Japan to face a shortage of nearly a million foreign workers by 2040, think tank warns

By 2040, Japan will need nearly one million more foreign workers to sustain 1.24% annual growth, says think tank.

Japan faces a shortage of almost one million foreign workers in 2040 if the government wants to achieve its economic growth goals as the population dwindles, an estimate from a state-backed think tank showed on Thursday.

At the current pace, 5.91 million foreign people will be working in Japan in 2040, almost one million short of the foreign workforce needed to sustain the targeted average annual growth rate of 1.24%, the Japan International Cooperation Agency (JICA)'s research arm said.

The number of foreign workers in Japan more than quadrupled in the past 15 years to 2.05 million, or about 3% of the entire workforce, as of October last year.

The government has expanded work visa permits to a number of blue-collar sectors and skilled jobs with easing public opinions on accepting the immigrant labour.

But with hurdles including the yen currency's weakening, conventionally low wages and human rights issues, Japan has to ramp up its efforts to stay competitive in the global race for talents, experts have said.