Japan's Economy
Robots, Immigration and a Shrinking Workforce
How Japan copes with a falling working-age population through automation, older workers and cautious opening to foreign workers.
Japan’s population has been falling since around 2010, and its working-age population is shrinking faster.
Labour shortages
Sectors like care, construction, logistics and restaurants struggle to find workers.
Responses
Automation
- Japan is a leader in industrial robots.
- Robots and machines in care homes, restaurants and convenience stores.
Older workers
- Many Japanese work into their late 60s and 70s.
- Companies raised retirement ages.
Women
- More women joining the workforce (see next lesson).
Foreign workers
- Japan traditionally limited immigration.
- The Specified Skilled Worker visa (2019) opened sectors to foreign workers.
- The number of foreign workers passed 2 million in 2024, a record.
Challenges
- Social acceptance of immigration.
- Productivity in services remains low.
The convenience store
A Tokyo convenience store uses self-checkout machines, hires a retired man in his 70s part-time and employs students from Vietnam and Nepal.
Thinking Japan bans foreign workers
It has gradually opened, with foreign workers passing 2 million in 2024.
Key takeaways
- Japan's population has been falling since around 2010.
- Labour shortages hit care, construction and services.
- Automation, older workers and women fill gaps.
- Foreign workers passed 2 million in 2024.
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