By Masunobu Maeda, Managing Director of ISFnet Singapore.
In late 2010, the Sanno Institute published the results of a survey which highlighted a big cultural shift occurring in Japan and putting significant pressure on businesses in the country: young Japanese people don’t want to work overseas anymore. Questioning 2010’s graduates, 49% said that they did not want to work abroad. That figure represents a 20% increase on the figure just 9 years earlier in 1991.
There is a similar decline in the number Japanese students studying at foreign universities. In 2008, just over 67,000 Japanese students were attending foreign universities, 20% less than in 2004.
So, why is this so important (and potentially disastrous) for businesses?
The demographic situation in Japan is bleak. One the one hand, our birthrate has been falling for the past ..... years which is causing a contraction in the population. At the same time, we are graying faster than any other country in the world and as the population. The result is predicted long term market shrinkage pushing companies that have traditionally relied on the domestic market to look overseas for new opportunities. This has been given new impetus, thanks to the current strength of the yen. Financially, there has never been a better time for Japanese corporations to invest in development abroad and improve competitiveness by shifting processes to lower cost areas.
The reluctance of young Japanese people to go overseas is headache for many companies, then. ISFnet has not been immune to this, we have seen similarly muted ambitions among our staff to working abroad. In this blog, over the next few weeks, I’d like to discuss this problem further and discuss how my experiences reflect on many of the issues sited by research for young Japanese people’s attitudes to working abroad.