Monday, November 7, 2011

Land of the wasted talent

This is a great article from the Economist and talks about the shrinking size of the labor force in Japan and the increasing proportion of female workers. 
Japans population of 127m is predicted to fall to 90m by 2050 and the ratio of working age Japanese to children and elderly to 1-1 from 7-1. In an economy where women constitute 50% of the population and are severely underemployed "outside the kitchen" either because they don't want to work themselves or they are not given much opportunity poses a big threat to an already troubled economy. Although Japan labor market is now less sexist, however representation of female workers is still very low because traditional employers still do not value them as they "see their role as prettifying the office and forming a pool of potential marriage partners for male employees". 
The question companies are now asking is how and where will they be able to find workers who are efficient energetic and talented? 
Will Japan be the next heaven for talented workers from the US and rest of the world?  

8 comments:

  1. If Japan is the next heaven, it will be a big relief for the US government because it will allow some of the unemployed resources to get jobs in international markets hence bringing down the unemployment rate of 9%. But again one can argue that this brain drain can be more harmful then useful.

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  2. Its sad to see deserving workers go unemployed or underemployed. However, this reduction in labor force will mean more capital per worker for the remaining citizens, and therefore a higher income.

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  3. Japan is totally against Migration. Japanese people hate immigrants and that is why this has been the case with Japan for the past twenty years. Otherwise enough brown people would have gone there already.

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  4. I guess in next 10 years most of the talented brown people will go there after getting educated in countries like USA and UK.

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  5. Given the trend, in a decade of two more women would be employed in Japan, once more acceptance takes place. Hopefully, this will offset the decreasing labor growth.

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  6. Saar, I agree with your comment to a large extent. Japan is very closed when it comes to migration both into and out of the country. So, as for it acting as a source to relieve the unemployment levels here I would not expect too much of a change.

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  7. Japan's closed-minded attitude towards immigrants is something that will not be sustainable as the 21st century continues. It will be important for Japan to being to open their doors to more immigrants in the future to sustain their own economy. Jobs move around the world now, not just around a country, and a market cannot be sustained without this mobility.

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  8. I think japan is underutilizing their women when they can be productive within their labor force. If you have workers that are willing to work why not let them? They will produce and help your company.

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