In the current Upper House election, some political parties are claiming that the increase in foreign workers is keeping Japanese wages from rising. But is that really true? Two experts gave their views.
What politicians are saying:
- Naoki Hyakuta, leader of the Japan Conservative Party, said on June 26 that foreign workers earn about 70% of what Japanese workers make, and this "cheap labor" stops wages from going up.
- Sohei Kamiya, leader of Sanseito, said on June 30 that when more workers are available, wages naturally go down. He added that foreign workers are paid about 30% less on average and are seen as cheaper labor.
What the data says:
- According to the Ministry of Health, Labor and Welfare, the average monthly salary for Japanese workers (excluding overtime) is about ¥330,000, while foreign workers earn about ¥240,000 — about 70%, which matches the claim.
- However, Japanese wages have been slowly rising, up ¥30,000 compared to 2014.
- The number of foreign workers is also increasing, reaching a record high of over 2.3 million as of October 2024.
What the experts say:
- Yu Korekawa from the National Institute of Population and Social Security Research said the wage gap is mostly due to foreign workers being younger and working at smaller companies. He said there's little pay difference between Japanese and foreign workers doing the same job, and there’s no clear evidence that more foreign workers directly stop Japanese wages from rising.
- Japan’s working-age population is shrinking due to low birth rates and aging. Government estimates say the working-age population will drop from 73 million in 2024 to 55 million by 2050. Korekawa said that even if Japan brings in 300,000 foreign workers a year, labor shortages will still remain, and foreign workers likely won’t have much impact on wages.
- Akinori Tomohara, a professor at Aoyama Gakuin University who specializes in immigration policy, said the claims from Hyakuta and Kamiya lack detailed conditions. He pointed out that wages are affected by many factors, including global economic conditions and company savings. Foreign labor is just one of many influences and shouldn’t be singled out.
Bottom line:
Yes, foreign workers earn less on average, but that doesn't prove they're the reason Japanese wages aren’t rising. Experts say many other factors are involved, and there’s no solid evidence that more foreign workers are directly hurting Japanese pay.
by MagazineKey4532