This company in central Japan applies plating to components for cars and motorbikes.

It says sales have almost recovered from the pandemic plunge.

But the firm is still hesitant to spend on its future.

"We need to upgrade our equipment."

"But we're waiting because it's not clear that we'll continue getting the orders needed to fund the capital investment."

Caution prevails as the country's overseas earnings weaken.

Japan has seen a trade deficit for 21 months in a row.

It continues to struggle to regain its former strength.

The nation lost its title as the world's second-largest economy to China in 2010, a spot it had held for over 40 years.

It's now on the brink of slipping behind Germany to number 4.

This economist says the situation shows Japan has a fundamental problem.

"China's and India's bigger populations give them a great economic advantage."

"But Germany, which has only two-thirds of Japan's population, is catching up."

"This shows how badly Japan's productivity per capita is plummeting."

Japan and Germany both rely heavily on exports, with automakers leading the sector.

But Kumano says unlike Japan, Germany is successfully adding value to its products.

"Many German cars are recognized internationally as high-end brands."

"The country shifted to making value-added products because competing with emerging countries on price is just not sustainable."

"Japan, which is still trying to boost sales by lowering prices, should follow Germany's lead."

Another economist points to the different situations for the two nations.

"While China is a big neighboring market, it's difficult to make it a strong driver for Japan's growth"

"because of political and national security issues that have complicated the relationship."

"And these will only become bigger."

"On the other hand, Germany has the European Union as a solid market to expand its exports."

And it's not just Germany...

Many emerging economies are also rapidly catching up.

Japan has to find new ways of staying competitive, or risk falling further behind.

Visitors to this shrine on the outskirts of Tokyo are practicing a custom meant to bring them luck

--tossing coins into its offering box.

"When a Japanese person thinks about shrines, this sound comes to mind."

These days, a sign with a QR code is prominently placed nearby.

When scanned with the smartphone app of a major bank, a prompt appears.

Any amount given is transferred from the user's account to the shrine.

A special arrangement with the bank means the amounts can be very small, even the equivalent of a 5-yen coin.

Although it's only worth about 4 cents, it's a common offering that's considered to be good luck.

As cashless payments prevail, the system is useful for people who aren't carrying small change.

But it still has limited appeal.

"It doesn't feel quite right."

"Giving with a QR code... it somehow seems insincere."

We asked the shrine how many people are using the system.

"Honestly, not as many as we thought. But it's important to have options for giving that meet the needs of all visitors."

The shrine's experience lines up with the results of a survey about digital offerings.

Asked whether they want to make cashless offerings, over 60% replied "Probably not" or "Definitely not."

When asked why, 80% gave reasons such as "It doesn't feel like it's coming from the heart"

or "I want to follow the old customs."

With cashless payments only set to become more common,

one temple has installed a system that it hopes can bridge the gap between old and new.

The temple is located in the shopping district of Nagoya City.

In March, it installed a vending machine selling 500 yen tokens.

Visitors can buy them with a variety of cashless payment methods.

They can then use the tokens to make a traditional offering, or just keep it as a souvenir.

"This can help encourage people to come who regularly visit but may not have small change on them."

"I could see this really catching on."

The vending machine can be easily used by foreign tourists.

"I think it's fun. It's also convenient 500 yen is a little expensive, but we came all this way, so we'll use it.”

As technology continues to transform all aspects of our lives,

these digital offerings show that customs can be modernized without being lost.

A job search site made specifically for LGBTQ+ people is helping sexual minorities find workplaces the can feel comfortable in.

And this company found that the key to profitability lies in a diverse workforce.

Today's On-Site Report features businesses focused on promoting equality for sexual minorities in the workplace.

Shimizu Alice now works for a major restaurant chain that has over 600 branches located in Japan and abroad.

Previously, Shimizu worked at a hotel where she was required to wear a men's suit due her assigned gender.

But she wanted to work at a company that didn't have a gender-specific dress code.

"It was difficult to find decent paying jobs with flexible
dress codes that let me express my femininity."

In order to find a job that gave her the freedom she wanted,

Shimizu used Job Rainbow, a job search website designed specifically for sexual minorities.

The site currently boasts 519 registered companies.

Using a variety of search parameters, such as flexibility on hair and clothing choices,

job seekers can search for companies that offer an ideal work environment.

The site now averages about 650,000 active users per month.

