Is Japan Discarding Foreign Workers?

In 2008, 258,498 foreigners lived in Japan on long-term residency visas [1], which allow descendants of Japanese citizens (Nikkei) and their families to live indefinitely in Japan [2].* As the economic outlook darkened in the fall of 2008, many of these visa holders lost their jobs. In response, the government began a program in April 2009 offering unemployed Nikkei residents 300,000yen, plus 200,000yen for every dependent family member, towards airfare to return to their home countries [3]. This program originally forbad aid recipients from returning to Japan indefinitely, but in face of harsh international and domestic criticism, the Ministry of Health Labor and Welfare reduced the limit to three years in May 2009 [4]. As of December 1, 2009, 16,460 people had applied for the payment [5].

The Japanese government argues that the program is merely one plank in the support platform for Nikkei Japanese, including counseling and retraining programs, and that the primary motivation is the welfare of those who might want to return to their home countries to ride out the economic crisis. On the other hand, many immigrants, researchers, and advocates deride the plan, claiming that companies and the government used foreign workers during good economic times, and are merely discarding them in bad [6].

Claims that the program is solely for the benefit of the Nikkei residents are obviously suspicious. The government must expect to save money on returnees—subsidized public health insurance, welfare, and unemployment benefits could easily run much higher than the cost of return airfares, even in the short term [7].

But to what extent is the program humanitarian as well as pragmatic? For Nikkei desperate to return to their home countries, the economic assistance is no doubt welcome. However, we must ask why this program applies only to Nikkei visa holders, and not to foreign workers in other visa categories. Unlike other visa categories, the long-term resident visa allows holders to remain in Japan indefinitely, regardless of employment status [8]. Most work visas for foreigners become invalid if the holder is unemployed for a certain length of time. Were the main goal of the program humanitarian, it should logically be extended to all unemployed foreign workers. Because it targets only those who might choose to stay in Japan, we can only conclude that the primary motivation is fiscal, and that the government is indeed attempting to “discard” long-term foreign residents.

*Vietnamese and Cambodian refugees are also covered by this visa category, although they make up only a small percentage of the total.

1. Ministry of Justice, Zairyuu Shikakubetsu Gaikokujin Tourokushasuu no Suii, July 2007 [cited 2009 October 19]; Available from: http://www.moj.go.jp/PRESS/090710-1/090710-5.pdf

2. Sakura International Legal Office, Teijuusha [cited 2009 October 19]; Available from: http://www.sakura-ilo.com/shikaku/teiju1.html

3. Ministry of Health, Labor, and Welfare, Nikkeijin Rishokusha ni taisuru Kikoku Shien Jigyou no Jisshi, March 31, 2009 [cited 2009 October 19]; Available from: http://www.mhlw.go.jp/houdou/2009/03/h0331-10.html

4. Igarashi, Makoto, Nikkeijin no Kikokushien Jigyou Sainyuukoku Seigen ha Gensoku 3nenkan, in Asahi Shimbun, May 5, 2009 [cited 2009 October 16]; Available from: http://www.asahi.com/politics/update/0511/TKY200905110259.html

5. Nikkei Burajirujin Kukyou Shoku Ushinai Seikatsu Hogo Shinsei ga Kyuuzou, in Asahi Shimbun, December 15, 2009 [cited 2009 December 17]; Available from: http://chubu.yomiuri.co.jp/news_top/090727_1.htm

6. Tabuchi, Hiroko, Japan Pays Foreign Workers to Go Home, in the New York Times, April 22, 2009 [cited 2009 October 22]; Available from: http://www.nytimes.com/2009/04/23/business/global/23immigrant.html

7. Nikeijin Shitsugyousha he no Kikoku Ryohi Shikyuu ni Sanpi no Koe, in Asahi Shimbun, April 12, 2009 [cited 2009 October 22]; Available from:

http://mytown.asahi.com/shizuoka/news.php?k_id=23000120904130001

8. Nagoya International Center, Ima Gaikokuseki Rodousha ha? NIC he no Soudan kara, in Chikyuu wo Kangeru, Volume 18, Winter/Spring, 2009 [cited 2009 October 22]; Available from: http://www.nic-nagoya.or.jp/japanese/kokusai_center_news/chikyu_wo_kangaeru/chikyu_wo_kangaeru2009_04.htm

Increasing Japan's Birthrate

Japan’s government is desperate to boost its sluggish birthrate (1.37 in 2008) [1], and relies heavily on financial incentives to do so. Today, I’ll discuss the lump-sum birth payment, which is one of several such programs. The government called a recent increase in the payment an “emergency response” to the low birthrate [2].This “emergency response” raises two important questions: how far will this one-time payment of 420,000yen per child go for expectant parents? And, more significantly, is financial support really the best way to raise Japan’s low birthrate?

