Highly-Skilled Migration and Competitiveness: The Science and Engineering Industries in Japan

Similar documents
Outline. Why is international mobility an important policy issue? The International Mobility of Researchers. IMHE Conference

MANAGING LABOUR MIGRATION: TECHNOLOGY WORKERS

Rethinking Australian Migration

Push and Pull Factors for Japanese Manufacturing Companies Moving Production Overseas

GDP Per Capita. Constant 2000 US$

STUDENT VISA HOLDERS WHO LAST HELD A VISITOR OR WHM VISA Student Visa Grant Data

Chapter 5: Internationalization & Industrialization

HRST Development in China. Mu Rongping Institute of Policy and Management Chinese Academy of Sciences

SECTION THREE BENEFITS OF THE JSEPA

FY 2005 Liaison Meeting - JILPT International Labor Information Project

HIGHLIGHTS. There is a clear trend in the OECD area towards. which is reflected in the economic and innovative performance of certain OECD countries.

QUANTIFYING TRANSNATIONALISM: ASIAN SKILLED MIGRATION TO AUSTRALIA

CHINA INTERNATIONAL INBOUND TRAVEL MARKET PROFILE (2015) 2015 U.S. Travel Association. All Rights Reserved.

Survey on International Operations of Japanese Firms (FY2007)

Private sector fundraising and partnerships

Table 10.1 Registered Foreigners by Nationality:

attract promising foreign enterprises with reference to the management strategies of individual companies, adopting a mindset similar to that of execu

Charting Indonesia s Economy, 1H 2017

Taiwan s Development Strategy for the Next Phase. Dr. San, Gee Vice Chairman Taiwan External Trade Development Council Taiwan

Innovation: Comparaisons Internationales

MIGRATION BETWEEN THE ASIA-PACIFIC AND AUSTRALIA A DEVELOPMENT PERSPECTIVE

Innovation: Comparaisons Internationales

Business Data For Engaging in International Real Estate Transactions in California. National Association of REALTORS Research Division

3 1-1 GDP GDP growth rate Population size Labor force Labor participation rate Employed population

Figure 1. International Student Enrolment Numbers by Sector 2002 to 2017

Business Data For Engaging in International Real Estate Transactions in Utah. National Association of REALTORS Research Division

Creating a 21 st Century Workforce

Executive Summary. International mobility of human resources in science and technology is of growing importance

ASEAN Emerging Growth, Opportunities & Challenges

Immigration and the American Economy: Is Bad Policy Creating a Hostile Welcome?

Elderly Care Work and Migration: East and Southeast Asian Contexts

Business Data For Engaging in International Real Estate Transactions in Idaho. National Association of REALTORS Research Division

Executive summary. Migration Trends and Outlook 2014/15

UK VISA SYSTEM FOR EXPATS. Paula McGoewn Do Your Own Visa

Data Section 1. Major Developments since April 1, 2013

Charting Philippines Economy, 1H 2017

Labor market integration within the NAFTA region: beyond the migration rhetoric. Miguel Jimenez. August, 2013

Employment of International Students in Japan: Opportunities and Challenges

Charting South Korea s Economy, 1H 2017

Socioeconomic Profiles of Immigrants in the Four Atlantic provinces - Phase II: Focus on Vibrant Communities

The i-graduate ICEF Agent Barometer 2015

Issues in Education and Lifelong Learning: Spending, Learning Recognition, Immigrants and Visible Minorities

Higher education global trends and emerging opportunities to Kevin Van-Cauter Higher Education Adviser The British Council

Andrew Wyckoff, OECD ITIF Innovation Forum Washington, DC 21 July 2010

Charting Singapore s Economy, 1H 2017

China National Day Golden Week 2017 Preview

Foreign workers in the Korean labour market: current status and policy issues

Building Family Legacy through Citizenship and Residence Programmes

Executive Summary. Background NEW MIGRANT SETTLEMENT AND INTEGRATION STRATEGY

Mizuho Economic Outlook & Analysis

Expat Explorer. Achieving ambitions abroad. Global Report

Japan s Policy to Strengthen Economic Partnership. November 2003

WHO Global Code of Practice & the EC Brain Drain to Brain Gain Project. Ibadat Dhillon, Technical Officer, WHO Health Workforce

Wealth migration trends in 2015

Introduction to Taiwan

Consumer Travel Perceptions & Spending Patterns. Paul Wilke Director Corporate Relations Visa International Asia Pacific Guilin, China 29 June 2007

