An estimate from a state-backed think group on Thursday revealed that if the government intends to meet its targets for economic development as the country’s population declines, Japan would need about a million foreign workers by 2040.

The Japan International Cooperation Agency (JICA)’s research division predicted that, at the present rate, 5.91 million foreign workers will be employed in Japan in 2040—nearly one million fewer than the number of foreign workers required to maintain the desired average annual growth rate of 1.24%.

After updating the statistics to account for slower-than-expected economic development in emigration nations like Vietnam, Myanmar, and Cambodia, the researchers found that the demand-supply imbalance in foreign labour had expanded by more than double from JICA’s prior projection in 2022.

Japan’s economy depends heavily on foreign labourers because of the country’s acute manpower shortage brought on by a rapidly ageing population and declining birthrate.

As of October of last year, 2.05 million foreign workers in Japan made up around 3% of the country’s employment, having more than doubled over the previous 15 years.

The government has eased popular sentiments towards accepting immigrant workers by expanding work visa permits to a variety of skilled positions and blue-collar industries.

Notwithstanding obstacles including the declining value of the yen, historically low wages, and human rights violations, experts have stated that Japan has to step up its efforts to remain competitive in the global talent competition.

(Adapted from Reutsers.com)

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