[Dramatic Changes in the Japanese-English Bilingual Labor Market in the US] 5. Utilization of Senior Talent in Response to the Aging of Bilingual Workers

In Japan, declining birthrates, an aging population, and depopulation have been pressing issues over the past decade. Japan has already entered a phase of population decline. This trend is not limited to Japan; Korea, soon China, and indeed the majority of advanced nations will face a similar wave of population decline for sure.

The population of Japanese residents in the U.S. stands at over 400,000. The largest portion of these are expatriates and their families, with stays typically lasting about two to five years. While the number fluctuates based on business plans and the state of the U.S. economy, the Ministry of Foreign Affairs reports that the numbers have been on a downward trend due to the COVID-19 pandemic. On the other hand, although the statistics for permanent residents show a slight increase, it is uncertain whether these figures accurately reflect the actual situation.

Shifting the focus a bit, the overwhelming majority of those seeking employment in the U.S. are permanent residents, and the aging of this group is becoming pronounced. This shift is likely to occur far more rapidly than the aging of Japan’s labor force. As mentioned previously in this series (#2 and#3), the decline in the number of international students who have the potential to become future Green Card holders has significantly reduced the number of H-1B visa holders and, consequently, permanent residents.

In other words, the age demographic of new hires is rapidly and significantly aging. It is clear that Japanese companies operating in the U.S. will increasingly face the need to hire senior workers. While the age of expatriates remains constant or trends younger, it is only natural that they will encounter more opportunities to hire and work alongside older subordinates and colleagues. Japanese companies have traditionally placed importance on human resource development, but moving forward, it will be essential to consider measures to address the aging trend. In this IT-driven era, efforts to leverage the experience of senior workers while adapting to modern business methods will become increasingly necessary.

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.