Japan is facing a potential shortage of almost 1 million foreign workers by 2040, according to a report by the Japan International Cooperation Agency. This shortfall could hamper the country’s economic growth goals as its population continues to decline.
The current pace suggests that by 2040, 5.91 million foreign workers will be in Japan, falling short of the needed workforce for the targeted growth rate. The gap has widened significantly from previous estimates, with factors such as slower economic growth in key emigrating countries contributing to the shortfall.
Foreign workers play a vital role in Japan’s economy, helping to address labor shortages caused by an aging population and low birth rate. The government has expanded work visa permits to various sectors to address the issue but still faces challenges such as low wages and human rights concerns.
To remain competitive globally and attract talent, Japan needs to address these obstacles and increase efforts to secure a sufficient foreign workforce. Despite the hurdles, experts emphasize the importance of enhancing Japan’s appeal to immigrant labor.