progress of japanese policy on the acceptance of highly skilled human resources

7/23/2019 Progress of Japanese Policy on the Acceptance of Highly Skilled Human Resources

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Progress of Japanese policy on

the acceptanceof highly skilledhuman resources

Natsuko Horii

Director, Foreign Workers Affairs DivisionEmployment security Bureau,

Ministry of Health, Labour and Welfare, Japan

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian

Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI

does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use.Terminology used may not necessarily be consistent with ADB official terms.


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Mr. Hagiwara, Japanese ambassador to France and Mr. Christensen,

the first Secretary-General of OECD, putting their signatures on MOU

of Japans accession to OECD.1963


3/34

Japanese economy has recovered,but still in a difficult situation.

Transition of nominal GDP(trillion Yen)

480 trillion(3rdquarter,2013)

(1st quarter,2013)

(2nd quarter,2013)

(3rd quarter,2013)

nominal GDP growth

(compared to previous year)

(quarter)

(year)


4/34

Advancement of aging society

2010

22.7%

2050

35.6%

0

5

10

15

20

25

30

35

40

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Transition of aging percentage

year

PRC

France

Germany

Japan

Italy

Sweden

UK

USA

Source: UN World Population Prospects : The 2006 Revisionmoderate change estimate


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0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

total fertility rate

year

Birth rate has been low in Japan.

Transition of total fertility rate in 8 countries

SourcesVital Statistics(Japan), Births and Deaths in England and Wales, 2011(UK, Bilan demographique(France)*provisional date in2011, Statistisches Bundesamt(Germany) StatisticsSingaporeSingapore, Demographic indicators(ItalySummary of Population Statistics(Sweden), National Vital Statistics Reports(USA), Birth and Death Statistics in 2011(R.O.Korea)

Japan

US

France

UKSweden

Germany

Rep. of

Korea

Singapore


6/34

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

64 65

ten thousand) Population of Japan (result and estimated number)

Source:Until 2010: Ministry of Internal Affairs and Communications National CensusAfter 2015: estimation by National Institution of Population and Social Security Research in January, 2012.

Labor force may continue to decreasedue to declining birth rate and aging population.

Result number Estimated number

Under 64 65 and over


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0

10

20

30

40

50

60

70

80

90

15

19

20

24

25

29

30

34

35

39

40

44

45

49

50

54

55

59

60

64

65

(

employment rate and potential labor forceparticipation rate2010

0

10

20

30

40

50

60

70

80

90

15 to

19

20 to

24

25 to

29

30 to

34

35 to

39

40 to

44

45 to

49

50 to

54

55 to

59

60 to

64

international comparison ofemployment rate2009

(note) For USA and Sweden, 15 to 19 means 16-19.

Source: OECD Database "LFS by sex and age"http://stats.oecd.org/

pouilation (age of 15 and over)

employeesthe unemployedthose who want to work

Source: Ministry of Internal Affairs and Communications Labor Force Survey FY2009

Potential labor force of women can be exploited.

USA

Italy

Sweden

Republic f Korea

Japan

Employment rate

Potential labor

force participation

rate

& over

(note) potential labour force participation rate


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Number of part-timersNumber of NEETs

8

Promoting the employment of young people

(NEETs, part-timers) is essential.

117 119 115 104 95 89 83 87 86 81 83

91 98 99

97 92 9287 91

9793 93

208217 214

201187 181

170178 183 174 176

0

50

100

150

200

250

14 15 16 17 18 19 20 21 22 2223

10 thousand

year

12 11 10 9 10 9 9 10 9 9 9

17 16 18 16 17 16 16 16 15 15 15

18 18 19 20 18 18 18 1817 16 18

17 18 18 19 18 18 19 1817

17

18

0

10

20

30

40

50

60

70

80

14 15 16 17 18 19 20 21 22

22

23

10 thousand

64 64 64 64 62 62 64 6360 57 60

25

34

15

24

15

19

20

24

25

29

30

34age]

