Japan to hire more foreign workers to accelerate economy

5 years ago by in Japan, Politics

Shinzo Abe’s government said on Monday it is ready to ease the procedures that companies have to follow in order to hire foreign workers as trainees or for jobs that require high skills. The main reasons for the politicians’ decision are the declining workforce and the need to accelerate the country’s economic growth.

More women will be hired as well in management positions and the child care system will be strengthened to increase the number of working women, a top advisory panel said on Monday.

Japan is the nation with the fastest aging population among all the developed countries in the world, with a quarter of the population already over 65 years of age. The workforce is also shrinking, which could become a considerable drag on growth, according to the international press.

The new measures will be applied by the middle of 2014, the Industrial Competitiveness Council said.

The government will also consider lowering the effective corporate tax rate and expanding the tax base to increase the competition between the Japanese companies.

Japan’s corporate tax rate, which is set at 38 percent for a large Tokyo-based firm, is among the highest in the world and companies often lobby to lower the tax burden.