women and elderly people join the workforce while opening its doors to more foreign workers, experts question whether Japan can compete with other nations where workers can get higher pay. • Although India is the most populous country in the world, its labor force continues to lag behind China's. According to Oxford Economics India's labor force participation is only 51%, trailing China by 25%. Although a larger proportion of India's population is of working age, those between the ages of 15 and 64 only make up 51% of the country's labor force, compared to 76% in China. At the same time, female employment in India continues to remain significantly lower than China. While China's female labor force stands at 71%, women make up only 25% of India's workforce. • China has introduced a new legislative amendment revising the Women's Protection Law, which was first introduced in 1991, to address workplace gender discrimination and sexual harassment. The amendment, which took effect on January 1, 2023, increases employers' responsibilities to prevent and address discrimination and harassment in the workplace. Key revisions include the following: ⎻ Prohibition of workplace gender discrimination. The revised law explicitly prohibits specific practices of discrimination against women by employers in the recruitment and hiring process, including banning pregnancy tests during recruitment. The new law prohibits this type of discrimination and provides enhanced protections and support for women to better balance childbirth and career. The law also prohibits employers from reducing female employees' wages and benefits, limiting promotions and rank advancement, or making changes to titles and positions due to circumstances such as marriage, pregnancy, maternity leave, and breastfeeding. ⎻ Sexual harassment prevention and education. The revised law explicitly forbids sexual harassment of women through spoken language, text, images, or physical conduct. Employers are now required to take reasonable measures to prevent, receive complaints about, and investigate incidents of sexual harassment in the workplace. Such measures include establishing comprehensive internal policies, complaint procedures, and employee education and training to raise awareness about and prevent sexual harassment. The revised law also requires employers to protect the privacy of individuals involved in sexual harassment complaints and investigations by keeping confidential the identities of complainants, accused parties, and witnesses. ManpowerGroup Talent Solutions: Global QMR Q3 2023 | 12