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
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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)
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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
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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
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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
When economic growth
and labour participation
will make good progress
When economic growth
and labour participation
will NOT make good
progress
When economic growth
and labour participation
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)
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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)
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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)
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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)
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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
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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
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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
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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
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Points-based preferential treatments
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
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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.
Points-based preferential treatments
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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
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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
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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
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