By the end of 2022, the number of foreign residents in Japan had surpassed 3 million for the first time, according to figures from the Ministry of Justice of Japan.
Most of these residents, who hold a variety of citizenship statuses, work in the Asian labour market. 325, 000″ specialized intern trainees” and 131,000″ specific skilled workers” make up a sizeable portion of this foreign labor force, supporting the Chinese economy.
Both positions are predicated on the idea of learning a skill while working, but it has been argued that these workers are used as low-cost immigrant workers with little training support.
International employees of Japan’s Technical Intern Training Program were allegedly exploited, according to Stephanie Hegarty, a BBC blogger, in 2019. They work in sectors like food and beverage production, knitting, building, cleansing, and agriculture where there is a shortage of labor. To perform the tasks that Chinese workers do not want to perform, Japanese society relies on 450, 000 foreign workers.
A Chinese government panel recommended abolishing the plan and replacing it with a new system by April 2023. After this time, the panel will deliver its final statement to the state, and a new program is anticipated to go into effect in 2024.
With 54 % of technical intern trainees and 59 % of designated skilled workers, Vietnam is the largest source of this migrant labor. The number of Asian people living there over the past ten years has almost doubled to 490,000, no just migrant workers.
It was anticipated that Vietnam would continue to be the main cause of migratory labor in Japan. However, the tide has changed as a result of the Chinese yen’s sharp loss, which peaked in October 2022 at 150 Japanese to the US dollar after 32 years.
Additionally, the yen’s depreciation against the Vietnamese dong has accelerated, and Vietnamese immigrant workers’ salaries have dropped by at least 10 – 20 %.
According to Nguyen Thuy Linh, leader of the Hanoi-based Himawari Service, it has become challenging to find migrant workers to work in Japan since the currency’s loss.
However, Japan, where wages have no increased in 30 years, is still a desirable option for some Asian workers, whose average monthly wages at home are presently between US$ 200 and 300.
The wage gap between Chinese and Asian salaries can be anticipated to close further based on common wages reported by Vietnam’s General Statistics Office and average pay for professional intern trainees and specific skilled workers, according to the Ministry of Health, Labor, and Welfare of Japan.
For professional intern trainees, the regular monthly wage in Japan in 2021 was 8.2 times higher than it was in Vietnam for specific skilled workers. However, by 2025, it is anticipated that the average monthly pay for professional intern trainees and skilled workers will be 5.9 times higher than the Vietnam figures, both.
Additionally, according to projections, the regular monthly pay for specialized intern trainees and skilled workers will decrease to 3.4 times and 3 times, both, in 2031.
Therefore, it is likely that 2031 will be a pivotal year when Asian workers stop viewing Japan as an alluring source of income. As wages in Japan will only be roughly three times as high as local levels, the costs associated with relocation will no longer be beneficial.
As of 2023, the cost of living in Japan is roughly four times higher than that of Vietnam. The average monthly salary for migrant workers is around 180, 000 japanese( roughly US$ 1, 250 ), but 40 to 50 percent of that amount is deducted from their pay for social insurance, taxes, and dormitory costs.
To ensure the continued movement of immigrant labour necessary to supporting Japan’s market, certain measures must be taken. The first step is getting rid of agents.
To cover his traveling costs to Japan, a Asian immigrant worker borrows around 1 million yen from brokers. That number is higher than what immigrant workers from other nations, like Indonesia or the Philippines, are paid.
Japan would do well to adopt South Korea’s work enable system, which was put into place in 2006. This is straight run by the Ministry of Employment and Labor in South Korea and eliminates broker. In addition to eliminating agents, South Korea now permits immigrant workers to switch jobs within the same sector under specific restrictions.
Professional intern employees and specific skilled workers would be officially recognized as” migrant workers” as the second improvement. For immigrants whose status as” recruits” may cause companies to misuse their superior position and compel them to work for lower pay, this may result in better outcomes and care.
The next indicator is related to the ability of returning immigrant workers to develop their skills. Professional intern trainees and specific skilled workers are primarily expected to work in Japan, not in their home countries, where they will put their newfound knowledge and skills to use.
When a employee returns to their home country, there is almost no assistance offered for job placement or more development, with the exception of some ready companies.
The life of workers after they return home may become significantly improved if they are able to work in native factories after learning their skills and knowledge in Japan, and the governments of Japan and Vietnam work together to establish a national certification that is recognized in Vietnam.
The number of Asian people who want to study technologies in Japan will rise if the conditions are more alluring, even though wages are a little lower than in other nations.
The Japan Center for Economic Research’s main economist and Tama University professor is Atsushi Tomiyama.
This article was republished under a Creative Commons license in the most recent issue of & nbsp, East Asia Forum Quarterly, Vol. 15, No 3.