This review of Japan’s labour migration policy is the twelfth in a series conducted by the OECD Secretariat. This series responds to the growth in labour migration in many OECD countries and the likelihood that labour migration will continue to increase in the context of demographic ageing. In this light, the question of the effectiveness of labour migration policy, as well as its objectives, has become more prominent.
The central objective of labour migration policy is to help meet labour market needs which cannot be met through tapping domestic labour supply in a reasonable timeframe, without adversely affecting the domestic labour market and without hindering development prospects in vulnerable origin countries. Although the objective itself can be easily stated, specifying the criteria for assessing the success of policy in achieving it is a complex matter. It involves evaluating how well labour market needs have been identified and whether migration has had an impact on the labour market, both of which are analytically difficult.
This series of reviews addresses the question of whether labour migration policy is effective in meeting labour market needs without adverse effects, and whether the policy is efficient. To address these questions, this review aims to analyse two key areas: i) the labour migration system and its characteristics, in terms of policies in place and the labour migrants who arrive; and ii) the extent to which it is responding to the current and forecast needs of the domestic labour market, as well as any impact on the latter.
Japan faces a similar discussion as other OECD countries regarding effective labour migration policy, and it is in this context that Japan requested that the OECD, together with the National Institute of Population and Social Security Research, review its labour migration policy. Japan was long among the OECD countries receiving the lowest migration flows relative to population. However, the situation has changed significantly in the past few years. To counteract the impact of ageing on the labour force, Japan has introduced major policy changes in the governance of recruitment from abroad, as well as smaller scale policy innovations.
This review asks what the role of discretionary labour migration policy in the specific context of Japan should be, given the relatively low levels of immigration and the challenges linked to the demographic context, and identifies policy directions for the future.