[age]

Source: Ministry of Internal Affairs and Communications Labor Force Survey

notepart-timers are. male graduates and female graduates (especially unmarried) in their age of15-34 and dont engage in houseworknorcommute to schools, also satisfy one of conditions below.

employees who are called part-timer in their workplace. unemployed persons who are seeking job as part-timers. persons who are hoping to work as part-timer among non-labor force population

note2223are numbers without Iwate Pref., Miyagi Pref. Fukushima Pref.noteNEETs are those of 15-34 among non-labor force and dont engage in housework nor commute to schools


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The desire to work of elderly people is strong.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Until what age do you want to work?

people of 60 and over

As long as I can work

About 90 % want to work after the age of 65

Over76 years

old

Until about 75

years old

Until about

70 years old

Until about

65 years old

Until about

60 years old

Source: Cabinet Office2008

survey of men and women who are 60 years old and over=3,293


10/34

Source: .Stat Extract LFS by sex and age(July, 2008)Percentage of employment(6064 years old = employees who are 6064 years oldpopulation of 6064 years oldPercentage of employment(65 years old and overemployees who are 65 years old and morepopulation of 65 years old and more

70.8

57.3 57.2

16.6

41.2

28.9

64.467.5

41.0

46.6

32.7

14.8

24.9

10.6

56.8

43.2

0

10

20

30

40

50

60

70

80

male

female

29.9

19.8

9.9

2

5.3 6

15

42.5

12.912.2

4.4

0.92.5

1.2

7.4

23.3

0

5

10

15

20

25

30

35

40

45

Percentage of employment

years old)

Percentage of employment

years old and over

Baby-boom generation is expected

to perform in labor market.


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Economic growth and promotion of labourparticipation are essential.

A simulation of employed population until male and female )

Sources:2010 result number: Ministry of Internal Affairs and Communications Labour Force Survey, 2020,2030 estimate: by National Institute of Population and Social Security research

Estimations are by The Japan Institute for Labour Policy and training.

when economic growth and labour participation will be progressed properly: high growth will be achieved under Japan Revitalization Strategy and labour participation will be progressedwhen economic growth and labour participation will NOT be progressed properly: economic growth will be progressed to some extent until 2015,. But after 2016, economic growth will be zero and labour

participation will not be progressed from 2010.

60 and

over

3059

1529

(result number)

When economic growth

and labour participation

will NOT make good

progress



will make good progress



will NOT make good

progress



will make good progress

62,980,000 59,370,000

(3,610,000)62,890,000

(90,000)

54,530,000

(8,450,000)60,850,000

(2,130,000)

About 1,600,000

increase

About 1,400,000

increase

About 500,000

increase

About 3,500,000

increaseAbout 6,300,000

increase

About 2,900,000

increase

About 2,500,000

increase

About 1,000,000

increase


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Overseas business development of Japanese

companies has increased.

0

5,000

10,000

15,000

20,000

25,000

9899000102030405060708091011

ASEAN4 NIEs3

companies Local subsidiaries of Japanese companies (by region)

Source: Ministry of Economy, Trade and Industries)

98 99 00 01 02 03 04 05 06 07 08 09 10 11

(fiscal year)

North

America

Mid,

south

America

PRCMid-

EastEurope Oceania Africa Others


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The range of acceptance is decided as Status ofResidence in consideration of the effects onJapanese industry and public welfare.

Employment is promoted in Professional or TechnicalFields to strengthen international competitiveness.

There is no quota, nor economic needs test forforeigners. (Open regime)

Basic policy of Japan for accepting foreigners.


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Aiming to work

-Professional or Technical Fields

about124,000

Entering or Residing on the Basis of

Their Status or Position

about309,000

Designated Activities including EPA)

about7,000

Activity other than that permitted under

previous status

ex, part-time work of student

about108,000

Training and Technical Internship Programs

about134,000

Source: Notification of Employment of Foreign Nationals ( at the end of Oct. 2012)

Each company shall, where he/she has newly hired a foreign national or a foreign national whom he/she employed has separated from service, make a notification of the foreign nationals name, status of

residence, period of stay and other matters to the Ministry of Health, Labour and Welfare. (Foreign nationals with status of residence Diplomat Officials or Special Permanent resident are excluded) .

