Top 10 Industries with the Biggest Labor Shortages in Japan

Japan’s workforce is in desperate need of growth. Any Google search of Japan will bring up the problem sprouting up all across the island nation: The ever withering number of workers. The Japanese government is sowing the seeds necessary to solve this issue by attempting to bring in over 300,000 foreign workers with the new No. 1 type visa over the next five years.

 For those considering work in Japan, there’s a clear opportunity to transition into a fruitful new career in the industries being hit the hardest by the labor shortage. Below is a countdown of the top 10 industries in Japan in need of workers as of April 2019, using statistics from Teikoku Databank.

The number of available workers for the automobile industry is dirt low. Even Toyota, one of the biggest automobile manufacturers in the world, is struggling to find workers. When trying to recruit through a temp agency, they were told there were no workers to be found. Toyota has started to branch out with new policies in an attempt to keep their skilled workers, including the ability to relocate as needed. This is quite unusual in a country where it’s normal for people to have to quit their jobs in order to relocate if their spouse gets transferred to a new location. 

Those working in the Retail industry suffer from long hours, low salaries, few holidays, and an overabundance of temporary workers. The situation is so dire that it has become the target of a recent law aimed at improving working conditions in an effort to turn a new leaf and stimulate growth. 

Of the top ten industries lacking temporary or part-time workers, the retail industry holds four positions, including furniture stores, and pharmacies. As workers are in such high demand, young people can afford to plant their feet and say no to a job where they will likely to be overworked and underpaid. Consequently, fewer and fewer youths are choosing part-time work at places like convenience stores, supermarkets, and electronics stores.

8. Broadcasting

7. Restaurant Industry

Jobs here might look attractive at first, as places will advertise “no experience required.” However, there is an enormous learning curve. On top of that, there’s both a lack of clear directions from superious, and a fair amount of training, some restaurants requiring as much as three months worth. As this has caused a negative image of restaurant work to take root, fewer and fewer Japanese people are taking the jobs, allowing foreign residents to fill in the gap.

6. Rental and Leasing

This might be an unexpected one, but there is a shortage of people applying to be property managers. In 2016, over 60% were over the age of 60, and the number continues to climb. 

This industry suffers from what Japan calls the 3Ks (kitsui, kitanai, kiken), but what we can call 3D: difficult, dirty, and dangerous. For many in Japan, taking care of cleaning and overall repairs whilst trying to weed out problem clients is not an appealing position.

3. Drivers

With online services putting down roots in every major city, it’s easy to imagine an increase in demand for truck drivers. It’s hard to watch YouTube without seeing at least one commercial for UberEats, Rakuten, and Amazon. Some suggest that a road traffic law passed in 2007 is to blame, as it gave stricter requirements for driving trucks over a certain weight class. The difficulty in acquiring the proper licenses could also account for the steady decline. 

Taxi drivers are also in high demand as need increases with record amounts of tourists swarming Japan. 

2. Agriculture

In Japan right now, 70% of farmers are aged 65 and older. Analysts believe the difficulty in getting started in this industry could be one of the reasons less young people are going into the trade. New farmers are buried in expenses. Rice farms may have to put down as much as 690,000 yen before they can even begin to try and make a profit.

1. Information Technology

Finally, we’ve hit rock bottom. As the IT industry continues to blossom in our technology-forward world, the well of available workers continues to dry out. Statistics say by 2030, Japan could have a shortage of as many as 790000 people in this industry. The demand is ever increasing and technologies ever changing, requiring more training. 

With the heavy lean towards cloud-based services, a job shortage could easily be attributed to increased demand; but Japan has a few more issues causing a lack of new workers. Japan does not have a lot of independent contractors in the IT world. The current business model has salaries of entry level engineers decreasing as middle-level positions increase. With long hours, difficult work, and low salaries, it’s no wonder many young Japanese people are giving these jobs a wide berth.