Japanese Workforce and Immigration

The same Washington Post reporter who gave us Jero earlier in the week (Blaine Harden) is reporting on the Japanese labor shortage due to the greying of Japan and a hesitancy to increase immigration to deal with the problem.

Now Japan faces a fundamental threat to its future — demographic decline that experts say will delete 70 percent of its workforce by 2050.  Inside the government, there is growing agreement that Japan can head off disastrous population decline by significantly increasing immigration. Japan has the world’s highest proportion of people older than 65 and the world’s smallest proportion of children younger than 15. Without immigration in substantial numbers, it will soon run perilously low on people of working age.

Yet among highly developed countries, Japan has always ranked near the bottom in the percentage of foreign-born residents. In the United States, about 12 percent are foreign-born; in Japan, just 1.6 percent. Most immigrants here are from Asia or South America. The largest number come from Korea (about 600,000 people), followed by China and Brazil. The Brazilians are mostly of mixed Japanese descent.

Yet there is little or no political will here to persuade or prepare the public to accept a sizable influx of foreigners. “There are people who say that if we accept more immigrants, crime will increase,” Fukuda said. “Any sudden increase in immigrants causing social chaos [and] social unrest is a result that we must avoid by all means.”

There is another way for Japan to slow population decline and maintain its workforce: persuade more Japanese women to marry, have children and remain on the job. The percentage of women who choose to stay single has doubled in the past two decades. When they do marry and have children, they drop out of the workforce at far higher rates than in other wealthy countries. To that end, the government is working on a bill to require companies to offer shorter hours to parents with young children and to stop requiring them to work overtime.

18 Responses to “Japanese Workforce and Immigration”

Raj Said:

Actually the fastest way to stabilise the workforce is to make it easier for the young, old and women to get decent jobs, rather than “reserve” them for salarymen. Also the retirement age needs to be pushed back.

Ensuring families can have more children is a long-term issue – getting more women working is the first step.

Edward Chmura Said:

A-a-a-a-men, Raj.

Raj Said:

Why the hell is it that only the Economist (out of the non-Japanese media) picks up on that point? Everyone else seems to drone on about getting more children born….

RTN Said:

Japanese could also just accept a slow decline in economic power. There are plenty of first world, nice countries with good quality of life that aren’t ranked #1 or #2, or even in the top 10, of economic power houses.

Raj Said:

“Japanese could also just accept a slow decline in economic power. There are plenty of first world, nice countries with good quality of life that aren’t ranked #1 or #2, or even in the top 10, of economic power houses.”

Such nations’ positions are rarely down to declining birth rates. Normally it’s down to poor economic policy, slow court systems, inefficient bureaucracies, or simply because they’re too small to do anything else.

You seem to fail to understand why Japan should be concerned about a shrinking workforce. It isn’t about world ranking as if this is some sort of game – it’s about being able to support those receiving pensions. If the ratio of workers to pensioners gets too low those pensions will be unaffordable. Thus either the retired will have to make ends meet with less or future generations will have to be taxed higher, will then spend less, the economy will slow, unemployment will increase and the spiral will get worse.

zichi Said:

According to some estimates, if the current birth rate continues, the size of the population will be halved by 2050 by which time Japan will need about 50 million foreign workers to support the surviving nation. By the end of this century the Japanese nation will be extinct and Japan will be up for sale.

remora Said:

well,it’s particularly gratifying and reassuring to know that my two sons will either be Undertakers or Geriatric Nurses.

*in my final years they can wash and wipe my backside and then incinerate me*

Heaven here I come!!

remora

Gaijin Said:

It’s important to note that, no matter how vital we may see it as being for the Japanese economy to accept foreign migration, the Japanese people have centuries of bias against any such move. They will accept economic difficulty, they will take the same shogane approach that they do to any hardship in life, but they will never accept someone who has non-Japanese parents or grandparents as Japanese.
I’d get my money the hell out of the country right now, unless I knew someone in the government with the potential for pensioner care contracts, and even then I’d make I had my money out by 2040.

Raj Said:

“By the end of this century the Japanese nation will be extinct and Japan will be up for sale.”

Err, yeah – that’s obviously not going to happen, Zichi. Reliable population estimates indiciate that the population even under current trends would level off at about 100-90 million.

TofuUnion Said:

Soon or later following these three measures will be taken :

To enable women and elderly men to get decent jobs. (Bring up retirement age to 70 years old.)
To improve welfare system to encourage Japanese women to marry and have more children.
To accept more foreign skilled workers.

The question is whether Japan will allow simple immigrations. For the time being, it looks negative.

johan Said:

Gaijin:

“but they will never accept someone who has non-Japanese parents or grandparents as Japanese.”

I’ve heard Brazilian-Japanese immigrants have a pretty difficult time in Japan as well. What gives?

Betty Woo Said:

TofuUnion typed: To improve welfare system to encourage Japanese women to marry and have more children.

Huh. Interesting. I got the impression that women *didn’t* want to get married because:

1) they’re not particularly happy the way a traditional Japanese marriage (doesn’t) work for them (i.e. your duty is as a housewife/mother first and foremost and forever and just wait for the husband to come home),

2) they may realize that if the choice is ‘get a decent job or career that you enjoy very much and stay with it’ vs. ‘get a decent job or career that you enjoy very much and leave it with the first kid because that’s traditional’, they’d prefer to pursue their own goals rather than a baby and the best price for natto at their local shop,

3) younger women are seeing the fallout of divorce amongst their parents’ generation; the women invariably take a tremendous financial fall, their job and career prospects are shortened because they’ve been out of the workforce for so long and that’s not a particularly pleasant thought so why not avoid it as long as possible?