Hinrich Foundation Sustainable Trade Index Country overview: Singapore

The role of ASEAN labour attachés in the protection of migrant workers

Recent developments at the EPO: Focus on quality and efficiency. Roberta Romano-Götsch EPO Principal Director

Putting the Experience of Chinese Inventors into Context. Richard Miller, Office of Chief Economist May 19, 2015

Exploring relations between Governance, Trust and Well-being

LABOUR MIGRATION IN ASIA ROLE OF BILATERAL AGREEMENTS AND MOUs

MEGA-REGIONAL FTAS AND CHINA

Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific

Trade, informality and jobs. Kee Beom Kim ILO Regional Office for Asia and the Pacific

[Points-Based System for Highly-Skilled Professionals] Question 1: What is the Points-Based System for Highly-Skilled Professionals?

Markets in higher education

38% 38% NEW AMERICANS IN SAN JOSE AND SANTA CLARA COUNTY POPULATION GROWTH A SNAPSHOT OF THE DEMOGRAPHIC AND ECONOMIC CONTRIBUTIONS OF IMMIGRANTS

Vietnam s Current Development Policies: An Overview

AN OVERVIEW OF FAMILY MIGRATION IN OECD COUNTRIES

Lecture III South Korean Economy today

Student Mobility: Implications for the ASEAN Labor

The Henley & Partners - Kochenov EXPERT COMMENTARY. China and India By: Suryapratim Roy

China and India:Convergence and Divergence

Varieties of Capitalism in East Asia

GERMANY, JAPAN AND INTERNATIONAL PAYMENT IMBALANCES

Levels and Trends of International Migration in Asia and the Pacific

International students in Australia beyond dollars, migrants and spies

COUNTRY PROFILE. Czech Republic

Creating an enabling business environment in Asia: To what extent is public support warranted?

Turning Trade Opportunities and Challenges into Trade: Implications for ASEAN Countries

Part II. Immigration Control in Recent Years

TitleMovement of People in East Asia and

EcoTalent Mobility and International Development: Issues, Experience and Policies

Charting Cambodia s Economy

Profile of Canada s International Student Movement: From Temporary to Permanent Residents. Pathways to Prosperity April 20 th, 2018 Vancouver, BC

Investor Migration Rise of the Global Citizen. Dominic Volek, CA(SA), IMCM Managing Partner and Head Southeast Asia

Proliferation of FTAs in East Asia

MALAYSIA Transformation Agenda

Labor. Figure 180: Labor market, key indicators,

IMMIGRATION ROUTES TO REMAIN IN THE UK POST STUDIES

Presented By Jeffery Tan Corporate Vice President & Director Motorola Law Department Asia Pacific Region

Charting Australia s Economy

Latin America in the New Global Order. Vittorio Corbo Governor Central Bank of Chile

Regional Migration Trends

Designer Immigrants? International Students, as Potential Skilled Migrants Lesleyanne Hawthorne Professor International Workforce

EABER WORKING PAPER SERIES

staying Put for Work

Immigrants and the North Shore Labour Market

Asian Development Bank

Transcription:

Highly-Skilled Migration and Competitiveness: The Science and Engineering Industries in Japan Migration and Competitiveness: Japan and the United States March 22-23, 2012 Nana Oishi, Sophia University

Outline 1. Introduction: Japan s Overall Competitiveness in Science & Engineering 2. IT Industry 3. Why So Few S&E Migrants? 4. Policy Developments 5. Future Challenges for S&E Migration in Japan

Japan s Competitiveness in Science Japan s Overall Competitiveness = 26 th in the World High Competitiveness in Science Index IMD Ranking Number of R&D Professionals 1 Number of Patents Granted 1 Scientific Infrastructure 2 R&D Expenditure ($) 2 Number of Scientific Publications 3 Source: World Competitiveness Yearbook (2011)

Japan s Competitiveness in Human Resources in Science & Engineering Index IMD Ranking Total # of R&D Workers in Business 2 % of University Degrees in Science & Engineering 4 Availability of Qualified Engineers 11 Attractiveness to Researchers & Scientists 17 Availability of IT Skills 23 Source: World Competitiveness Yearbook (2011)

IT Industry Size IT Market Size: US$255 billion The 4 th largest industry after retailing, electronics, and wholesale trade Software: 70% of the ICT sales Labor Force: 1.5% of Japan s Total Labor Force (984,000 workers) 42% System Engineers 19% Programmers 19% Managers & Sales Staff R&D: 625,300 workers The 2 nd largest in the world

