Saturday, July 25, 2020

Relaxed Immigration: The key to rejuvenate aging workforce of Japan

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Syed Ahmed Uzair

Article Title

Relaxed Immigration: The key to rejuvenate aging workforce of Japan

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Global Views 360

Publication Date

July 25, 2020

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Two Japanese people with briefcase and umbrella

Two Japanese people with briefcase and umbrella | Source: Bantersnaps via Unsplash

Late in 2018, a bill was passed in Japan to widen the entry of immigrant workers. The bill was to mitigate severe shortage of labor amidst an aging population and falling birth-rates. Prime Minister Shinzo Abe described the bill as a much-needed reform to ensure the smooth functioning of Japanese  economy. The bill makes it easier for immigrants to work for longer duration in Japan.

More than 20% of Japan’s population is over 65 years old which is the highest proportion in the world. It is projected that by 2030, one in every three people will be above 65 years or older and one in every five will be 75 years or older.

The fertility rate has fallen to 1.4 children per woman in Japan which has been attributed to a host of factors including changing lifestyles, people marrying late, not marrying at all, and the economic insecurity of the younger generation. It is projected that by 2050, Japan’s population will decline by twenty million while the world population is expected to increase by two billion.

Japan has traditionally been quite homogenous with  very little diversity to show. This trend now appears to be changing as today nearly three million migrants live in Japan which is three times more than the figures of 1990. As the country struggles with a rapidly aging population and severely declining domestic labor, the number in all likelihood is only going to increase.

Conservative Prime Minister Shinzo Abe based his support for the reforms in immigration policy on demographic arguments.The conservative section of the parliament has been a staunch supporter but the left opposition has been critical of the bill citing concerns about a lack of regulation on the employers which could lead to over-exploitation of the workers. Prime Minister Shinzo Abe’s government promised to set up a hundred consultation centers nationwide for dealing with issues related to workplace abuse specifically for the migrant workers.

However, that’s as far as those resisting the bill have gone. Nationalist and xenophobic voices protesting the bill have failed to gather steam. In fact, according to a survey by Nikkei in January 2020, almost 70 percent of Japanese said it is “good” to see more foreigners in the country.

Japan’s aging population has made it difficult to find the workers and some companies have more than 120 job openings for every 100 job seekers nationwide. Quite evidently, immigration now appears to be the most feasible solution for Japan- a country that has traditionally been restrictive with its borders when it comes to ethnic diversity.

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February 4, 2021 5:07 PM

Expat Exodus In The Middle East

The COVID-19 pandemic has hit people and economies worldwide, sparking a global recession and financially destabilising millions of people. In the Middle East, dipping oil prices have only worsened the threat to the economy. Businesses are shutting down, and many are trying to survive by cutting the salaries or laying off of workers. Large segments of the workers in these countries are expatriates, and many have struggled to make ends meet as unemployment soared.

The development of the Gulf countries has always been intertwined with their large expat populations. These workers are often vital to the economy, not just as part of the workforce but also as consumers by enabling successful malls, restaurants and other forms of recreation and tourism. Countries like Saudi Arabia gain valuable non-oil revenue in the form of increased Value Added Taxes (VAT) and by imposing a monthly fee on migrants who want to sponsor family members.

Many of these workers are from developing Southeast Asian countries such as India and Pakistan, and contribute greatly to their home country’s economy in the form of remittances, i.e sending money back home. Those who are facing unemployment or salary cuts are eager to be repatriated, especially since in many Gulf countries visas, rent, and even phone lines are linked to jobs, and expats have little to no social safety nets to fall back on.

Panicked” Indians applying to go back home crashed the Dubai aviation ministry’s website for applications in the process. The consulate says it has received around 200,000 applications for repatriation of expats from as many as 12 countries.

For some, closing businesses are forcing them to go home. For others, the cost of education is the major concern. The Emirates group, Uber’s Middle Eastern counterpart Careem, and hotels are some of the few major employers considering laying off large portions of their staff or reducing salaries.

Dubai has been one of the hardest hit, as expats form an estimated 92% of the population. Dubai based movers estimate that they’re getting up to seven calls a day to ship belongings abroad. It is extremely hard to gain permanent resident status in countries such as the UAE, and the costs of living and education are quite high and often provided by employers, which has made leaving the only option left for many laid-off workers across all fields.

The UAE has tried to offset the damage by granting automatic extensions to expiring work permits, waiving of work permit fees and fines, and providing interest-free loans and repayment breaks.

Meanwhile, governments in Kuwait and Oman are trying to mould the exodus into an opportunity to boost local employment. On the other hand, the Saudi Arabian government has been criticised for not taking enough measures to protect the local workforce.

While the Gulf countries have been trying to decrease their dependence on oil wealth and foreign workforce, it is not something that can be accomplished soon, especially given the great dependence of the Gulf economies on both those factors.

There is still too unavoidable a gap between the current skill of local workers and the training needed to compete with foreign professionals, making it hard to simply employ domestic workers in place of foreign ones. The pandemic, however, might not leave much of a choice.

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