Foreign Workers Fill the Gap in Auto Parts Manufacturing

recruiting workers for his plastic components factory. He notes a reluctance among young Japanese to take factory jobs due to the demanding work environment.

Iwadukasei manufactures a variety of car interior and automotive parts. The company melts granular plastics and feeds the liquid plastic into metal molds. They supply parts to Toyota, Mitsubishi Motors Corp., and other businesses. Historically, the company hired local high school graduates, but this practice became nearly impossible after 2000. Over the past two decades, only about ten Japanese employees have been hired.

To address the labor shortage, Iwadukasei has turned to technical intern trainees from Asian countries. The workforce now includes 18 Japanese employees and nine trainees from Indonesia and Vietnam. One of these trainees is Vina, a 24-year-old Indonesian woman. Her primary responsibility is inspecting exhaust ducts for defects.

Vina's monthly income is significantly higher than what she could earn back home, and she sends a portion of it to her parents. She feels comfortable in Japan and is eager to learn about Japanese business practices. She is focused on mastering the 4-S principles of the workplace, hoping to implement them when she returns to Indonesia.

Uchida acknowledges communication challenges between Japanese and foreign workers, which can lead to errors. While he would prefer to employ Japanese workers, he recognizes the necessity of foreign workers to maintain production levels. He also faces price competition from Japanese automakers operating in countries with lower labor costs.

The sustainability of his business is a long-standing concern for Uchida, given the declining Japanese population. He considers downsizing as a potential option. Japan's reliance on a foreign workforce is increasing as the working-age population shrinks.

The proportion of foreign workers in Japan has grown significantly. In 2024, one in 29 workers was foreign-born, with 25% of these in the manufacturing sector. Aichi Prefecture has a high ratio of foreign workers, second only to Tokyo. Many of these are long-term residents, including Japanese-Brazilians.

The 1990 revised immigration law allowed certain foreigners to work in Japan without restrictions. However, many lost their jobs after the 2008 financial crisis. The subsequent wave of foreign labor came from young workers in Asian countries.

Valeria Turci Sakaguchi, a Japanese-Brazilian, worked in an automotive parts factory for decades but had her contract terminated after turning 60. Despite her long tenure, she is ineligible for Japan's national pension benefits. She reflects on the need for a long-term perspective in how foreign workers are treated, expressing concern that young Asian workers may face similar challenges in the future.