The article in Gendai Business on November 9, 2024 talks about the benefits of increasing the number of foreign workers in Japan, from the perspective of managers who can procure labor at low prices, in addition to resolving labor shortages. It also points out the perspective of consumers who can obtain services at low prices as a result. On the other hand, it emphasizes that the disadvantage is that wage increases are suppressed. Below, I would like to discuss other possible advantages and disadvantages.
Advantages
1.Revitalizing the economy and increasing consumption
As the number of foreign workers increases, domestic consumption also increases. As foreign workers live in Japan, earn income, and engage in consumption activities, demand is created in various industries such as restaurants, retail, and the rental market. This has the potential to revitalize the economy and contribute to economic growth, especially in rural and urban areas.
2.Promoting industrial diversification and innovation
The diverse knowledge and experience that foreign workers bring leads to the diversification of companies and industries as a whole. Particularly in the IT and digital technology fields, the skills and technical capabilities of overseas workers are expected to contribute to strengthening the competitiveness of Japanese companies. Additionally, the interaction of people from different cultural backgrounds can generate new perspectives and ideas, which can foster innovation.
3.Supporters of the social security system
Japan’s working population is decreasing due to the declining birthrate and aging of the population. The increase in foreign workers will contribute to securing a young working population and play an important role in supporting social security systems such as pensions and medical insurance. This is expected to reduce the burden of future social security costs and make the system more sustainable.
4.Promoting multicultural coexistence
Increasing the number of foreign workers will increase opportunities for multicultural coexistence in local communities. The coexistence of different cultures and values fosters the international sensibilities of the entire local community, and provides a good opportunity for Japanese people to understand other countries’ cultures and broaden their international perspective. Furthermore, as the number of children of foreign workers increases in educational settings, an environment is created in which children can learn about diverse values and cultures.
Disadvantages
1.Deteriorating working conditions and human rights issues
As the number of foreign workers increases, the risk of deteriorating working conditions increases. Long working hours at low wages are often a problem, and in some cases, the treatment of unskilled workers and technical intern trainees is particularly inappropriate. If foreign workers are placed in harsh working conditions, human rights issues could invite international criticism and damage Japan’s image.
2.Friction and prejudice in the local community
The influx of foreign workers into a region can create friction and prejudice in the local community. Local coordination is necessary because language and cultural differences can increase misunderstandings and concerns with local residents. Additionally, security concerns may arise and may cause social unrest.
3.Wage competition with Japanese workers
Foreign workers working for low wages increases the risk that Japanese workers’ wages will be suppressed. There are concerns that competition will intensify, especially in unskilled labor and low-wage occupations, and that the employment of Japanese workers will be threatened as a result. It may also cause young Japanese people to have difficulty finding employment, and in the long run there is a risk that inequality in society as a whole will widen.
4.New burden on social security
As foreign workers become permanent residents and age, they may create new burdens on Japan’s social security system. Although they can be expected to contribute economically while they are active in the labor force, as they become more permanent residents, the burden of social security and medical expenses will increase in retirement. As a result, financial issues will emerge in the long term, and the system will need to be reviewed.
Summary
Increasing the number of foreign workers is an important means of resolving Japan’s labor shortage and revitalizing the economy. There are also many positive impacts, such as industrial diversification, promotion of innovation, and progress in multicultural coexistence. However, on the other hand, problems such as lower wages, deterioration of the employment environment, and friction in local communities have emerged, and appropriate responses are required from society as a whole.
Considering these advantages and disadvantages, it is important for Japan to build a sustainable system for accepting foreign workers by providing comprehensive support, education, and improving the working environment. Policies are also required to promote coexistence with local communities and Japanese workers.