Japan Likely To Open To More Migrants Workers

We have been forecasting that Japan, given its demographics, will eventually be compelled to liberalize its labor markets, despite the popular aversion to accept migrant workers.

Here is what I wrote in 2009,

And as its economy recovers, Japan's dwindling population (see the above chart from japanfocus.org) will endure strains from labor shortages.

While Japan can easily absorb more foreign workers when it is deemed as politically convenient, it would bear additional costs from the "learning curve" to integrate foreign workers to its society.

I guess the political pressures for such liberalization appears to be mounting, and seems even to emanate from the political class.

It isn’t just Japan’s demographic conditions that have been impelling for such changes but likewise China’s demographic trends—where the latter may provide competition for foreign workers.

This from Japan Times,

Foreign Minister Seiji Maehara called Wednesday for appropriate rules to accept more foreign workers ahead of an anticipated severe labor shortage in rapidly aging Japan, warning that China's eventual "supergraying society" could soak up migrant workers…

"If China seeks nurses and caregivers from neighboring Asian countries in 10 to 20 years' time, Japan, which already suffers from a shortage of staff, will compete with a country that has 10 times more people to secure medical workers," he said.

The foreign minister criticized the health ministry for being reluctant to accept more foreign nurses and caregivers and prioritizing the employment of existing qualified Japanese who are not working right now.

I’d bet cultural inhibitions extrapolated through politics will eventually pave way to embracing reality.