Job Rainbow was founded in 2016 by Hoshi Kento.

He was inspired to create the service after a friend from university was turned down for a position

after explaining that she was transgender during a job interview.

"They told her, 'We don't have anyone like you
in our company, so we can't hire you.'"

"I was so angry because the decision had nothing
to do with actual ability."

"That is why I started my company."

"I wanted to give sexual minorities
an equal place to start from."

From the beginning, Job Rainbow has made sure that any companies wishing to be listed on their site

let them conduct a detailed check to see how LGBTQ+ friendly they are.

The 100-point checklist contains a wide range of criteria,

such as whether or not a company has a clear anti-discrimination policy

and whether or not they recognize same-sex relationships.

This check was instituted to prevent users from being matched with companies

that wouldn't be able to provide them with a comfortable environment to work in.

Despite its current success, JobRainbow didn't have a single company register with it within its first 2 years.

Hoshi, who is gay himself, was appalled at the resistance he faced.

"Even major manufacturers with over 100,000 employees
would say "No, we don't have any LGBTQ+ staff here"."

However, things began to change in recent years as municipal governments across Japan

gradually began to recognize same-sex partnerships.

In 2019, Hoshi organized a job fair with about 20 different large companies.

The event received a lot of attention because it allowed job hunters to hear directly from LGBTQ+ employees

who worked at the participating companies.

Events like this have helped Job Rainbow to become the largest job search service for sexual minorities in all of Japan.

Job Rainbow also provides advice to companies.

For example, the restaurant chain where Shimizu works used to use uniforms with different colors for male and female staff.

After consulting with Job Rainbow, however, it stopped that practice.

It also decided to add All-Gender Restrooms.

Over the last 5 years, it has opened 5 new chains, including a BBQ restaurant.

Annual sales have increased by over $2 million and the company believes

that diversity has played a key role in its recent strong performance.

"I think diversity broadens the range of opinions we can
consider when deciding which direction to head in."

"We are fighting to change society and to
set things right for minorities."

"I think this will also be extremely positive
for the Japanese economy."

Ushiba Mayu works as a truck driver for Ohashi Transportation.

She has long identified as pansexual

- someone who can feel attracted to a person regardless of their sex or gender identity.

She has been in a relationship with a transgender person for over 8 years

and says the restaurant where she used to work wasn't accepting of sexual minorities.

"At my last job, I would refer to my partner
as my boyfriend."

"My supervisors would ask things like,
"Why don't you get married?""

"But here, that's not an issue. I even felt comfortable when writing
my partner's name down as my emergency contact."

Ohashi Transportation has been committed to diversity since 2012.

In addition to sexual minorities, the company has also made it a point to hire a range of new employees,

including women and non-Japanese.

The reason for the shift in hiring practice - a major driver shortage had put the company in the red.

President Nabeshima Hiroyuki, believed that the company wouldn't be able to recover

unless it could quickly grow its workforce.

"Small businesses don't attract the same numbers
of applicants as larger companies."

"So, if we want to draw in a wide range of talent,
we need to embrace diversity."

"Here's our company's job application form."

Nabeshima decided to drop the standard practice of asking applicants about gender.

He also changed the company's vacation policy to allow employees in same-sex relationships

to receive paid leave for filing official paper work.

"Although same-sex marriage still aren't legal here, having
a company that recognizes and supports our relationship
really gives me some peace of mind."

Since changing its stance on diversity 10 years ago,

the company has gone from receiving about 40 job applications per year, to over 160.

"Individual people create added value, so it's important
to hire quality employees."

"Having a diverse staff also translates
to having a diverse clientele."

"I think making these changes have really
helped us to grow and improve."

After resolving its driver shortage and returning to profitability,

the company then decided to expand by offering direct business to consumer services in 2014.

One such service is helping clients clear out and dispose of items from vacated or soon to be vacated homes.

On the day we visited, Ushiba was helping empty a house whose owners were leaving to stay in a nursing home.

She's tasked with cleaning out everything from tiny knick-knacks to large pieces of furniture.

"Is it okay to throw away this fan?"

The company's new businesses now account for 30% of its total sales

and have helped it to become more profitable than ever.

"I often work with people who are in
very difficult situations."

"Most clients will say to me, "Thank you,
you were such a help!""

"That's another reason why I love this job!"