Japanese Globalization: Globalization and Its Impact on Labor Forces

As a final assignment from Japanese and Globalization class, we were asked to write a paper related to Globalization issue. It doesn’t necessarily pertain to Japan. But since I study in Japan, then I thought why not study further about this developed country which has some interesting phenomenon. I was interesting in its population problem. In short, I decided to write this one paper.

Globalization and Its Impact on Labor Forces:

Japan Case

1. Introduction

Globalisation is a process which enables flow of information, technology, goods, services, or even people, between countries all over the world. In this era, technology and information play an important role to gain a competitive position in global market. Japan known as one of the most powerful country in term of economy and technology. However, this developed country is currently facing a great problem regarding labor forces, especially caused by its aging population.

Japan’s population at 2008　based on OECD data, was 127,568,000 with 22% of elderly population aged 65 or over. The rate of population grow from 2001 to 2008 was 0.1% in average. The number of its population projected to be declining, meanwhile the rate of elderly people itself estimated to be 33% by 2050. In order to fulfill the needs of labor market, Japan will be depending on immigrants from other countries. Besides its shortage of labor forces, Japan also facing a problem regarding its pension fund and social security.

1. Labor Force Condition in Japan
   1. Aging population

The main factor that causing the aging population can be divided into two, that is: (1) Decreasing fertility as a result of increasing marriage age. Education might be strongly influence this behaviour. (2) Life expectancy increase as a result of medical service development. Furthermore, low rate of accidents and criminal can also contributed to this matter. Currently, there are about 66.3% of people aged 55-64 who still actively working.

1. Immigration

According to Ministry of Health and Welfare (2002), between 1970 – mid 1980s, Japan annually allowed 20 – 30 thousand immigrants. During the late 1980s and early 1990s, annual immigration increased to about 70 – 90 thousand, but that number declined in recent years. In 2008, foreign population in Japan reached 1.7% of its total population with perhaps another 500 thousand illegal immigrants. The United Nations Population Division (1998) projects that to keep the Japanese population in 125 million, Japan would need an average of 400,000 immigrants annually between 2005 – 2050.

Registered Non-Japanese National Residents in Japan （end of 2008 figures）

Total	China	Korea	Brazil	Philippines	Peru	U.S.A.	Thailand	Vietnam	Indonesia	Others
2,217,426 100％	655,377 29.6%	589,239 26.6%	312,582 14.1%	210,617 9.5%	59,723 2.7%	52,683 2.4%	42,609 1.9%	41,136 1.9%	27,250 1.2%	226,210 10.2%

(1.7% of Japan’s total population)

There are two category for immigrants who enter into Japan:

1. Skilled immigrant who mostly come from English-speaking country.
   1. Unskilled immigrant who mostly come from Asian countries. This immigrants fulfill the needs of low-wage labor market in Japan.

This issue brings up some points into considerations, (1) certain characteristic of immigrants is that, unlike Japanese who would save their salary in bank, those immigrants tend to send back their salary or wage to their homecountry. Therefore, it is unfavorable for Japan’s economy, (2) There is a concern that immigrants would raising up the criminal rate, (3) Some Japanese worker afraid that the presence of this immigrants will lower their salary.

Brain Drain and Brain Circulation

Another interesting phenomenon in globalisation era is brain drain and brain circulation. Brain drain happens when someone who had received advanced education or who work in specialized occupation moved out to another country to exercise his (her) skill and abilities. Brain drain could be disadvantageous for source country since they will lose their advanced skills and knowledge, thus lose their productivity and competitiveness in global market. Furthermore, they will not fully earned their investment on higher education. Nevertheless, the process in which the “brain” moved overseas and then return is called brain circulation (Mahroum, 1998). Unlike brain drain, brain circulation may give advantegous for source country as the skilled people may bring back knowledge from destination country.

Japan is one of recipient country of these brains from overseas. Ministry of Justice Immigration Bureau (2006) reported that there were 8,406; 2,494; and 29,044 individuals with “Instructor”, “Researcher”, and “Engineer” visa respectively. On the other hand, Japanese scientists and researchers are also moving overseas, primarily to United States. According to National Science Board (2006), the number of Japanese who live in United States as high as 59,400. Mostly they are undergraduate or higher level  of education holder, with Ph.D accounted for 5,400.

Most of the “brain” who come to Japan get their higher education in Japan, thus decided to continue working in Japan. Meanwhile, the “brain” who fly away from Japan to United Stated are also get their higher education in Japan then for some reasons decided to go to United States. The reason mainly is to find better research environment. The other reasons are to receive training, to find a job that they could not find in Japan, wage disparities, to learn english, or to gain International acknowledgement. A suvey conducted by Murakami Yukiko (2005-2006) revealed that 31% are willing to work in Japan in the future, 22% says np, and 58% says it is depend on the circumstances.

1. NEET

According to wikipedia site, NEET is an acronym for Not currently engaged in Employment, Education or Training. This classification includes people aged 15 – 34 who are unemployed, unmarried, not enrolled in school or engaged in housework, and not looking for job or training. At first, this phenomenon only hit children from upper-class family. Yet it’s contagious to even middle and lower-class family causing the number raising each year. Survey conducted government in 2002 was revealed that 850,000 people can be classified as NEET, of which 60% were people aged 25 – 34.

1. Suicide

Japanese number of suicidal is the largest from any other country. In 2006, the number reached 19.1% per 1000 people. This issue needs to be solved quickly because it may worsen Japan’s population condition in the future.

1. Recomendation
   1. Regarding aging population problem, since the main cause is decreasing fertility rate, government should promote or encouraging Japanese citizens to have more than one child. It might be done by making a policy for example family who has third child will be given some amount of money or any other encouragement.
   2. Women empowerment by giving an equal opportunity for women to choose their career path.
   3. It is undeniable that Japan needs immigrants to fulfill the need of its labor market. Thus, it might be better to cooperate with legal government’s ­body from another country or official institution to provide it.
   4. Though most of “flied brain” are willing to come back to Japan if it is possible, yet it is still uncertain. To prevent brain drain, Japan has to reform its research environment to be more open, flexible, free, promote competitiveness, and use merit system.
   5. Government should seek the root of this NEET’s problem because if it continues, the number may be getting bigger each year. Thus, Japan will lose its productivity.
   6. Suicide is getting serious and should be overcome soon. With those low rate of population growth, this phenomenon would be more disadvantageous. Government or social organization may create a consultation peer group or something that allow someone who has problem to share with others. There should be social encouragement.
   7. To prevent pshycology-rooted problem, it might be best to prepare a strong mental or EQ from childhood, like elementary school. Another way, for entrance exam, it is not only depend on IQ but also EQ test.

References

Dekle, Robert. (2004). Financing consumption in an aging Japan: The role of foreign capital inflows and immigration. United States: Elsevier Inc.

Koyama, Kaoru & M. Okamoto. (2008). Migrants, Migrant Workers, Refugees and Japan’s Immigration Policy. Japan

Murakami, Yukiko. (2010). Japan’s Brain Drain: An Analysis of Japanese Researchers Living in the United States. Japan

Wikipedia. www.wikipedia.com retrieved July 20th, 19.45