At 5 a.m., Yoshihara begins his shift at a meat processing plant in Australia, where he earns three times more than he did in Japan.
"I butcher sheep nearly 50 hours a week at this rural factory south of Sydney and earn about $3,300 a month, three times what I earned as a member of the Japanese military," said Tomoki Yoshihara, 25.
Yoshihara is one of a number of young Japanese who were granted short-term working visas to Australia last year. Many young Japanese are taking up the scheme, attracted by high wages and a weak yen.
"The income here is much better. If you want to save money, Australia is the place to go," he said.
A Japanese woman in Dublin, the capital of Ireland, February 2023. Photo: AFP
As similar visa programs in the UK, Canada and New Zealand resume after the pandemic, the influx threatens to exacerbate Japan's labor shortages and reflect concerns among young people about the country's economic future.
"Young people are questioning the economic outlook. Living conditions are becoming more difficult than the inflation index suggests," said Yuya Kikkawa, an economist at Meiji Yasuda Research Institute.
In March, the Bank of Japan (BOJ) announced the end of its negative interest rate policy, ending a period of monetary easing to boost growth.
Even as Japanese labor unions successfully demanded the biggest wage increase in three decades in March, the gap between real incomes in Japan and other advanced economies remains large.
Figures from the Organisation for Economic Co-operation and Development (OECD) for 2022 show that the average annual salary in Japan is $41,500, compared with $59,500 in Australia and $77,500 in the US.
People shop at a store in Tokyo, Japan. Photo: Reuters
Amid the highest inflation in decades, Japanese people are having to tighten their monthly spending after years of stagnant wages.
"Wages in Japan have not increased for 20 years, while other countries have increased. As the yen weakens, the gap is widening," explained Atsushi Takeda, senior economist at Itochu Research Institute.
In the 2022-23 financial year, nearly 14,400 Japanese people were granted working holiday visas in Australia, the highest number since 2001. This visa allows people aged 18-30 to come to Australia for 12 months to do jobs in agriculture , hospitality, nursing, construction, and office work, renewable for up to three years.
In addition to attractive salaries, Australia is considered a favorite destination for Japanese people because of its good security, similar time zones, and loose working regulations.
Canada issued nearly 8,000 similar visas to Japanese in 2023, while New Zealand issued 2,400. Britain issued nearly 900 visas last year, and the number is expected to rise as London prepares to increase its annual visa quota for Japanese from 1,500 to 6,000.
"More and more Japanese are going abroad to find work. If this trend continues, it will become more difficult to recruit young workers in Japan," warned Harumi Taguchi, senior economist at S&P Global Market Intelligence.
People at a restaurant in Tokyo, Japan, in February. Photo: Reuters
Lili Takahashi, who arrived in Australia this month after graduating from university, aims to work for two years, apply for permanent residency and marry her girlfriend, who lives in the country. Australia allows same-sex marriage.
For Takahashi, high salaries in Australia and the weakening yen against the AUD will help her have a better work-life balance.
"Income in Japan is enough to live on, but not enough to support hobbies and hang out with friends," said Takahashi, 22.
This is part of a growing trend of Japanese people choosing to live abroad. Figures from Japan's Ministry of Foreign Affairs in 2023 show the number of Japanese permanent residents abroad is the highest since 1989.
This could exacerbate the labor shortage in Japan's aging society. According to a survey by Teikoku Databank, more than two-thirds of small and medium-sized businesses in the country are facing labor shortages. Bankruptcies due to staff shortages hit a record high last year, forcing the Japanese government to increase its efforts to attract foreign workers.
Experts say the economic outlook will determine the future of this trend. "If Japan's economic indicators improve, young people will have a reason to return."
Duc Trung (According to Japan Times )
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