Breaking the cycle of xenophobia

In July’s House of Councillors election in Japan, parties that are cautious about accepting foreign workers and that advocate for tighter restrictions saw their vote shares increase. Anti-immigrant parties have been gaining support overseas for some time, and now the treatment of foreign workers is increasingly becoming a point of contention in Japan, too.

- FUMIO OHTAKE

The Japan International Cooperation Agency (JICA) has cancelled its “Africa Hometown’ project designed to promote exchanges between African countries and four Japanese cities after the project generated considerable opposition and concern in Japan. Behind the backlash lies a rapid change in Japanese society —an increase in the proportion of foreigners from less than 1 per cent of the population in 1990 to around 3 per cent in 2024, with the percentage in some municipalities exceeding 10. Foreigners are working in various sectors in need of labour in Japan, such as manufacturing, nursing care, logistics and agriculture, and they are helping to invigorate the local economies that they land in. However, some people feel uneasy about the swift change. Regardless, no significant impact from foreign workers on employment or wages in the host country has been observed in empirical research in economics.

Harvard University Prof. Alberto Alesina, who passed away in 2020, and Asst. Prof. Marco Tabellini reviewed past research and conducted amultifaceted analysis of the economic and political impact of immigrants. They concluded that, on average, immigrants have a very small impact on wages and employment, and that in the long run, they contribute to

economic growth through complementary effects, greater consumption and innovation. Moreover, given that many immigrants are young, they play a vital role in providing a labour force and improving the sustainability of the social security system. Nevertheless, public backlash against immigrants and foreign workers is growing all over the world.