Japan is seeing an increase in long-term foreign residents as a persistent labor shortage makes companies more willing to take on international students and job seekers to fill empty positions.
More than 40% of foreigners in Japan have been there for three years or more, a notable increase over the past 20 years, data shows. But its retention rate of international students still pales in comparison to that of Canada and Germany, indicating a need for increased support in job hunting.
Mongolian-born Erdenetogtokh Tuvshinbat is a former foreign student who has stayed on by founding a startup.
He came to Japan in 2010 through a government program and studied international relations at Hitotsubashi University. He worked in data analysis at a major corporation before launching Tab Solution in 2019. The business develops and provides apps for foreign job seekers and employment management systems.
“I want to expand services around the world from my base in Japan, which is a comfortable place to live,” he said. About half his 20 employees are former international students.
The government does not have a set definition of long-term residents. But 41.7% of those who came to Japan in 2016 have lived there for three years or more, according to Yu Korekawa of the National Institute of Population and Social Security Research who analyzed data from the Immigration Services Agency.
“When the economic disparity between Japan and the country of origin was wide, there were sufficient merits to short-term migrant work, but as the disparity narrowed, it became necessary to work longer to reap the benefits,” Korekawa said. “I think more people are staying in Japan for a better quality of life.”
There were 1.82 million foreign workers in Japan as of the end of October 2022, a record high. Foreign workers who complete a technical intern training period after five years are staying by switching to visas for skilled workers in sectors struggling with acute labor shortages.
The number of international students who choose to work in Japan after graduation is also increasing.
Those who are on specialist visas, unlike those on technical interns, face no limit on the duration of stay and can renew their visas as many times as they want.
As of June 2022, about 300,000 people were working under this status, many of whom had stayed on after graduating from Japanese schools.
About 29,000 people changed status from student to work visas in 2021, 3.4 times more than 10 years ago. The specialist status accounted for 80%.
“Since about 10 years ago, demand for foreign labor has increased in areas such as IT, sales to visitors to Japan and overseas sales, making it easier for international students to find a job,” said Kouichi Takeuchi, president of job site Global Power, which caters to foreign job seekers.
Other countries are also making efforts to retain foreign students. In Canada and Germany, which give preferential treatment to students looking to obtain work visas, more than 60% of foreigners remain in the country five years after entering. Japan’s figure stands at less than 40%.
The Ministry of Education, Culture, Sports, Science and Technology has assisted universities that help foreign students find employment.
The Council for the Creation of Future Education, chaired by Prime Minister Fumio Kishida, seeks to increase the rate of foreign students who stay in the country.
Employing international students diversifies a company’s talent pool, with their knowledge and skills giving it a competitive edge. They support the economy as consumers, and they also take part in the social security system by contributing to health insurance and pension plans.
Collaborate efforts among the government, localities and employers are need to ensure their success in Japanese society.
(Source – “Nikkei Asia“)
