Japan eases immigration norms to help firms

While the US imposes harsh measures on new immigrants wishing to enter the country for work, especially from the neighbouring countries like Mexico, news from Japan shows the opposite. The Japanese government recently approved a bill to ease restrictions on its immigration laws.

In the past, Japan’s immigration laws had imposed severe restraints, where hiring expat workforce was only allowed on rarest occasions.

The new laws, on the other hand, allow expatriates to work in several sectors and services such as construction, agriculture, health and others. Unemployment levels in Japan has dipped to 2.7 per cent, the lowest since 1993.

The latest move will, no doubt, lead to further prosperity for the Japanese economy in the coming years.

Recent indicators highlight the positive developments in the Japanese economy, whose GDP grew by 1.9 per cent in 2017, while the second quarter of this year witnessed positive developments, supported by a strong spending by Japanese families and companies.

This has enabled Japan to recover from deflation witnessed in the first quarter of the same year due to the global trade tensions triggered by protection measures and escalation of global trade disputes between the United States and a number of other countries, especially China, which strongly affect global import and exports, particularly for the manufacturing sector.

Japan, which ranks third in the world economy after America and China, expects its economy to grow by 1 per cent by end of this year. Japan’s per capita share of GDP stood at around $36,899, and it accounts for 13.7 per cent of the world’s private financial assets.

Japan’s decision to ease restrictions on immigration is a response to calls made by most Japanese companies who have been demanding the same for years. A strict immigration system had caused a severe shortage of expat labour, especially skillful labour.

However, officials from the Japanese companies are keen on tightening measures in order to maintain high standards when hiring foreign labour who should fit the workplace, whilst preventing the entry of unskilled labour.

A recent poll conducted by Reuters revealed Japan faces the greatest labour shortage in 50 years as a result of ageing of most of its population, prompting the government to open the door to foreign workers to meet the demands of local enterprises and companies.

However, this does not mean there is a lack of foreign labour in Japan. The poll showed that 57 per cent of large and medium Japanese companies employ foreigners. While 60 per cent of them prefer a more open immigration system, only 38 per cent support unqualified workers entering the country to alleviate the labour shortage.

The final step to ease restrictions on foreign labour in the country will be through the issue of work permits for expats for a period of five years.

Meanwhile, it is likely that Japanese authorities will allow those passing certain tests to stay indefinitely and bring along their families, which will certainly lead to a relatively big change in Japan in the next few decades.

Implementing the recent decision will repair the damage to some sectors, including agriculture, nursing, construction, hotels, shipbuilding and transportation.

According to statistics from the Japanese government, there were less than 240,000 foreign workers and 250,000 trainees at the end of 2017.

The new measures will revive advancement of the Japanese economy and lead to global growth amid the intense global competition after many years of suffering from deflation.

The decision to ease restrictions is a response to calls made by most Japanese companies. A strict immigration system had caused a severe shortage of expat labour, especially skillful labour