Japan Immigration News

Japan bets on tech, immigration as labor crisis worsens

Release Date: 2024-02-07
Media: DW
Summary: Japan is facing a severe labor shortage, which has now spread beyond traditional sectors like nursing, elderly care, construction, and transport, reaching the public sector as well. In late January, the Education Ministry requested local authorities to estimate the number of teacher vacancies for the upcoming academic year. Surveys indicate that 29 out of 68 prefectures are already experiencing teacher shortages. Despite efforts like a ¥500 million project to attract more university graduates into teaching, the private sector's attractive salaries make it difficult for local governments to compete.

The labor shortage is worsened by Japan’s aging population, fewer children being born, and longer life expectancies. Key sectors such as healthcare, transport (including truck and taxi drivers, and public transport operators), and logistics are already struggling. For example, truck driver shortages, exacerbated by new laws in 2024, could reduce transportation capacity by 34% by 2030. Additionally, the number of taxi drivers has decreased by 40% since 2009.

Despite long-term awareness of the problem, previous government efforts to address it, such as encouraging higher birth rates, have had little impact. Companies have relied on older workers and part-timers, but the pool of available workers is shrinking. As a result, businesses are facing staffing shortages and wage inflation as workers have more job opportunities.

To address this, the Japanese government has introduced measures to ease immigration rules, allowing foreign skilled workers to fill labor gaps. However, the response has been underwhelming, with fewer immigrants arriving than expected, partly due to the pandemic. The government is now expanding visa categories to include workers in transportation and forestry.

However, some analysts, such as Hiroshi Yoshida, argue that Japan’s cultural reluctance toward foreign workers and the language barrier may limit the effectiveness of immigration. Additionally, neighboring countries also face declining birth rates.

The more promising solution lies in automation, robotics, and AI, where Japan remains a leader. These technologies can help reduce dependence on human labor and address the workforce shortages. As AI and robotics technology improves, they are increasingly being adopted in various sectors, including hospitality and transport, with minimal resistance. Experts believe these technological advancements may be the key to solving Japan's labor crisis in the long term.
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