Professionalor Technical fields

Status of Residence Examples

EngineerMechanical engineer,

System engineer

Specialist in Humanities

White-color worker

(Planning, sales, accounting etc.)

International ServiceTeacher in language school

Translator, interpreter, designer

Intra-company TransfereeTransferee from overseas company(those who fall within the scope of

Engineer or Specialist in Humanities/

International Service)

Skilled LaborCook in ethnic restaurant, architect,

pilot, sport instructor

Professor University professor

Investor, BusinessManager Manager of foreign-affiliated company

Legal, Accounting Lawyer, accountant

Medical services Doctor, dentist, nurse, pharmacist

ResearcherResearcher in company,

governmental organization

InstructorLanguage teacher in high school andjunior high school

Categories of foreign workers in Japan

Status of Residence

14


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Language ability

Approach to foreign markets

Knowledge about foreign business cultures

Developing new product or service which satisfies the needs of

overseas customers

Leadership in global business

Abilities required for highly skilled foreign workers

Companies are seeking personnel

who can be a bridge between

regional headquarter in Japan and

overseas markets.


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The number of foreign workers in

professional or technical fields has been increasing.

44,496 44,943 47,68255,276 57,323 61,763

67,291 69,395 68,467 67,854 69,721

20,717 20,807 23,21029,044

35,13544,684

52,273 50,493 46,59242,634

42,27356,067 55,16456,490

59,76965,261

71,610

78,940 82,042 82,921 89,783 88,146

121,280 120,914127,382

144,089

157,719

178,057

198,504 201,930 197,980 200,271 200,140

14 15 16 17 18 19 20 21 22 23 242002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

others

engineer

Specialist in

Humanities

/international

service

The number of alien registrations in professional or technical fields was 200,140 .(Dec 2012) 170% increase from 2002

others are those who have other status of residence for work excluding diplomat and official.(Source: Ministry of Justice, 2012)


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Economic situation has a great influence on

the number of foreign workers.

(Source: Ministry of Justice, 2012)

-4

-2

0

2

4

6

8

10

12

14

-4

-2

0

2

4

6

8

10

12

14

15 16 17 18 19 20 21 22 23 24

engineer

Specialist in

Humanities

/international

service

The rate of change( from previous year) in the number of foreign workersin professional or technical fields

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

others

total

Global

financial crisis

The Great East

Japan Earthquake


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-5000

0

5000

10000

15000

20000

25000

-100 0 100 200 300 400 500

(employee per company)

(number of company)

4 0 %

noteBlue indicates companies with 19 employees. Red indicates companies with 10 and more employees.Size of circles indicates the number of foreign workers.

6 0 %

Distribution of foreign workers

A few companies are eager to employ foreigners.


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4747

10007

3129 35274261

1220 1157 1220 798

7720

22097

7768 9338

13810

5694

6051

13069

14410

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

(number of companies) (number of employees)

Number of companies and foreign workers by size of company)

Number of

companies

Number of

employees

It is important to promote recruitment in big companies.

(Source: Ministry of Health, Labour and welfare,2012)


20/34(Source: Japan Student Services Organization, FY2011 )

The number of foreign students has increasedby 1.8 times in 10 years.

students

Government-sponsored

Privately-founded

Dispatched by Inter-governmental

agreement

Total number of foreign students

(in further education institutions)

83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

(fiscal year)


21/34

Employment of foreign students in Japanesecompanies declined after economic crisis.

Source: Ministry of Justice, 2011

Change of Status of Residence from College Student

for Employment Purposes

application

permission

No permission

(people)


22/34

Not all foreign students who desire to work in Japanare actually employed.

