Japan losing attractiveness to foreign workers amid economic stagnation

TOKYO -- While the Japanese public's expectations for Prime Minister Sanae Takaichi, who advocates stricter regulations on foreign nationals, are significant, it is also a fact that Japan is gradually becoming a country that is "not chosen" by foreigners due to prolonged economic stagnation.

"The number of technical intern trainees coming from China has drastically decreased. Japan is no longer attractive," revealed a director in his 30s from a Tokyo-based cooperative association, which accepts technical interns from various Asian countries and introduces them to Japanese companies, who spoke on condition of anonymity.

In 2015, there were 38,327 Chinese workers under the Specified Skilled Worker No. 1 visa, but by 2023, this number had dropped to less than a third, at 11,347. In contrast, the number of Vietnamese workers more than doubled to 77,634 during the same period.

When working in Japan, these interns earn around 170,000 to 180,000 yen (about $1,120 to $1,200) a month. After deducting expenses including dormitory fees and insurance, their take-home pay is about 130,000 to 140,000 yen, from which they send a few tens of thousands of yen (less than $600) back to their home countries.

"Not only in China but also in places like Cambodia, smart individuals can now earn a sufficient salary in their home countries. There is no need to come to Japan for work," he explained.

In recent years, his cooperative has focused on Indonesia. Japanese companies have praised workers from there as "diligent and honest." He commented, however, "The number of people coming from the capital, Jakarta, has dropped. Most are now from rural areas or remote islands."

While Asian economies are experiencing remarkable growth, Japan has long suffered from a recession, coupled with a prolonged weak yen.

Although minimum wage hikes recently made headlines in Japan, "Wages remain lower than in Singapore, Taiwan and South Korea," he said.

The quality of technical interns coming to Japan is also declining, the director noted. "There is no reason for talented individuals to come to Japan. I'm not saying it's everyone, but there is unfortunately a perception that more low-skilled and unmotivated people are coming."

Despite the rising cost of hiring technical interns, inquiries from Japanese companies continue unabated.

The director said, "There are no young people in Japan. We often introduce workers to businesses in areas such as north Kanto (in east Japan), and Aichi and Gifu prefectures. Companies say they want people from any country."

Ryuji Kinoshita, president of Hayate Japan Corp., which primarily mediates Filipino workers, faces similar challenges. "The notion that you can't earn money in Japan has spread. During the bubble economy (in the 1980s and early 1990s), everyone wanted to come to Japan, but now English-speaking countries like the U.S., those in Europe and New Zealand are popular."

According to Kinoshita, having work experience in Japan often benefits those seeking employment with Western companies. As a result, many Filipinos consider working in Japan as a stepping stone.

"Japan is merely a transit point. I believe 80% of Filipinos working in Japan think this way," Kinoshita said.

It is only natural for foreigners to seek employment in countries with higher wages, but Japan faces a severe labor shortage. Can it become a country that is "chosen" by foreigners?

Kinoshita explained, "There will likely be no increase in Chinese workers. 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. Next, it will likely be those from Africa. The demographics of foreigners coming to Japan will continue to change."

(Japanese original by Akihiro Kawakami, Expert Writer, Tokyo City News Department)