Japan Struggles to Attract Foreign Workers
Japan is facing a growing challenge in attracting foreign workers, despite the increasing demand for labor across various sectors. The country’s ability to lure skilled individuals from abroad has been diminishing, as many choose to work in other nations that offer better pay and opportunities.
According to a director at a Tokyo-based organization that facilitates the arrival of technical interns, the number of Chinese workers coming to Japan has significantly dropped. In 2015, over 38,000 Chinese workers arrived, but by 2023, this number had fallen to around 11,000. This decline highlights a shift in the preferences of foreign workers, who are now turning to countries like Vietnam, Indonesia, and others.
Foreign workers in Japan typically earn between 170,000 to 180,000 yen per month, which is approximately $1,120 to $1,200. After covering housing and insurance costs, their take-home pay is usually around 130,000 to 140,000 yen. Many of these workers send money back to their families, but the amount they can contribute is limited.
The director explained that “not only in China but also in places like Cambodia, smart people can now earn enough money in their home countries. There is no need to come to Japan for work.” This sentiment reflects a broader trend where foreign workers are finding more lucrative opportunities closer to home.
Japan’s economic growth has been relatively stagnant in recent years, and the yen’s weakness further complicates the situation. Even with higher minimum wages, the pay in Japan remains lower than in countries such as Singapore, Taiwan, and South Korea. As a result, many potential workers are opting for destinations that offer better financial incentives.
Some companies have reported a decline in the quality of workers arriving in Japan. The director noted, “There is no reason for talented individuals to come to Japan.” Despite this, Japanese companies continue to seek more workers due to the shortage of young people within the country.
Ryuji Kinoshita, who assists Filipino workers in coming to Japan, mentioned that the perception of Japan as a place where one cannot earn money has spread. He added, “Now, many Filipinos see Japan as just a ‘transit point’ before moving to places like the U.S., Europe, or New Zealand, where wages are higher.”
Kinoshita also pointed out that there will likely be no increase in Chinese workers. He explained that China itself is developing, so there is no advantage to working in Japan. Recently, there has been an increase in workers from Sri Lanka, Nepal, and India. He predicts that the next wave of workers may come from Africa, indicating that the types of foreigners entering Japan will continue to evolve.
Key Trends in Foreign Labor
- Shift in Worker Origins: While China was once a major source of foreign workers, the trend has shifted towards countries like Vietnam, Indonesia, and more recently, Sri Lanka, Nepal, and India.
- Economic Factors: Japan’s weak economy and low wages compared to other countries are significant deterrents for potential workers.
- Perception Issues: The notion that Japan offers limited earning potential has led many to view it as a temporary stop rather than a long-term destination.
- Changing Demographics: As Japan struggles with an aging population and a shrinking workforce, the reliance on foreign labor continues to grow, even as the pool of available workers shrinks.
These developments highlight the complex challenges Japan faces in maintaining a steady influx of foreign workers. As the global labor market evolves, Japan must find new ways to attract and retain talent to support its economic needs.