10/11/2018 Foreigners could ease Japan's labor shortage, but Tokyo prefers robots

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Foreigners could ease Japan's

labor shortage, but Tokyo
prefers robots
The world's third-largest economy must cope with an acute labor shortage and a
declining population.
But the government remains resistant to reforming immigration, beyond
accepting skilled professionals, amid fears of disruptions to social order.
The country received nearly 20,000 applications from asylum seekers last year
but accepted only 20.

Nyshka Chandran | @nyshkac

Published 12:52 AM ET Fri, 9 March 2018 | Updated 7:15 PM ET Thu, 15 March 2018


Japan'sshrinking population has triggered the country's worst labor
crunch in a quarter of a century. With a job-to-applicant ratio at

levels unseen since the mid-1970s, economists have long

recommended to Prime Minister Shinzo Abe that he loosen the
country's strict immigration rules.

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Foreign visitors take a selfie in front of the UNESCO World Heritage site Himeji Castle in Himeji,
Japan

But a deep-seated emphasis on cultural homogeneity means Tokyo SPONSORED BY

prefers artificial intelligence over permanent foreigners for vacant

positions.
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The world's third-largest economy is rapidly aging, on the back of
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10/11/2018 Foreigners could ease Japan's labor shortage, but Tokyo prefers robots

immigration to make up for labor shortages, amid fears that 15 Foods That Are Good For Your Heart
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newcomers could disrupt social order.

Instead, the administration wants to use information technology, Flight Prices You're Not Allowed To See!
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artificial intelligence, and female and elderly workers to deal with
the labor shortage.
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But experts are wary of that strategy: "Although automation can Ticket
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mitigate the declining population, larger immigration will be the
solution," said Kohei Iwahara, economist at Natixis Japan Securities.
by Taboola

Foreign workers wanted — but not permanently Here's how much

money the top 1
Japan wants migrants, not immigrants, explained Stephen Nagy, percent have in
associate professor at Tokyo-based International Christian savings
University and distinguished fellow at the Asia Pacific Foundation of Here's how much
Canada. money you have to
save every month to
retire with $2 million
Fork over passwords or
pay the price, New
Zealand tells travelers 
Temporary workers are needed for low-end service sector jobs, Made in China: Here
manufacturing, old age care and other areas hit by labor shortages, are the cars at risk of
but Tokyo doesn't want those workers to become permanent. being pulled from US
market in Trump trade
"Policy makers have studied Germany's guest workers program and war
came to the conclusion that temporary migrants are a more rational Listen to the IMF's new
migration strategy to maintain social stability and a consolidated warning, economist
says, and cut your
identity," Nagy explained. "They also feel it prevents or minimizes
exposure to US stocks
the anti-migrant problems and violence seen in Europe and other
A rare and worrisome
countries."
thing happened during
Wednesday's stock
"There is concern that Japan could face social problems and rising
market slaughter:
crime if it welcomes large unassimilated communities of foreign bonds fell too
workers," echoed Jeff Kingston, director of Asian studies at Temple
University Japan. TRENDING NOW

Tokyo has opened certain sectors to overseas professionals, such 1. Dow plunges more
than 800 points in
construction and nursing, resulting in a spike of foreign residents in
worst drop since
recent years — a record 2.38 million foreign residents were reported
February, Amazon
in 2016. But the path to permanent residency remains tough. and tech shares lead
the rout

2. A rare and worrisome

thing happened
during Wednesday's
stock market
slaughter: Bonds fell,
too

Japan looks for a sustained

3. US Stock futures

 tourism boom as Olympics

approach  
11:06 PM ET Sun, 25 Feb 2018 | 03:14
point to another drop
on Thursday as
October stock-market
rout continues

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10/11/2018 Foreigners could ease Japan's labor shortage, but Tokyo prefers robots

Last month, Abe announced his intention to allow more professional 'gone crazy' by
and skilled foreign workers, but he wants a limit on their duration of continuing to raise
interest rates
stay and prevent family members from accompanying them.

"Although hard barriers, such as the immigration law, have been

5.
relaxed, soft barriers still remain," said Iwahara. "For example, in Why this market sell-
order to qualify for an employment visa, applicants need to pass a off isn't like the
Japanese language test, which could be challenging." correction at the
beginning of the year
And because English language skills among Japanese remain low,
citizens may not always be comfortable directly working with non-
Japanese speaking foreigners, he said.

Tokyo's rigid refugee policy — the government maintains a 99

percent rejection rate — is also under intense scrutiny as the number
of globally displaced people hits a record high.

The country received nearly 20,000 applications from asylum

seekers last year but accepted only 20, according to government
data, down from 28 people in 2016.

"Japan has welcomed less than 1,000 refugees since 1982," noted
said Kingston: "Such minuscule numbers, less than tiny Iceland,
deprive Japan of any potential dynamism."

Nyshka Chandran
Reporter, CNBC Asia-Pacific

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