49.6%52.2%

4.2%

27.8%

8.5%7.2%

5.7%

1.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Desirable life path after graduationmultiple answers

(Source: Japan Student Services Organization, FY2011)

foreign students who

graduated from

universities:

37,898 people.

graduated during2011FY

Employed in JPN7,91020.9Continue to seek for a job in JPN4,67812.3

(Source: Japan Student Services Organization, FY2011)

Only about 40 %

of job seekers areactually

employed.

A B C D E F G HA: advance on to school in JPN

B: find job in JPN

C: advance on to school in home country

D: find job in home country

E: advance on to school in 3rdcountry

F: find job in 3rdcountry

G: not decided

H: unknown


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Humaniti

es,

20.4%

Social

science,

39.3%

Science,1.6%

Engineeri

ng,

16.9%

Agricultu

re, 2.3%

Health

care,

2.2%

Domestic

Science,

2.1%Educatio

n, 2.4%Arts,

3.3%

Others,

9.4%

Foreign students by their major

n=137,756)

Source: Japan Student Services Organization, FY2012

Mismatch between job offer and job search

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 991: Humanities(literature, history, philosophy)

2: Humanities(foreign literature)

3: Social science(politics, economics, sociology)

4: Social science(law, accounting)5: Engineering (mechanical, electronic)

6: Engineering(electronic communication)

7: Engineering(civil, architecture)

8: Engineering(others)

9: Science(mathematics, chemistry, biology, physics, earth science)

10: Agriculture

11: Health Science

12:Domestic Science

13: Education

14: Others (Social science and humanities, human relationship)

15: Others(international affairs)

16: not especially 99: no answer

Manufacturing

industry

Non-Manufacturing

industry

total

From what major do you want to employ foreign students?

(by industry)

Source: Career Gateway to Asia program, 2011)


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77.0

33.0

13.6

7.34.2 6.3 6.3 3.1

14.1

35.6

15.7 14.117.8

15.2 13.69.9 7.3 10.5

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

()

present and future of highly-skilled professionals

India

Indonesia

Philippines

Nationalities of foreign employees at present

Nationalities of foreign employees that companies want to

employ in the future

Peoples

Republic of

China

62%

R.O.Korea

14%

Taipei,

China

4%

Viet Nam

3%

Nepal

2%

Bangladesh

2%

Srilanka

1%

Thailand

1%

Others

11%

Nationalities of foreign students employed

in Japanese companies

2011

Mismatch between job offer and job search

source: Ministry of Justice, FY 2011)

Peoples

Republic

ofChina

Rep.of.Korea

Taipei,China

VietNam

Thailand

US

Source: Career Gateway to Asia program, 2011)


25/34

Promoting acceptance of foreign students

Plan for 300 000 Exchange Students

Promoting employment of highly skilled professionals and foreign

students Initiatives of Employment Service Centers for Foreigners

Career Gateway to Asia Program

Promoting acceptance and adaption of highly skilled professionals

Points-based preferential treatments

Promoting foreign investment in JapanPromoting acceptance ofglobal enterprises

Japan as a Asian business center

Approaches to accept highly skilled professionals


26/34

Japanese government hopes to boost the number of foreign

students to 300,000 by 2020. (Decided in July, 2008)

Approachesraise interest among international students in studying Japan

make changes in the current system of entrance exams, enrollment, immigration

Facilitate globalization in Japanese higher education

create good conditions for students to concentrate on their studies

support employment after graduation

Governmental ministries(MOFA,MOJ,MHLW,METI,MLIT,MEXT)

have worked together to achieve these measures.

