Japan to Face a Shortage of 1 Million Foreign Workers by 2040

  • The Japanese labour market will need about one million more foreign workers by 2040.
  • Labour shortages in Japan are closely related to the decrease in population.
  • Among other occupations, Japan is facing a shortage of physicians and medical staff.

Japan is expected to face a shortage of nearly one million workers in 2040, according to the Japan International Cooperation Agency (JICA).

At this tempo, the number of foreign workers in Japan is expected to reach 5.91 million by 2040, according to JICA’s research arm. However, the think tank anticipates the country will need about one million more foreign workers to fulfil its economic development targets, VisaGuide.World reports.

Japan’s reliance on the international workforce is closely related to its continuous population decrease, which is attributed to the country’s low birth rate.

Citing official data as of January 1, 2023, Reuters reported that the number of Japanese nationals dropped by nearly 800,000 people to 122.42 million.

Consequently, the number of foreign workers has increased over the past few years, reaching 2.05 million in October 2022.

Despite this increase, Japan still struggles with labour shortages in specific sectors. To address this issue, the Japanese government has broadened its long-term foreign worker visa scheme.

However, considering challenges such as the weakening of the yen currency, low salaries, and human rights issues, experts have suggested the government increase its efforts to attract foreign talent, as Reuters further reported.

Japan Needs More Physicians & Medical Staff

According to Statista, the number of certified care workers in Japan has surged over the past ten years, reaching nearly 1.94 million in 2023. However, considering the country’s growing aging population, this figure is expected to increase further.

Due to the low birth rates and the high life expectancy, the number of people aged 65 and older in Japan is increasing and is projected to reach a share of over 38 percent of the population in Japan by 2060.Statista

As a result, the number of elderly in nursing care homes has been increasing, and Japan needs more physicians and medical staff.

https://flo.uri.sh/visualisation/18465509/embed?auto=1

Japan to Ease Requirements for Hiring Foreign Trainee Caregivers

Japan is looking to attract foreign healthcare professionals amid its efforts to alleviate the shortages in this sector.

Moreover, the Ministry of Health, Labor, and Welfare revealed recently that Japan has decided to relax the requirements for nursing care homes to hire overseas technical interns.

As per current rules, only nursing care homes that have been operational for more than three years can hire foreign workers.

However, under the new regulations, nursing homes that have been operational for less than three years will also be able to hire overseas workers if the agencies that manage them were created more than three years ago.

Among other changes, Japan will expand the list of foreign caregivers who provide home-visit nursing assistance.

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