Japan’s bid to lure foreign workers will be restricted

Significance Although government efforts including a new visa programme and intern programme have contributed towards rising inflows of foreign workers that have partially eased labour shortages, social, cultural and economic factors continue to limit immigration. Impacts More foreign workers and competition with other countries to attract and retain them will raise wages and inflationary pressures. Eased labour shortages will encourage multinational companies to invest in Japan. Rising demand from overseas workers will drive imports of goods and services. An outflux of workers to Japan and other developed countries will curb growth in Asian economies including Vietnam and the Philippines.