Further development (from April,2014)identify target countries and areas ()and allocate coordinators

coordinators will collect and disseminate information and create human network between

local universities, related organizations to secure advanced overseas resources

target countries and areas: ASEAN, Russia, Africa, Middle-East, Southwest Asia, East-Asia, South America, US,Middle and Eastern Europe

Plan for 300,000 Exchange Students

I iti ti f


27/34

Employment Service Centers for Foreigners:

public employment office specializing in providing job counseling and placement services for non-Japanese

(in Tokyo, Osaka, Nagoya, Fukuoka)

Job counsellors specializing in employment of foreigners and interpreters are allocated to supportforeigners who are seeking jobs in Japan

Initiatives areful support of foreign students job seeking through nation-wide network of employment securityoffices until their graduation

Cooperation with universities in finding students who have yet to get job offers giving guidance to

foreigners hoping to work in Japan in their earlier grade.

Arrangement of internship and employment interview between foreign students and companies to

promote mutual understanding

.Further Development ooperation with Employment security offices specializing

in employment of new graduates in developing job offering

and arranging internship employment interview etc.

Initiatives of

Employment Service Centers for Foreigners

Employment interview held by

Osaka Employment Service Centers for Foreigners

A ti t l t d i di id l h b


28/34

Career Gateway to Asia programApril,2007March,2013

In collaboration between industries and universities, development of advanced overseas

human resources has been promoted.

seek and choose foreign students in Asian countries provide students with specialized education, Japanese language and Japanese business employment-support

provide Japanese companies with human resources who work toward global expansionand innovation

Accepting talented individuals who can bebridges between Japan and Asian countries

Support for Internship

Training in Japanese business

language and Japanese business

Asia

universities

Japan

universities

companies

Nationally

endorsed

scholarship

Industry -universities

consortiums

Managing entities

Specialized education

program

publicity

Study

abroad

Employment support

In 2 years

employment

Japanese

companies


29/34


Highly skilled

professionals

even if total points are under 70.

still possible to enter and stay in

Japan under the current framework

of Status of Residence

professor

Researcher

Investor/Business manager

etc.

P

oints re w rded ccording to pplic nts

nnu l s l ry c demic b ckground

profession l

c reer

rese rch chievement

etc,

qualifying score:70 points

recognized s highly skilled foreign profession ls nd

will be given preferential treatments

Introduced in May, 2012

to promote the acceptance of foreign nationals with

advanced abilities and qualifications who are

expected to contribute to Japans economic growth

and creation of new demand and employment

Improved in Dec,2013

points calculation tablecontents of preferential treatment

aim to dramatically increase the number of

highly skilled professionals

revised

Within professional or technical fields


30/34

preferential treatment in immigration procedures

Permission for multiple purpose of activities

Easing of requirements for permanent residence

Work permission for the spouse

Permission for domestic workers to accompany

the highly-skilled foreign professionals

Permission for the parent(s) to accompany

the highly-skilled foreign professionals

etc.



31/34

By attracting foreign companies and capital to Japan, there will be

the chance of an inflow of superior technologies and new

expertise.

To strengthen Japanese economy

To revitalize Asian economy

Promotion of Japan as an Asian Business Center


32/34

Targets

R&D bases

(gathering advanced researchers

indispensable for innovation)

Regional Headquarters

(gathering advanced managerial

talent indispensable for global

economic society)

Submission of business plan

Examination and Certification by competent minister

Support measures will be taken for global enterprises.

construction of high-value added bases in Japancreation of employment opportunitiesdevelopment of new products and technology in cooperation with SMEs

Act for Promotion of Japan as an Asian Business Center

Support measures as follows shall be taken for R&D business and regional headquarters

businesses that are newly conducted by global enterprises certified by the competent minister.

- Reduction of corporation tax

- Reduction of patent fees for the outcome of R&D businesses (only for SMEs), etc.

Expected effects


33/34

Arrangement of medical

institution with multilingual

service and medicalinterpreters

Expansion of Social

Security Agreement

Support for improvement

and arrangement of

accommodation

One-stop service for advice and

assistance in administrative

procedureSupport for language education

To create comfortable conditions

Improve educational environment

for childrenex. development of

international schools


34/34

progress of japanese policy on the acceptance of highly skilled human resources

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