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Japan Faces a Crucial Crossroads: Can Society Continue to Thrive?

by Hyacinth

In 2023, former Prime Minister Fumio Kishida highlighted the urgent issue of Japan’s declining population. Since peaking at 128 million in 2008, the nation’s population has rapidly decreased, with projections indicating a loss of 19 million working-age individuals by 2050. This demographic shift not only reduces the workforce but also complicates funding for an expanding social security system, as Japan grapples with both shrinking and aging populations.

Japanese women are increasingly opting to have fewer children, influenced by factors such as high childcare costs, demanding work hours, and societal pressures surrounding motherhood and employment. Currently, Japan’s fertility rate stands at 1.3 children per woman, well below the 2.1 required for population stability. Additionally, Japan has the second-oldest population globally, with over 10% of its citizens aged 80 or older. As the population ages, expenses related to pensions, healthcare, and social security rise, straining the tax base and complicating service funding.

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To address these challenges, the Japanese government has implemented initiatives like “baby bonuses,” which offer 100,000 yen (approximately $670) to expecting mothers. Japan is also increasing the number of young immigrants to strengthen the workforce and reduce reliance on older citizens. Unlike some European countries facing similar issues, these immigration reforms have not sparked significant public backlash, and many Japanese seem supportive of these changes. However, the government prioritizes immigrants based on their economic contribution, often neglecting integration support. Enhancing resources for newcomers will be essential to attract more youth from abroad and tackle the ongoing population crisis.

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Historical Context of Immigration Policies

To meet its economic growth target of 1.24% annually, Japan requires 6.74 million foreign workers by 2040—nearly four times the number present in 2020. Historically, Japan’s isolationist stance shaped its immigration policies, which were stringent until the recent population crisis. The 1952 Immigration Control and Refugee Act primarily allowed immigration through work visas or for individuals of Japanese descent.

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During the 1980s, Japan’s rapid urbanization and economic growth made it a more attractive destination for immigrants. Despite this, the government maintained restrictive immigration policies, even tightening visa requirements in 1990 to focus on high-skilled workers. This created loopholes that allowed low-skilled workers to fill gaps in the labor market, primarily through the Technical Intern Training Program (TITP). Launched in the 1990s, the program aimed to train foreign workers in Japanese skills but often resulted in exploitative labor conditions.

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Foreign workers historically faced significant challenges, including a lack of access to public housing, healthcare, and job opportunities. After the 2008 Great Recession, Japan even introduced a “pay to leave” initiative, incentivizing low-skilled workers to depart the country.

Efforts to Recruit and Retain Foreign Workers

In response to its demographic challenges, the Japanese government is now focusing on improving recruitment and retention strategies for foreign workers, particularly in critical sectors like healthcare and construction. This includes issuing more short-term visas, extending residency periods from three to five years, and shifting registration processes to simplify re-entry. Additionally, Japan is working to attract more international students by offering special visas for post-graduation job searches. Following a drop in foreign students due to COVID-19, their numbers rebounded by 20.8% between 2022 and 2023.

Japan is actively recruiting workers to fill specific labor shortages through the Specified Skilled Worker (SSW) and High Skilled Foreign Professionals (HSFP) programs. The SSW program, established in 2019, targets middle-skilled workers in various industries and provides support such as housing and comparable salaries. However, applicants must pass a Japanese language proficiency test, which can be challenging for many.

The HSFP program, introduced in 2012, utilizes a points-based system to attract highly skilled professionals, allowing them to bring family members and domestic staff. This system assesses candidates based on academic background, professional experience, and other factors. Starting in the 2024 fiscal year, Japan plans to accept approximately 820,000 foreign SSW workers over five years.

Shifting Demographics and Public Perception

The growing number of immigrants is changing Japan’s demographic landscape. In 2000, immigrants accounted for 1.34% of the population, while by 2023, this figure rose to 2.7%. In urban centers like Tokyo, 10% of residents in their 20s are now foreign-born. Despite Japan’s reputation for homogeneity, there has been little public resistance to these changes.

Many citizens understand the necessity for increased immigration, supported by clear government messaging about the need to address labor shortages caused by demographic shifts. Although some anti-immigrant sentiment exists, particularly among older individuals, most Japanese people support immigration reforms. A 2018 survey indicated that 59% believed immigrants contribute positively to society, while a 2024 survey found 62% favor increasing visas for skilled foreign workers.

Challenges in Integration

Despite the general acceptance of immigration, Japan’s policies often fall short in providing adequate support for newcomers. While immigrants can access healthcare and permanent residency, they face significant barriers in language learning, cultural education, and disaster preparedness training. Notably, Japan lacks an anti-discrimination law, limiting recourse for immigrants facing discrimination.

Naturalization remains a significant hurdle for many immigrants. Strict requirements mean that children raised in Japan by permanent residents may not gain citizenship. Prospective immigrants often find the naturalization process daunting, as it involves proving financial stability and renouncing other citizenships.

Japanese work culture also poses challenges for foreign workers. Many international students express reluctance to pursue careers in Japanese companies due to long hours and discriminatory practices. Language barriers further complicate job opportunities, with many employers preferring Japanese speakers.

The Need for Improved Support

To effectively address the population crisis, Japan must enhance support systems for immigrants, particularly in language acquisition and cultural integration. Initiatives providing language programs and job training can facilitate positive assimilation, allowing immigrants to contribute more effectively to the economy. Support for job transitions and cultural acclimatization is crucial for their long-term success.

Although the Japanese government and society show willingness to embrace immigrants, significant improvements are needed to assist their integration. Successful support for immigrants will be vital for addressing labor shortages and funding Japan’s social security system. By empowering newcomers, Japan can harness their potential to strengthen its economy and ensure a stable future.

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