Japan faces a significant challenge with its human resource shortage, a predicament that spans across various sectors of its economy. This issue is exacerbated by an aging population and a declining birth rate, leading to a shrinking workforce that cannot fully support the needs of its highly developed, technology-driven economy. The repercussions of this shortage are felt across industries, from healthcare to IT, engineering, and beyond, impacting not only domestic companies but also the global market, given Japan’s role as a major economic player.
To combat these challenges, Japan is exploring a variety of innovative solutions aimed at revitalizing its workforce. These include policy reforms to encourage higher birth rates and extend the working age, as well as embracing more inclusive hiring practices to attract women and elderly workers back into the workforce. Additionally, Japan is increasingly turning towards technological solutions, such as automation and AI, to fill the gaps in labor-intensive roles.
Moreover, Japan is opening its doors wider to foreign talent, easing immigration policies to attract skilled workers from abroad. Educational reforms and investments in human capital development are also crucial parts of the strategy to ensure that the workforce remains competitive in the face of rapid technological advancements.
Our team in Japan delves into the depths of Japan’s human resource crisis, examining its root causes, the sectors most affected, and the potential long-term impacts on its economy. We will also explore the various strategies being implemented to address this issue, assessing their effectiveness and the lessons other countries might learn from Japan’s experience in tackling one of the most pressing challenges of our time.
Insufficient labor supply
Japan’s workforce is in short supply: it needs 70.73 million workers, but only has a supply of 64.29 million. Furthermore, Japan is an aging society with a low birthrate, and even though the workforce is still small, the elderly are expected to make up the majority of the population by 2055. Japan’s labor situation is undoubtedly in crisis.
Strong demand for foreign workers
How can we solve this problem? One possible solution is to increase the population or replace human jobs with AI, but the most reliable and immediate solution is to utilize foreign nationals. According to the Immigration Services Agency, the number of foreigners living in Japan will reach 3.22 million by 2024, symbolizing the demand for foreigners that increases every year. The majority of these foreigners are qualified to work, making up for the labor shortage.
Government is in favor of immigration
In addition, the government seems to be welcoming foreigners as workers, as it continues to relax residency and working conditions for foreigners. Examples include the establishment of foreign employment centers and support for foreign employers, the promotion of the acceptance of highly skilled workers, and the simplification of the immigration system. They even provide support systems for hiring foreigners and helping them learn the Japanese language.
Advantages of foreign workers
Hiring foreigners brings great benefits to companies. For example, Japanese giants such as Fast Retailing and Rakuten have made English their official internal language because they want to hire foreigners. As a result, they have been able to attract excellent foreign talent and gain a huge advantage in international competition and overseas expansion. In recent years, companies with diversity that incorporate foreigners have made remarkable strides over companies that are solely Japanese.
Bossjob tackles Japan’s labor problem
Due to the shortage of workers and the government’s encouragement, the trend to actively hire foreigners will continue to grow. The good news for companies looking to hire foreigners is the launch of Bossjob’s service in Japan. Bossjob is a global recruiting platform that already has 3 million registered foreigners, and with full AI support, it is easy to match the right person with the right job. By connecting job seekers and employers in a fraction of the time, Bossjob is a hiring solution perfectly positioned to address Japan’s labor problems.
