Letting Foreign Workers Past the Gate

One aspect of globalization is freer employment across national borders, including Japan's borders. Although foreigners are increasingly becoming important members of the nation's labor force, by and large, the job market here remains effectively closed to them. Yet foreign employment looks set for a gradual increase in the long run.

Already many foreigners are working in restaurants, factories, hospitals and various companies; they are also to be seen in provincial areas such as fishing ports and farming villages. Many also live in housing developments. It is also true that many are working without permits, or they are overstaying their visas. Their number is estimated at 220,000. This means that roughly one in three foreigners is an illegal worker or resident. Not a few such people, statistics show, end up committing crime, although their number represents a fraction of the total.

In 2003, foreigners were arrested on criminal charges in more than 27,000 cases, according to the latest report from the National Police Agency. The number of reported felony cases, such as robbery and murder, showed an increase. While this is disturbing, one should not jump to the conclusion that illegal workers and residents are prone to crime. The fact is that the percentage of foreigners or illegal residents in Japan has not risen as rapidly over the past decade as the rate of increase in the total number of people, including Japanese, arrested on criminal charges. It is a gross generalization to associate illegal residents directly with criminality.

The large presence of illegal residents reflects in part the closed nature of the labor market for non-Japanese workers. Their number certainly would be reduced if the government adopted a more inclusive labor policy for foreigners. An exclusive policy goes against the trend of globalization.

Japan faces continued criticism of its "closed-door" policy from Asian countries seeking to expand economic exchanges with this country. The government is currently negotiating a free trade agreement, or FTA, with South Korea, Thailand, the Philippines and Malaysia. Earlier this month, Tokyo reached a basic agreement with Mexico. For the negotiations to succeed, Japan needs to open its market wider, despite stiff resistance from domestic interests.

Opening the labor market, however difficult, is considered a necessary condition for this nation to play a leading role in the economic development of Asia, one of the world's fastest-growing regions. In principle, the government welcomes foreigners who possess high levels of knowledge and experience, but it is opposed to the entry of unskilled workers. In reality, though, the door is virtually closed to skilled workers and professionals as well. For example, foreign doctors must obtain a Japanese license to practice here. The same is true of nurses, midwives, caregivers and child-care specialists.

To be sure, accepting foreign workers at a time of high unemployment is no easy task. But in the long run, increased foreign employment seems inevitable given the future prospect of chronic labor shortages resulting from the rapid aging of the population. Demand for skilled workers is bound to increase in labor-intensive service sectors, including those related to health and nursing care.

Although Japan is not sitting on its hands, it is not doing as much as it should. In Kobe City's deregulated zone for health care, for example, the government has approved extended stay for foreign researchers. But without assurances of reasonably comfortable living conditions, the researchers may find it unattractive to continue their work.

Temporary service is a convenient way of hiring workers to meet selected needs for a specified period of time. However, Japanese companies are not allowed to sign contracts with overseas temporary service agencies. Asian countries such as Thailand and the Philippines -- which have a large reserve of skilled and semiskilled labor -- are calling on the government to lift the restrictions in this area.

Japan can learn from experience in European countries, where the door is open to skilled workers and, to a lesser extent, unskilled workers. Germany, for example, has a "green card" system that permits easy entry for information-technology specialists. The mutual licensing of professionals, such as doctors, is common practice in the European Union. Britain allows in baby sitters.

The basic lesson is that Japan should be more receptive to foreign workers. The door needs to be opened gradually, though, in ways that do not cause serious disruptions. We should also take a broader view of foreign employment: It will add diversity to Japanese society.