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First Post
17 hours ago
- Business
- First Post
While West clamps down on immigrants, Japan welcomes them as blessing for economy
Japan's foreign resident population stood at about 3.7 million at the end of last year, up 11 per cent from the previous year. Unlike Western nations who are alarmed by such trends, prominent economists think this would be ideal for fiscal health read more People make their way at Ameyoko shopping district in Tokyo, Japan, May 20, 2022. REUTERS/Kim Kyung-Hoon/ File While many Western nations are tightening immigration policies, Japan is taking a markedly different approach. In a country grappling with a rapidly ageing population, Japan increasingly sees the rise in foreign residents as a blessing, not a burden. A recent survey by Nikkei and the Japan Center for Economic Research asked 47 prominent economists whether an influx of foreign workers would improve Japan's fiscal health. Two‑thirds (66 per cent) agreed, citing the tax and social insurance contributions of typically younger foreign residents and their role in easing labour shortages. STORY CONTINUES BELOW THIS AD Seventy-six percent also believed the standard of living for the average Japanese citizen would benefit, pointing to improved availability of goods and services, greater price stability, and productivity gains from workplace diversity. Japan's foreign resident population stood at about 3.7 million at the end of last year, up 11 per cent from the previous year, yet still comprises only 3 per cent of the total population—far below the 11 per cent average among OECD countries. Why Japan welcomes immigrants Economists say Japan's situation is different because of its shrinking workforce and low birth rate. 'Greater acceptance of foreigners will boost the ratio of prime-age labour force and result in higher tax revenue and social security contributions,' said Hiroyuki Kasahara, a professor at the University of British Columbia. Research suggests competition between Japanese and foreign workers for jobs is limited. 'Empirical research has shown that foreign and Japanese workers primarily have complementary relationships and do not negatively impact the wages or unemployment rates of Japanese workers,' said Chiaki Moriguchi, a professor at Hitotsubashi University. Western backlash over migration By contrast, in many Western countries, public and political sentiment has shifted sharply against immigration. In a recent Gallup poll, 55 per cent of Americans in mid‑2024 said they wanted to see immigration reduced, marking the highest level since 2001. Many voiced concerns over economic competition, labour markets, and strain on public services. Though more recent polling shows sentiment has moderated, this reflected significant resistance to rising immigrant numbers. In the UK, the government has introduced a 'one in, one out' scheme limiting asylum seekers as public frustration mounts; media commentary suggests the political centre has shifted right, with mainstream leaders adopting tougher views previously held by fringe parties. Across Western Europe, 50–80 per cent of respondents in countries including Germany, Spain, the UK, Italy, Sweden, and France said immigration over the past decade has been 'too high,' with many deeming it detrimental. STORY CONTINUES BELOW THIS AD The European Union is increasingly adopting hardline policies, including moving to process asylum seekers in non‑EU countries, to manage public concern.
Nikkei Asia
a day ago
- Business
- Nikkei Asia
Economists welcome rise in foreign workers in Japan: Nikkei survey
TOKYO -- A Nikkei survey found that a majority of economists believe the increase in the number of foreign residents in Japan will enhance the country's fiscal balance, driven by their tax and social insurance contributions, and help to raise the living standards of the average Japanese citizen. Nikkei, in collaboration with the Japan Center for Economic Research, asked nearly 50 economists to form an Economics Panel in 2024. The economists were chosen based on their academic achievements and influence, taking into account their areas of expertise and the importance of diversity. The panel took up questions related to fiscal and financial issues, as well as Japan's policies regarding overseas nationals. Among the panelists, 66% agreed that an increase in the number of foreign residents in Japan could improve the nation's fiscal balance. They pointed out that having more young foreign workers will help alleviate labor shortages and that such workers will contribute significantly in terms of tax payments and social security premiums. Many panelists emphasized the importance of creating institutional frameworks to make it easier for foreign residents to live in Japan and to address their needs as they grow older. As of the end of last year, Japan had around 3.7 million foreign residents, an increase of 11% from the previous year. While many in Japan believe welcoming foreign workers is essential for the domestic economy, there are concerns that their presence may lead to competition with Japanese workers for jobs and could negatively affect civic order. Nikkei and the JCER surveyed 47 economists about whether increasing the number of foreign residents would improve the living standards of the typical Japanese citizen. The survey was conducted from July 18 to July 28. Seventy-six percent of respondents agreed that it would. Of these, 6% strongly agreed, while 70% agreed. Mari Tanaka, an associate professor of labor economics at the University of Tokyo, said, "An increase in foreign workers will help alleviate