Migrant Engineers in Japan Total Number: 42,634 (2011) = Approximately 8% of Engineers in Japan Data on the Newly-Registered Migrant Engineers 70+% are Men (combined with Int l Affairs Visa Holders) The Graduates of Japanese Universities 74% in Non-Manufacturing Industries Computerrelated companies (62%), Finance/Insurance (5.4%), Human Resources (4.9%) 26% in Manufacturing Industry (Automobile, Electronics, and Machinery) 68.3% work in the Kanto region (Tokyo) followed by Chubu 12% (Nagoya, Toyota), Kinki (Osaka, Kobe) 9%

Recent Trends in HRST Migration 80000 70000 60000 50000 40000 Specialists in Humanities & Int l Affairs Engineers 30000 20000 Inter-Company Transferees 10000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Migrant Engineers: Countries of Origin 1.7% 4.2% 4.7% 12.8% China Korea 7.5% 15.1% 53.9% India Vietnam Philippines USA Others

Corporate Size of Migrant Engineers 11% 14% 14% 8% 2% < 9 employees 21% 30% 10-99 emloyees 100-299 employees 300-999 employees 1,000-4,999 employees 5,000+ employees Unknown Source: Ministry of Justice (2011)

Migrant Engineers: The Age Cohorts 26.7% 1.9% 0.4% 20-29 5.9% 65.0% years 30-39 years 40-49 years 50-59 years Others Source: Ministry of Justice (2005-2010)

Migrant Engineers: Income Level 0.9% <$2500 5.5% 11.2% 9.5% 17.9% 12.7% 42.3% $2,500- $3,699 $3700-$4,899 $4,900- $6,149 $6,150- $7,384 $7,385+ Source: Ministry of Justice (2011) Unknown

Why So Few Migrant Engineers? 1. Demand-Side Factors Limited Demand for Highly-Skilled Migrants 40% of major Japanese corporations have never hired highly-skilled foreigners (MOWL, 2008) Only 10% have hired foreign graduates (JILPT, 2008) Why? Concerns for Communication Ability in Japanese Concerns for High Turn-Over Rates Difficulty in Capability Assessment Limited Assignment Options due to the Immigration Status

Why So Few Migrant Engineers? 2. Supply-Side Factors Limited Supply of Highly-Skilled Engineers Japan as a non-english working environment Japan as an Unattractive Country for Employment 35% of Foreign Students in Japan are planning to work in their home country or a third country. Japan ranked 44 th in the Attractiveness Ranking

44 37 36 32 23 19 18 13 7 5 4 3 2 1 The Attractiveness for the Highly-Skilled Switzerland Singapore USA Australia Canada Hong Kong China Malaysia Thailand India Taiwan Philippines Korea Japan 4.74 4.44 4.39 4.07 6.05 5.67 5.49 5.34 7.8 7.63 7.46 7.42 8.22 8.77 0 1 2 3 4 5 6 7 8 9 IMD, World Competitive Yearbook 2009

1. Career Development Unattractive Remuneration Package 57% of new migrants (engineers & humanities/int l services) received a monthly salary of $1,800-$2,800 Significant Differences in Average Annual Income of Engineers in Japan and other industrialized countries Lack of Transparency & Rigidity in Promotions Inflexible Labor Market -- Difficult to change jobs/positions Japan-Specific Business Practices Assignment in Japan as a Career Killer (Tsukazaki, 2009) The Japanese business practices are so different that even managers who succeeded elsewhere would find them difficult to cope with. Japanese Trap Even those who succeeded in Japan feel that they became trapped because the skills that they acquired in Japan are not useful elsewhere and thus their employability has declined.

2. Integration at Workplace Difficulty in Communications Not only the language Acquisition Limited social contacts even among Japanese Lack of Role Models Feelings of Isolation & Marginalization Even when not being discriminated, man of them feel isolated and marginalized at their workplaces. Lack of Work-Life Balance Stuart Chambers (a Brisith CEO of Japan Sheet Glass) resigned because of the need to prioritize time with family.

