[Dramatic Changes in the Japanese-English Bilingual Labor Market in the US] 3. Yearly Trends of Japanese Students Studying in the United States

Our proprietary job placement and dispatch management database, “Job Navigator,” has allowed us to gather various statistics since the founding. Notably, since our nationwide expansion in 2004, data compiled enables year-by-year comparisons under consistent conditions. Although these statistics are from us – a single staffing company, they can provide valuable insights into the employment trends of Japanese students in the United States. Surprisingly, our in-depth look into “Japanese Students in America” yielded more unexpected data than anticipated.

In 2005, when we completed our nationwide expansion (20 branches at the time), the number of new Japanese graduates and OPT (Optional Practical Training) visa holders seeking employment in the U.S. was at its peak, with 570 annual registrants. From 2004 to 2008, there were consistently over 350 registrants each year, marking this period as the peak. (This does not include registrants who secured employment from OPT and changed their visa status to a work visa.)

Following the severe employment difficulties after the financial crisis of 2008, the number of registrants plummeted to 214. This decline continued year after year, and by the pre-COVID years of 2019 to 2022, the number had dropped to less than 5% of its peak (fewer than 30 registrants annually).

Typically, OPT holders secure jobs and transition to H-1B visas and eventually become Permanent Residents. However, with the decline in OPT holders, the number of job seekers transitioning to permanent residents has also significantly decreased. This situation closely resembles Japan’s domestic issues of depopulation as well as aging population. Nowadays, due to the difficulty of obtaining an H-1B visa, more students are abandoning the idea of finding jobs in the U.S. and instead starting their job search in Japan from the outset. Additionally, it is also possible that the economic reality of stagnant household incomes in Japan since the 1990s led students to choose more affordable countries for studying abroad over the U.S.

Given these circumstances, shifting from hiring Japanese employees to recruiting Japanophiles and Japan-savvy Americans for positions that require an understanding of Japanese culture will be a crucial decision for managing operations in the U.S. Additionally, in recent years, there has been a significant increase in the number of job categories covered under STEM, and STEM students are now eligible to apply for a 3-year OPT visa.

On the other hand, facing this irreversible trend, there is a pressing need for Japanese organizations across the U.S. to seriously consider how to increase the Japanese population living in America through a united effort from both public and private sectors.

Written by Masato Fujihara, President
Interesse International Group
Came to New York as an expatriate for an HR company in January 1994.  Became independent in 1996 and started own business in defiance of return-to-Japan order by the company.  Currently, Interesse International Group has 11 locations in the United States and established a Japanese subsidiary in 2022. With 30 years of knowledge and experience in the HR industry, Interesse International Group delivers practical information to clients.