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First batch of Indian caregivers head to Japan amid worker shortage woes
The first group of Indian nursing care workers trained by a subsidiary of Japan's Sompo Holdings is set to begin work in Japan next month, Nikkei Asia reported on Wednesday.
The initiative is the result of a training partnership between Sompo Care and India's National Skill Development Corporation (NSDC) that helps address Japan's labour shortages and ageing population.
In August last year, Sompo Care launched a specialised training centre near New Delhi. The centre offers a nine-month programme that includes Japanese language instruction and practical training using care equipment imported from Japan. The initiative aims to train and deploy 100 Indian caregivers annually, with the objective of hiring 1,000 workers by 2040.
In April, the first nine trainees graduated from the programme. Eight passed Japan's 'specified skills' test, qualifying them for residency and employment. They are expected to begin work at care facilities in Japan as early as July.
Sompo Care has ensured that the Indian recruits will be paid on par with their Japanese colleagues, adding that those who excel may be promoted to management roles.
Sompo Care, which previously hired from Southeast Asia, is now shifting focus to India due to growing competition for talent in the region. India's younger, more abundant workforce—and its high youth unemployment—makes it a promising source for overseas recruitment.
Japan: Ageing population, shrinking workforce
As Japan grapples with an ageing population and a shrinking workforce, projections suggest a shortfall of around 570,000 nursing care workers by 2040.
Japan's ageing population is straining its labour market, forcing reforms to retirement norms. In 2013, Japan amended the Act on Stabilisation of Employment of Elderly Persons (ASEEP), making companies to offer employment until age 65, through raised retirement age, rehiring, or continuous-employment schemes. They are also encouraged to extend opportunities up to age 70.
A 2023 survey by the labour ministry found that 42 per cent of companies allow staff to work until 70 or beyond, more than double the percentage from ten years earlier. In 2024, 5.4 million people aged 70 or older were still employed, a 70 per cent increase since 2014.
Labour shortages are especially severe in sectors like nursing care and construction, where older workers make up a growing share of the workforce. People aged 65 and above now account for 14 per cent of all workers in Japan, and up to 17 per cent in the hardest-hit industries.
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