Japan’s foreign resident population stood at about 3.7 million at the end of last year, up 11 per cent from the previous year. Unlike Western nations who are alarmed by such trends, prominent economists think this would be ideal for fiscal health
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While many Western nations are tightening immigration policies, Japan is taking a markedly different approach. In a country grappling with a rapidly ageing population, Japan increasingly sees the rise in foreign residents as a blessing, not a burden.
A recent survey by Nikkei and the Japan Center for Economic Research asked 47 prominent economists whether an influx of foreign workers would improve Japan’s fiscal health.
Two‑thirds (66 per cent) agreed, citing the tax and social insurance contributions of typically younger foreign residents and their role in easing labour shortages.
Seventy-six percent also believed the standard of living for the average Japanese citizen would benefit, pointing to improved availability of goods and services, greater price stability, and productivity gains from workplace diversity.
Japan’s foreign resident population stood at about 3.7 million at the end of last year, up 11 per cent from the previous year, yet still comprises only 3 per cent of the total population—far below the 11 per cent average among OECD countries.
Why Japan welcomes immigrants
Economists say Japan’s situation is different because of its shrinking workforce and low birth rate. “Greater acceptance of foreigners will boost the ratio of prime-age labour force and result in higher tax revenue and social security contributions,” said Hiroyuki Kasahara, a professor at the University of British Columbia.
Research suggests competition between Japanese and foreign workers for jobs is limited. “Empirical research has shown that foreign and Japanese workers primarily have complementary relationships and do not negatively impact the wages or unemployment rates of Japanese workers,” said Chiaki Moriguchi, a professor at Hitotsubashi University.
Western backlash over migration
By contrast, in many Western countries, public and political sentiment has shifted sharply against immigration. In a recent Gallup poll, 55 per cent of Americans in mid‑2024 said they wanted to see immigration reduced, marking the highest level since 2001.
Many voiced concerns over economic competition, labour markets, and strain on public services. Though more recent polling shows sentiment has moderated, this reflected significant resistance to rising immigrant numbers.
In the UK, the government has introduced a “one in, one out” scheme limiting asylum seekers as public frustration mounts; media commentary suggests the political centre has shifted right, with mainstream leaders adopting tougher views previously held by fringe parties.
Across Western Europe, 50–80 per cent of respondents in countries including Germany, Spain, the UK, Italy, Sweden, and France said immigration over the past decade has been “too high,” with many deeming it detrimental.
The European Union is increasingly adopting hardline policies, including moving to process asylum seekers in non‑EU countries, to manage public concern.
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