3. Social Integration Integration of Children Lack of Diversity/Multicultural Education in Japanese Schools Tuition for International Schools = 2 million yen/year No subsidies from Japanese corporations Japanese Trap vs. Global Professionals Declining Quality of Japanese Education Integration of Spouses Social Isolation in the Communities Limited Employment Opportunities Common-Law Partners No legal entry as a family member

4. Institutional Barriers Social Security System 25 years of membership required to receive benefits Less incentives for settlement if migrants are not eligible or if they cannot commit themselves to stay for life. Withdrawal Lump sum Payment of $2,600 (National Pension Plan) or 2-month salaries (Employees Pension Insurance) Tax Agreements Over 5 years of residency in Japan Tax on the Overseas Assets Limited International Agreements on Social Security

Social Security Agreements Country The Number of SS Agreements France 386 Germany 226 Canada 180 United Kingdom 157 United States 97 Japan* 10 Source: OECD (2008) The data for Japan is from Social Insurance Agency (2010)

The Major Concerns for Policy Makers & Corporate Leaders Global Competition for Talent Population Aging Labor Force decline by 45% in 2055 Dependency Ratio to reach 1.3 in 2055 Highly-Skilled Migration Identified as a Growth Strategy Knowledge Economy & Creative Economy Innovation-driven growth

Policy Development I Japan as an Open Country for Highly- Skilled Migration Promoted since 1988 No Labor Market Test or Numerical Quota 2001: E-Japan Strategies Accept 30,000 highly-skilled migrants (IT workers) by 2005 Not Achieved 2006: The Revision of the Immigration Control and Refugee Recognition Law Facilitating the Inflows of IT Workers from Overseas

Policy Development II 2008: MEXT Plan for International Students Increase the Number to 300,000 by 2020 2009: MEXT Global 30 Program Allocate Financial Resources for Universities Willing to Globalize 2010: The New Growth Strategy Double the number of Highly-Skilled Migrants Increase International Studies

Policy Development III 2012: The Point System for the Highly-Skilled Additional Incentives for Highly-Skilled Migrants 70 points needed The annual income of 10 million ($80,000) or more (40 points), Ph.D. (30 points), MA/MSc (20 points), 10+years of work experience (20 points) Permanent Residency after 5 years (now 10 years) Work Permit for a Spouse Residential Permits for Parents and Domestic Workers Various Restrictions Applied (Annual income of 10 million for a parental permit and 15 million yen for a DW permit)

Future Challenges for S& E Migration: 1. The Impact of 3.11 Exodus after the Greater East Japan Earthquake on March 11, 2011 531,370 migrants (1/4 of all migrants) left Japan between 3/12-4/8, 2011 Inflows Resumed in May/June 2011 but. Overall Decline of Migrant Engineers ( 8.5%) & International Students ( 6.4%) Acceleration of Corporate Relocations to China, Hong Kong, Singapore (Structural Issues)

Future Challenges for S&E Migration 2. Long-term Sustainability China as a No.1 Supply Source of S&E Migrants China Emerging as a Brain Magnet The World s No 2 in the Publication of Scientific Articles Higher Citation Ranking on Scientific Articles than Japan No.1 Research Collaborator of American Scientists State Strategies for Global Talent Acquisition Attracting 1,000 World s Top Scientists with 1 million Yuan (US$160,000) -- PLUS Annual Income of $370,000-$500,000

Future Challenges for S&E Migration 2. Long-term Sustainability -continued Dependency on China? Only the Moderately Highly-Skilled Available for Japan? 1 Million Excess College Graduates in China High Unemployment among College Graduates = 18% (30%?) The Only-Child Generation has a Higher Inclination to Return Home Dependency on Asia? Declining Birthrates and Working-Age Populations in Korea, Singapore, HK, Taiwan Narrowing Economic Gap between Japan and other Asian Countries

Future Challenges for S& E Migration: 4. Attracting International Students The Government s Plan to Increase International Students to 300,000 by 2020 challenging in post-3.11 Japan Globalization of Japanese Universities ( Global 30 ) More courses in English Institutional Adjustment (e.g. Change in Academic Year) More Incentives for Science/Technology Majors Only 17% are in Science & Technology Supporting International Students for Employment 62% want to stay on for employment, but find it challenging to obtain the information on job hunting procedures

Future Challenges for S& E Migration: 5. Globalization of J Corporations More Extensive Recruitment Period for Newly Grads More Labor Market Flexibility Multilingual Work Environment (e.g. Mitsubishi Corp Chinese, Uniqlo & Rakuten English) More Transparency in Performance Evaluations and Promotions Removing Institutional Barriers (SS, Tax, Education)

Future Challenges for S& E Migration: 5. Policy Strategies 4. Diversification of Highly-Skilled Migrants Highly-Skilled Migrants: 75% from Asia Students: 92% from Asia (China 59%, Korea 15%) Too much dependency on Asia (esp. China) may not result in successful innovation based on diversity. Forthcoming Population Decline in Asia 5. Retention of Highly-Skilled Migrants 47% of Foreign Students with Ph.D. Plan to Leave Japan More Incentives & Multicultural Programs