The lump-sum payment fills a gap in Japan’s regular health insurance; because the health insurance system does not cover healthy childbirth, the Ministry of Health, Labor, and Welfare offers parents the lump-sum at the birth of each child. As of October 1, 2009 the government will pay up to 420,000yen to the medical establishment where the child was born. If medical bills are less than the upper limit, parents apply to receive the remainder; if costs are higher, the parents must pay the further costs out-of-pocket [3]. Prior to October 1, 2009, the maximum government payment was 380,000yen, and parents had to pay all costs out-of-pocket before receiving the government reimbursement.

While parents certainly appreciate the extra 40,000yen that they now receive per birth, the increase can hardly make a significant difference to most families. According to a poll conducted in early 2009, the average hospital charge for giving birth was 424,000yen. This means that the new rate covers, or almost covers, the fees associated with giving birth for many mothers [4]. However, the increase will not defray other costs of pregnancy, such as pre-labor doctor visits and other personal expenses, not to mention the money required to feed, clothe, and educate the child.

Adults of child-bearing age are hyper-sensitive to the economic burden of raising a child. A full 86% of the respondents to a government survey of childless adults said they wanted to have 2 or more children, but most of these also felt that they would be unable to have as many children as they would like [5]. Far and away, the number one reason for this was the financial difficulties [6].

The survey data also suggest the depth of these economic difficulties. 75% of the male and 81% of the female respondents indicated that an annual household income of at least 5 million yen is necessary to have even one child [7]. However, this income is far out of reach for many families. Japan’s median household income is less than 4.6 million [8] and because incomes rise with age, a significant proportion of those below the median must be young families.

This financial pictures indicates that financial incentives should be a key government tool to increase the birthrate, but the new 420,000yen payment does not come close to closing the yearly income gap for families at our below the median income; much more ambitious measures will be required to make a real difference.

1. Asahi Shimbun, 08nen Shusshouritsu 1.37, 3nen Renzokuzou Hadome ha Kakarazu , June 3, 2009 [cited 2009 October 14]; Available from: http://www.asahi.com/edu/kosodate/news/TKY200906030278.html

2. Ministry of Health, Labor and Welfare, Anshin shite Shussan wo shite itadaku tame, Shussan Ikuji Ichijikin ni tsuite ha, Ika no you ni Minaoshimasu 2009 [cited 2009 October 5]; Available from: http://www.mhlw.go.jp/bunya/iryouhoken/iryouhoken09/07-1b.pdf.

3. Shussan Ikuji Ichijikin no Shikyuukaku to Shikyuu Houhou ga Kawarimasu September 14, 2009 [cited 2009 October 5]; Available from: http://www.kyoukaikenpo.or.jp/8,24316,39.html.

4. Takahashi, Y., Shussan Hiyou, Heikin 42 Man En Saikou ha Tokyo, Saitei ha Kumamoto, in Asahi Shimbun. May 25, 2009 [cited 2009 October 13]; Available from: http://www.asahi.com/health/news/TKY200905230096.html

5. Ministry of Health, Labor and Welfare, Shoushiki ni Kansuru Ishiki Chousa Kenkyuu. 2004 [cited 2009 October 8]; Available from: http://www.mhlw.go.jp/houdou/2004/08/h0813-2/dl/12.pdf. Figure 4-6 p. 59.

6. Ministry of Health, Labor and Welfare, Shoushiki ni Kansuru Ishiki Chousa Kenkyuu. 2004 [cited 2009 October 8]; Available from: http://www.mhlw.go.jp/houdou/2004/08/h0813-2/dl/12.pdf. Figure 4-7-1 p. 60.

7. Ministry of Health, Labor and Welfare, Shoushiki ni Kansuru Ishiki Chousa

Kenkyuu. 2004 [cited 2009 October 8]; Available from:

http://www.mhlw.go.jp/houdou/2004/08/h0813-2/dl/12.pdf. Figure 4-8 p. 62

2. Ministry of Health, Labor and Welfare, Kaku Sedai no Shotoku Nado no Joukyou 2004 [cited 2009 October 13]; Available from: http://www.mhlw.go.jp/toukei/saikin/hw/k-tyosa/k-tyosa06/2-1.html .