Research on Japan’s Labor Shortage

It is well known that Japan’s population decline has led to a severe national labor shortage. My research projects conducted at the Hashimoto Foundation focus (among other things) on exploring the extent and nature of the labor shortage, as well as on the utilization of global human resources as a solution to the local workforce deficit. My recently written article consists of an assessment of Japan’s current labor migration policies, in particular the Specified Skilled Worker (SSW) labor migration program. In April 2019, the Japanese government officially introduced the SSW program. It was developed as the unofficial successor of the Technical Intern Training Program (TITP), which until today, has been commonly used by Japanese companies to hire foreign low-skilled workers. Yet, after four years, the official data reveal that the SSW labor migration program has fallen far short of its expectations. The new program was able to recruit only a fraction of the applicants that the government was expecting. A closer look at the SSW and TITP shows that they are plagued by the same problems; labor law and human rights violations. This is not only bad for Japan’s reputation of being a ‘foreigner-friendly’ state, but also for the country’s national economy, which relies increasingly on global human resources to maintain its stability. An examination of the framework of the SSW program reveals three deficits in particular. First of all, the application requirements for the Specified Skilled Worker visa are very high, which reduces the applicant pool by a considerable margin. Second, little effort is made by the government to support the integration of labor migrants. As a result, foreign workers do not manage to integrate into the host-society, which often indirectly forces them to return home. In other words, the local labor market loses manpower. Last but not least, the framework of the SSW program is designed according to a classic short-term labor migration program. While in theory it is possible for foreign professionals to obtain permanent residency, in reality the pathway towards long-term settlement often remains blocked. Yet, relying on short-term labor migrants will not solve the severe labor shortage in Japan. Under the present circumstances, it is only a matter of time until the Japanese people’s quality of life will begin to deteriorate. However, a reformation of the SSW program in terms of accessibility, integrability and sustainability could mitigate the domestic labor shortage and therefore contribute to revitalize the Japanese economy and society.

Another research project which is currently being conducted, deals with the question of how Japanese companies themselves experience the current labor shortage. Accurate data on the work force deficit are only available to a limited extent. In particular, the scope and nature of the national labor shortage remains a matter of speculation. Currently, a survey is being conducted among Japanese companies to provide accurate insights into the corporate perceptions of the labor shortage and the utilization of global human resources as a solution. Ultimately, my research aims to collect more labor data and propose reforms to improve the Japanese economy and thereby improve the overall quality of life in Japanese society.

論文：International Journal of Social Science & Economic Research
https://ijsser.org/more2024.php?id=1

研究員：Niklas Holzapfel