President Joe Biden has suggested that countries like Japan, China, and Russia are struggling economically due to xenophobia and their resistance to welcoming immigrants. Speaking at a campaign fundraiser in Washington, Biden pointed out that the U.S. economy is thriving because it is open to immigrants. Japan, a key U.S. ally in the Asia-Pacific region, has been experiencing economic challenges and demographic issues, including an aging and declining population. Despite efforts to attract more foreign workers, restrictive immigration laws have made it difficult for Japan to achieve sustainable growth and integration of immigrants.
In an attempt to address its labor shortages and boost economic growth, Japan has approved legislation to increase the cap on skilled foreign workers and establish a new training system for unskilled foreign workers. However, the country’s approach to immigration has been criticized, with researchers noting that foreign nationals are often denied equal opportunities and protection from discrimination. This has hindered Japan’s ability to effectively integrate immigrants into its society and workforce, putting it behind other developed countries in terms of migrant integration policies.
Japan’s weak yen, which is at a 34-year low against the dollar, has made it less attractive for foreign workers compared to other countries in the region like South Korea and Taiwan. To sustain economic growth, Japan will need to significantly increase its foreign worker population by 2040, as there are already serious labor shortages in key industries such as agriculture, construction, and manufacturing. The Covid-19 pandemic has exacerbated these shortages due to border closures, leading officials to explore other measures such as encouraging greater workforce participation by women and delaying retirement.
Despite its economic struggles, Japan remains committed to attracting foreign workers and addressing its labor shortages. The country’s economy grew at a modest rate of 0.4% in the last quarter of 2023, following an initial estimate of a 0.4% contraction that would have placed it in a technical recession. Japan’s efforts to increase the number of foreign workers, improve its immigration policies, and promote greater workforce participation by women are crucial for sustaining economic growth and addressing demographic challenges. As a key U.S. ally in the Asia-Pacific region, Japan’s success in overcoming these obstacles will be important for maintaining regional stability and security.
