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What YGCC is Reading #573
When “Japanese First” Threatens Japan’s Future

Japan’s aging population and labor shortages have made foreign workers essential to its economy, particularly in industrial hubs like Toyota City, where 5% of residents are immigrants from 76 countries. However, rising anti-immigrant sentiment, fueled by the far-right Sanseito party, now threatens this dependence. Founded just five years ago, Sanseito captured 15 of 248 upper house seats in 2024, campaigning on “Japanese First” slogans. Despite a shrinking population (down 900,000 in 2024) and record foreign residency growth (+350,000), opposition to immigration is mounting. Immigrants, such as Vietnamese and Brazilian factory workers, face cultural isolation and limited citizenship opportunities; non-Japanese comprise only 3% of Japan’s population. The government plans to replace its criticized “technical trainee” program by 2027 with a system offering potential long-term residency. Without foreign labor, sectors like elder care, with four vacancies per applicant, could collapse, underscoring Japan’s dilemma between demographic necessity and nationalist resistance.
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How will the 2027 abolition of the trainee program reshape Japan’s labor market composition?
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Should Japanese corporations invest in overseas training or automation to offset domestic labor shortages?
Read more from Bloomberg.
Image adapted from Bloomberg.