shortages of goods and services, as well as rising prices." Most of those surveyed predicted that competition for jobs between Japanese and foreign workers will be limited. Chiaki Moriguchi, a professor of comparative economic history at Hitotsubashi University, stated, "Empirical research has shown that foreign and Japanese workers primarily have complementary relationships [and] that [foreign workers] do not negatively impact the wages or unemployment rates of Japanese workers." Many economists emphasize the benefits of diversity in terms of raising economic growth. "New ideas introduced in workplaces [by foreign workers] can enhance productivity," said Taisuke Nakata, an associate professor of macroeconomics at the University of Tokyo. Concerns have been raised about how having more foreign residents may affect the fiscal balance, particularly welfare payments and nonpayment of social security premiums. However, the survey conducted by Nikkei and JCER revealed that 66% of respondents believe having more foreign workers will help Japan's fiscal balance. A significant proportion of respondents predict a positive impact on Japan's fiscal balance because foreign residents are mostly young. According to statistics released by the Ministry of Justice, people in their 20s and 30s made up 55.9% of all foreign residents in Japan as of the end of 2024. "Greater acceptance of foreigners will boost the ratio of prime-age labor force and result in higher tax revenue and social security contributions," said Hiroyuki Kasahara, a professor of international trade at the University of British Columbia in Canada. Motohiro Sato, a professor of public finance at Hitotsubashi University, added, "Many foreign residents are part of the working generation and contribute more in taxes and insurance premiums than they receive in benefits." Future institutional design will be crucial in determining whether the acceptance of more foreign workers contributes to the stability of Japan's economy and finances over the long term. Sato emphasized that Japan "needs to provide adequate education for foreign nationals' children, and ensure benefits for them in old age." At present, people born overseas make up 3% of Japan's population, while the average in OECD member countries is 11%. In many European countries and others with a long history of accepting immigrants, the costs associated with immigration, particularly the challenge of social integration of foreign residents, have become a concern. "To build a society where individuals from diverse backgrounds can coexist sustainably, it is essential to implement multicultural coexistence policies that include fiscal spending," said Yoshifumi Konishi, a professor of empirical microeconomics at Keio University, emphasizing the need to create long-term institutional arrangements. When the fiscal balance worsens, "paying the insurance premium in advance could be made a requirement for the issuance of resident status, similar to the case in Britain," said Toru Kitagawa, a professor of econometrics at Brown University. The Economics Panel program began in November 2024, with approximately 50 economists evaluating various policies. They respond to questions on topics such as fiscal and financial issues. The program conducts monthly surveys of panelists, who respond according to categories such as "I agree" or "I disagree."
Nikkei Asia
09-07-2025
- Business
- Nikkei Asia
Japan GDP growth rebounds to annualized 0.9% in May: JCER
A rebound in business investment in Japan contributed to an upturn in the economy in May. © Reuters Nikkei staff writers TOKYO -- Japan's economy grew at an annualized pace of 0.9% in May from the previous month, led by private-sector capital expenditures, according to an estimate released by the Japan Center for Economic Research (JCER) on Wednesday. The growth marks a sharp reversal from the previous month, when the Nikkei-affiliated think tank estimated that the economy contracted an annualized 0.7%. If the economic growth maintains the April-May pace, the nation's gross domestic product could rise by an annualized 0.9% in inflation-adjusted real terms in the second quarter of this year compared to the preceding quarter, JCER said.
Nikkei Asia
13-06-2025
- Business
- Nikkei Asia
AI robots will narrow China's GDP gap with the US, says think tank
TOKYO -- China will be the biggest economic beneficiary of robots equipped with artificial intelligence, narrowing the gap in real gross domestic product with the U.S. over the next three decades. But China may never grow larger than the U.S., economically, as it is likely to be bogged down by future population declines, according to a forecast by a Japanese think tank. In a long-term economic forecast released on Thursday, the Japan Center for Economic Research predicts that by the end of the 2050s, China's real GDP will be 3.5 times the size it was in 2024. The gap between the world's largest and the second-largest economy is forecast to be the smallest in 2057, with China's economy size reaching 89% of the size of the U.S.
Nikkei Asia
11-06-2025
- Business
- Nikkei Asia
Japan's GDP shrank an annualized 0.7% in April, JCER estimates
TOKYO -- Japan's economy shrank at an annualized 0.7% in April versus the previous month due to sluggish domestic demand and an increase in imports, according to an estimate released by the Japan Center for Economic Research (JCER) on Wednesday. The Nikkei-affiliated think tank said that if the economy remains at a similar level in May and June, real gross domestic product could fall by an annualized 4.2% in the April-June period compared to the preceding quarter.
