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    Japan
     May 3, 2005
Old Japan, new labor
By Suvendrini Kakuchi

TOKYO - It can be seen as an International Labor Day bonus for those trying to seek their fortunes in Japan. Since May 1, Tokyo has become less fussy with unskilled foreign workers and has started opening its labor market doors to them to ward off a looming demographic crisis.

The harsh reality confronting Japan's planners is a rapidly aging population and fast-dwindling local workforce. According to the United Nations, Japan's population will decline from 127 million in 2004 to 109 million in 2050. In effect, a smaller working population will have to support a larger group of pensioners.

"With Japan's labor force expected to decrease by 10% in the next 25 years, the economic outlook is far from bright," said Julian Chapple, a lecturer with Kyoto Sangyo University. "In all likelihood, the domestic market will shrink, production will fall, the government's revenue base will contract inexorably and it will struggle to meet welfare and medical payments for an increasing number of elderly as the dependency ratio (the number of workers supporting the elderly) will shift dramatically," Chapple wrote in a recent report for the Electronic Journal of Contemporary Japanese Studies.

Studies indicate that in 1950, one elderly person was supported by 12 members of the working population, by 1990 it was 5.5 workers, and by 2020 it is estimated to be 2.3 workers. "Naturally the government is concerned about such a scenario," wrote the lecturer. "The question now is, how can Japan ease this predicted slide, maintain its population and thereby ensure economic security and continued prosperity?"

In early April, the Japanese government unveiled a new immigration plan following a report prepared by Japan's Justice Ministry asking the cabinet to "firmly consider" bringing in unskilled foreign workers. "After years of trying to ignore the problem, Japan has finally realized the important role of migrants in providing cheap labor and stimulating the local economy," said Katsunori Yoshinari, head of the Asia People's Friendship Association, a non-governmental organization.

The new policy represents a shift for Japan, which has, till now, refused to allow unskilled foreign labor into the country. It has even been lukewarm about letting in more skilled workers. "The program is in response to Japanese companies that want the government to consider accepting migrant workers," said Shoichiro Okabe, an official at the Justice Ministry. He explained the new policy would focus on relaxed immigration controls accompanied by new conditions when accepting unskilled labor such as placing priority on Japanese language skills.

Farm, fisheries and forestry sectors are expected to be the main beneficiaries of the new policy, which will be effective for five years starting May. A decision on which other sectors would be allowed to invite foreign unskilled workers is expected soon. Experts point out Japan's tightly controlled immigration policy has long ensured the homogeneity of Japanese society. But such a stance has taken a severe beating recently given domestic labor problems.

"Prying open Japan to foreigners is not an easy task given the deep-rooted suspicion of outside influences. Against such a background, indications from the government itself to open up its doors shows important changes," said Asia Peoples Friendship Association's Yoshinari. Indeed, several small towns and cities in Japan, faced with labor crunches, have already started studying programs to accept foreign workers.

Kimio Matsudaira, an official at Hello Work, a public labor office in the city of Ota, in Gumma prefecture near Tokyo, said there is now a special program to help and support foreigners working in the area. Ota has a population of about 200,000 people. The irony is that more than 60% of its people are over 60, in a city where the economy is dependent on manufacturing. Without doubt, Ota needs foreign workers badly.

To support the city's automobile and electronic industries, Ota now hosts more than 30,000 Japanese Latin Americans, descendants of Japanese who emigrated to South America in the early 20th century seeking a better future. In the late eighties, Japan launched a policy of accepting third- and fourth-generation Japanese Latin Americans to support a labor shortage in its factories stemming from the bubble economy at that time.

More recently, Asians, mostly from Southeast Asia, have also arrived to work in factories, comprising a total of 45,000 registered workers in Ota. Matsudaira said foreign workers are vital to the survival of Ota's economy. "In order to have a smooth process of accepting foreigners, we provide support services such as language classes, driving lessons, private housing and counseling. The system works very well."

Hiroaki Watanabe, an expert at the Japan Labor Research Institute, a private think-tank, said the latest move to accept unskilled migrant labor, in contrast to skilled foreigners, must be accompanied by such support services. "Moreover, it is important to start with accepting small numbers of unskilled workers to minimize social problems in a closed domestic society that is not ready for foreigners."

But public opinion is sharply divided on foreign workers. A survey last year asked people how they would feel about a foreigner taking a job which no Japanese wanted. Some 33% rejected the idea, 31% had no objections and 29% would support it if there were no other option, with the rest having no opinion or undecided. Polls also show more Japanese fear foreigners as a source of crime. Figures for 2004 show serious crimes fell by 4.4% year on year, but crimes by foreigners - while accounting for a minority of incidents - shot up by 16%.

(Inter Press Service)


Grey hairs over aging Asia (Apr 28, '05)

Ginseng for graying Asia (Nov 4, '04)

Japan's employment paradox (Nov 21, '03)

 
 

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