Historic Low Yen Poses Challenges for Japan's Foreign Workforce

Apr 20, 2024 | News On Japan

TOKYO - Japan's foreign workforce has grown to about 2 million people, an increase of approximately 220,000 from the previous year. However, the weak yen means living conditions have become less favorable, sparking fear among Japanese business leaders that Japan may become an unattractive destination for foreign workers.

For tourists who find Japan now more affordable, the weaker yen is a boon. From January to March this year, both the number of visitors to Japan and their spending reached all-time highs.

For foreign workers, particularly technical interns, the decreased value of the yen makes their earnings less sufficient for covering living expenses and sending money home.

With the ongoing depreciation of the yen, there is a growing apprehension among Japanese business leaders like Kenji Mukogo, the 76-year-old president of Matsuyama Steel Material, that Japan may become an unattractive destination for foreign workers. "If foreigners stop coming to Japan or choose other countries, it could be a matter of life and death for us," Mukogo said.

Currency exchange rates are a common topic among interns. An an intern from Indonesia shared, "One yen is now 104 rupiah, down from 140 rupiah in the past. I find myself praying, 'Please God, make the yen a little stronger.'"

At the intern dormitory, food budgets are tight. "I usually use 3-4 eggs, but now I can only afford one. I can't even buy meat because it's too expensive," said an intern from Indonesia.

During meals, the conversation often turns to countries like South Korea and Australia, now considered more desirable destinations.

Despite the growing number of interns from Indonesia compared to 2019, the recovery from Vietnam has not reached its peak. Nguyen Van Tin, involved in sending interns from Vietnam, mentioned, "I used to receive about 100 interns annually, but this year it was around 80."

Nguyen added, "The yen's depreciation and the growing desire to work in Europe are influencing decisions, though moving there is challenging. Salaries in Europe can be double what they are in Japan."

Source: ANN

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