The Dynamics of Demand: The Japanese TITP and SSW Programs in an Era of Change

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Japan faces formidable challenges, including an ageing population, declining birthrate, and shrinking workforce. In response, the government has proposed increased factory automation, greater female workforce participation, and a higher retirement age. It also initiated an increase of migrant workers through the Technical Intern Training Program (TITP) launched in 1993, aimed at addressing the worker shortage issue. However, a lack of stringent regulations has led to accusations of human rights abuses. Consequently, the Abe administration introduced the Specified Skilled Worker (SSW) program in 2019, which provides migrant workers with higher paying jobs, benefits, and the potential for permanent residency contingent on basic work skill tests and Japanese language proficiency. Despite this, many small and medium enterprises (SMEs) still favor the TITP for the flexibility of rotating migrant workers without having to provide the same benefits as the SSW. The government has been exploring new ways to improve the TITP so that it can continue running parallel with the SSW in the future. This article focuses on the voices of SME employers, providing an evaluation of the current situation and exploring employers’ preferences for addressing Japan’s worker shortage. Additionally, the article addresses employers’ specific needs for migrant workers, employees’ performance, allegations of exploitation and abuse, which program is favored by all participants, and the future of the TITP.

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