With the unemployment rate approaching a perilous 2 percent, a labor shortage is manifesting itself as a clear and present danger for the Japanese economy. Predictably, immigration was the first item on Prime Minister Shinzo Abe¡¯s agenda as he got back to work after winning a third term as president of the ruling Liberal Democratic Party.
Even though ¡°guest workers¡± seems to remain the preferred terminology in the world of Japanese politics, the tone of the immigration discussion has undoubtedly shifted toward a more pragmatic approach to encourage long-term foreign workers, instead of trainees or student-visa holders who typically work in Japan for only a few years before returning to their home countries.
This newly reinforced support of foreign workers within the LDP is a welcome development for Japanese companies, but it is far from being sufficient in solving the core problems of Japan¡¯s labor market.
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