What I find is typical is that the emphasis is on women. Well… what are the *men* going to do to encourage women to take the much greater financial and emotional risks of marriage and having children?

Methinks the men are going to have to undergo some changes and encouragement, too :-)

That may be a lot harder than (male) politicians coming up with some welfare programs.

TofuUnion Said:

Betty, I don’t think the stuffs you drew don’t make sense. Although many Japanese women hesitate to marry or have children (they actually say so) because it’s hard for woman to maintain job carrier after they get married or have babies under present company/social system. Also it’s been getting more and more financially costly to raise a kid. If social welfare improved and much of those obstacles were removed, more women would like to marry and have more children.

RTN Said:

It’s also very difficult for women to reenter the work force after having kids in Japan. You can still find a lot of want ads that specify applicants need to be under a certain age (30 and 35 are common cut offs). I’ve seen this particularly for health care and dental related jobs that are almost entirely done by women (nurse, dental assistant, dental hygienist, etc.).

esotericlarity Said:

Actually the fastest way to stabilize the workforce is to make it easier for the young, old and women to get decent jobs, rather than “reserve” them for salary men. Also the retirement age needs to be pushed back.

Why the hell is it that only the Economist (out of the non-Japanese media) picks up on that point? Everyone else seems to drone on about getting more children born….

my hypothesis is that the cause of this situation is the conjunction of international media firms and reporting on economic issues being done by people who know nothing about economics. when the story is initially reported by sources in tokyo or some international bureau the article is usually very technically oriented and concise. the article is then duplicated by licensed distributors and outlets of the media company (like ap, reuters. bloomberg, etc.) creating a flood of identical information to and amongst firms and individuals throughout the world.

the extensive coverage of the issue from large media outlets and universal sources creates and environment where the smaller media outlets and independents feel they have to also report on the same issue not licensed to reprint the data from other media outlets they generalize the information and reprint the stats for public consumption.

by now you have a general agreement on the facts of the issue at hard, in this case the declining future expected workforce in japan and the coming difficulty in cashflows given the expected pension outflows and high present value of future healthcare obligations. now that the positive economics is out of the way the media tries to generate further interest in the story. most people and either too uninterested/untrained or not intelligent enough to interpret this data for themselves, they want actionable advise on how to respond to the issue at hand.

japan, being the origin of the story and the location where the most interest is generated, will complete this cycle first, although just ahead of the global media representatives (both traditional and web). at this point experts in the fields of economics, public finance, and political science will be called in to offer their opinion or grant an interview. this opinion or interview will be edited down to two sentences in an article, a fifteen second tv clip, or taken wildly out of context by a blogger. while there might be some derivation in the narrative at first, the media forces at play in the first cycle will once again force the narrative to coalesce around a single issue; in this case immigration policy. politicians postulate; reporters rabble rouse, bloggers write, and people that are knowledgeable about the issue are consigned to the closet

the rest of the world goes through the same cycle, but having the Japanese media finish it first, international media outlets use their japanese bureaus as a crutch, editing the already edited material for american and european consumption. by now most if not all alternative or derivative narratives have been thrown out the window and now there is just immigration. this most likely due to the fact that it is an issue to which most global readers can relate to, thus making the predicament more relevant to them.

this now nearly monolithic narrative is further consolidated by the media “research” done. most writers/editorial contributors to media outlets, like their japanese counterparts have very little to no understanding of economics and therefore take the reccomendations given in the translated articles available to them verbatim.

the intellectually honest and vigorous reporters/people amongst this throng will contact a local economist, public policy institute alumnus, or political scientist to expand or confirm the information they are given. but once again this results in an even more broken feedback loop which leads to even less analysis or ideas on the subject.

why?

a few reasons. first the local experts rarely have an expertise in japanese economic/social/political issues and thus can speak in vague generalities about the information available. this would not be a fatal flaw in and of itself if the experts were given time to take more than a cursory view over the statistics; but they generally have tenure obligations to fulfill, expert testimony to be performed, or a private employer for which to work.

this is in conjunction with reporters shaping the interview through leading questions meant to confirm their information rather than to gain new insight. instead of asking the expert for their own view, they ask them how they feel about a preeminent economist at kieo university and his remarks on the matter.

in the end what is delivered is a homogenized storyline with a few insightful editorials and blogs here and there. even those who want to think about the issue are constrained by the facts presented thus in classic newspeak fashion reducing the breadth of thought to a range of opinions directly formed by the media and its own broken feedback mechanisms.

then after this cycle has ended a publication/writer who knows what they are talking about can finally be heard. as the roar of mediocre reporting/analysis dies down, voices of reason can be heard. of course by now the news cycle has moved on and no one is interested so the competing narrative is lost to the general population and left to those who choose to listen.

hope this helps to explain

esotericlarity Said:

coming soon my own refutation to the earlier comment

TofuUnion Said:

A group of 80 ruling party lawmakers have created a plan calling for a huge increase in immigrants. They will let 10 % of Japan be foreigners.

http://search.japantimes.co.jp/rss/nn20080613a2.html

This should be a good news for non-Japanese aiming to live in Japan.

warido Said:

Maybe, but the problem is actually getting something like that through. It could just as easily be used as fodder for opposition; “They want to turn us into a gaijin nation.”

But even in regards to the more conservative leaners’ best interests, they need to do something, because the longer they hold making significant changes back the worse its going to become (and the more significant the change will have to be.)

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