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Japan, known for its rich cultural heritage, technological advancements, and economic prowess, is facing a formidable challenge in the form of a labor shortage. The aging population of workers has created an urgent need for foreign labor and international companies to bolster the workforce, particularly in the healthcare sector. Japan also recognizes the vital role of technology in healthcare and in sustaining its position as the world’s third-largest economy.
In this blog post, we will explore how the Japanese government is actively encouraging foreign workers and international companies to address the labor shortage, particularly in healthcare, and the crucial role of technology in mitigating the stress on the healthcare sector and ensuring the continued economic growth of Japan.
I. The Aging Population and the Labor Shortage Dilemma:
Japan has been grappling with the repercussions of an aging population for several years. The low birth rate and increased life expectancy have resulted in a significant demographic shift, a rapidly increasing elderly population resulting in a dwindling workforce.
According to the Ministry of Internal Affairs and Communications, 28.9% of Japan’s population is over the age of 65, posing significant challenges for the nation’s labor market and its healthcare industry. Japan has been adopting measures to attract foreign workers to alleviate the pain points of the demographic shift, leading to ample opportunity for international companies.
In addition to foreign workers, Japan recognizes the importance of international companies in stimulating economic growth. The government has taken steps to create a favorable business environment, offering incentives and support to foreign companies looking to establish a presence in Japan. By attracting international investment, Japan aims to boost job opportunities, diversify the economy, and foster innovation, particularly in healthcare.
II. The Japanese Government’s Initiatives
The strain on Japan’s healthcare industry is particularly pronounced, as elderly citizens require increased medical care and support services. To address this growing demand, the Japanese government has launched several targeted initiatives to encourage foreign workers and international companies to contribute to the labor force, healthcare sector, and economic growth. These initiatives focus on facilitating the entry of foreign workers, streamlining administrative procedures, and fostering an inclusive society. Some include:
• Expanding Visa Programs
To address the labor shortage, Japan has expanded its visa programs to attract skilled foreign workers. The Technical Intern Training Program, for instance, allows foreign nationals to acquire specialized skills while working in Japan. The Specified Skilled Worker Program, on the other hand, offers foreign workers the opportunity to fill specific roles in industries facing labor shortages, especially healthcare. While the Nursing Care Skills Certification System “is designed to diffuse quality nursing care at nursing sites by forwarding Certified Nurses who can provide high-level nursing practice”.
• Streamlining Administrative Procedures
Recognizing the need for efficient administrative processes, the Japanese government has taken steps to simplify visa and work permit applications for foreign workers. By reducing bureaucratic barriers, Japan aims to attract skilled professionals and facilitate their integration into the workforce to become Asia’s biggest startup hub.
• Promoting Social and Cultural Integration
Creating a welcoming and inclusive society is crucial for the successful integration of foreign workers. The Japanese government has implemented various measures to support social integration, including language training programs, cultural orientation, and community support services. By promoting social cohesion, Japan strives to foster a sense of belonging among foreign workers and their families. (For more insights on the importance of cultural awareness, watch this interview.)
III. Technology: Driving Sustainability in the World’s Third-Largest Economy
While foreign workers and international companies play a vital role in addressing Japan’s labor shortage, technology emerges as a key component in sustaining the healthcare sector and the nation’s economic growth. Japan’s rich history of technological innovation positions it well to leverage advancements in various fields.
• Automation and Robotics
Automation and robotics have become increasingly prevalent in Japan’s labor market, particularly in industries experiencing severe labor shortages. From manufacturing to healthcare, robots are assisting workers, enhancing productivity, and filling critical gaps in the workforce. As an example in healthcare, robotic devices aid in patient care, perform surgical procedures, and provide companionship to the elderly alleviating the labor shortage in this industry.
• Artificial Intelligence (AI) and Big Data
Japan recognizes the immense potential of artificial intelligence and big data analytics in driving economic growth and transforming industries. AI-powered technologies are revolutionizing healthcare diagnostics, financial services, transportation, and many other sectors. By harnessing the power of AI and big data, Japan aims to improve efficiency, optimize resource allocation, and create new business opportunities. According to this article from the Journal of Intensive Care, The Advent of Medical Artificial Intelligence: Lessons from the Japanese Approach (2020), Japan is well positioned to lead the field of medical artificial intelligence given its AI-literate workforce and training programs, experience with AI in industry, combined with the dire status of the healthcare sector.
• Other Promising Technological Solutions in Healthcare
Japan recognizes the immense potential of artificial intelligence and big data analytics in driving economic growth and transforming industries. AI-powered Remote healthcare monitoring, telemedicine platforms, wearable devices, smart home tech, digital nutrition, and cognitive health support are growing industries in Japan as these innovations will alleviate the pressure from in-person hospital visits, mitigate the labor shortage in healthcare, and allow family members to resume work rather than take on caretaker roles.
SUMMARY
While Japan addresses its most pressing challenges, the government recognizes the transformative power of technology in healthcare with automation, AI, and other digital transformation sectors and how it plays a role in broader economic growth. Japan is poised to navigate its demographic challenges while embracing technological innovation and securing its economic future.
But the opportunities for foreign companies in Japan remain clear. If your company sells healthcare products or services or technology that may support the aging population, do not delay in conducting in-depth market research to determine where the growth opportunities exist for your business.
To discover whether Japan is the right market to grow your business globally, contact us today. If you’re not yet operating internationally, take this free global readiness assessment and receive a free evaluation of your organization’s readiness.
Jun 10, 2023
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