Presentation by
H.E. Mr. Kasit Piromya, Ambassador of Thailand to Japan
at the Symposium on the Movement of Natural Persons

March 19, 2003, Mita Conference Hall

The current reality

• Japan has a population of approximately 127 million. Of this total, approximately 67 million are part of the labor force.
• Current demographics indicate that Japan is experiencing a combination of an aging population and declining birth rate. It is estimated that the Japanese population will peak at 127.41 million in 2006 and then decline afterwards.
• The working population is diminishing in real and proportional terms. The current labor force of 67 million represents a labor force ratio (to general population) of 62%, a decline from the 71% ratio of 1955.
• Current demographics are indicating changes in the labor attitude of younger generations, in which many are forgoing higher education in favor of short term jobs to complement a lifestyle more attuned to the pursuit of hobbies and interests. There is also a decline in the number of people pursuing education in the science and technology fields.
• The unemployment rate in Japan is currently 5.3%, which is the highest level in 10 years and translate to an unemployment figure of 3.6 million. A majority of the unemployed are middle-aged and lacking the latest technological and information systems skills. Despite this figure, the reality is that Japan is also suffering from a situation of underemployment, in which certain sectors are unable to find enough workers because the jobs are undesirable or unpopular for the Japanese labor population, especially the younger generations. These jobs include labor intensive work, the so-called "dirty" work and work that are perceived as risky or dangerous.
• The aging population also places greater demand on societal mechanisms, requiring a corresponding work force to take care of the older generation. According to a study by the United Nations, if Japan wishes to preserve the current ratio of work force to elderly population at 4.8 to 1 Japan will have to decide between opening up the domestic labor market to up to 10 million foreign labor/year or extending the Japanese retirement age up to 77 years. Otherwise, the ratio of work force to elderly population would decline to 1.7 to 1.
• Despite this situation, Japan currently has a policy of not accepting foreign non-skilled labor, and of limiting skilled technical experts from abroad to 14 professions and 8 skilled labor sectors.
• The current reality is thus that there exists a need in Japan for skilled and non-skilled labor that is not being fulfilled by Japan's domestic labor force. There are shortages in specific sectors requiring both skilled and non-skilled labor, including information technology and the services industries. The clearest proof of this shortage is the presence in Japan of more than 250,000 illegal non-skilled foreign labors, of which approximately 17,000 are from Thailand.
• Furthermore, Japan currently is host to more than 70,000 foreign laborers participating in training programs in Japan. As trainees and interns, these foreign laborers receive allowances at a rate below the minimum labor wage, but are in effect fulfilling a need for non-skilled labor in various sectors (up to 62 sectors as classified by the Japan International Training Cooperation Organization - JITCO).
• Japan's labor force is declining, exposing labor shortages in a variety of sectors. Despite an unemployment level of 5.3%, these shortages are unlikely to be fulfilled by the unemployed because the jobs are in the high technology sector or in sectors that the Japanese labor force perceive as undesirable. These labor shortages in specific sectors could be ably taken care of by foreign labor.

Recommendations

• Despite denials to the contrary, the presence of illegal workers in Japan is prove positive that Japan has shortages in specific labor sectors which are not being successfully fulfilled by the domestic labor force. The international community could help Japan rectify these deficiencies. While it is understandable that the issue of opening up the domestic labor market to foreign workers is a sensitive one, it cannot be denied that in specific sectors, foreign skilled and non-skilled labor are making positive contributions to the positive development of the Japanese economy. These contributions must be recognized. Areas in which further contributions could be made must also be identified.
• On the one hand, this could require the expansion of the type of skilled technical experts allowed from abroad from the current 14 professions and 8 skilled labor sectors. Furthermore, the issue of non-skilled foreign labor must be addressed. While it could be said that the various training programs in Japan are providing opportunities for foreign non-skilled labor to receive technical training in Japan, there are also claims that the process is being used to fulfill the need for short term non-skilled labor in various sectors. What is needed is a reassessment of the demand for non-skilled labor and the possible opening up of the non-skilled labor market to non-skilled labor from abroad.
• In view of the current situation in Japan's labor sectors, Thailand is of the view that there are specific job sectors in which Thai skilled labor could make contributions for the overall benefit of the Japanese people. The sectors are Thai traditional medicine, older person caregiver, Thai cook and domestic helper.
• Thai traditional medicine entails the usage of Thai traditional massage for the promotion of health and well-being. A practitioner of Thai traditional massage is not a simple masseuse, but is an expert in anatomy skilled in the usage of the Thai traditional science of massage to treat various physical and cardio-vascular ailments. In order to be a certified practitioner, this person would have to pass an 800 hours training course organized by the National Institute of Thai Traditional Medicine of the Ministry of Public Health of Thailand. Furthermore, in order to qualify to work abroad, the Ministry of Labor of Thailand will ensure that the person must comply with the requirements of Thailand's National Labor Standard, receiving supplemental language and cultural orientation and training specific to the targeted country of work.
• Older Person Caregiver is a skilled labor specifically targeted for Japanese society. Thailand has long been a popular destination for Japanese customers seeking medical check-up and health care, offering a combination of affordable price, excellent medical services and personalized care attuned to the particular needs of the Japanese customers. It is with this tradition in mind that we seek to promote the position of older person caregiver in Japan to aid in the care of the Japanese elderly. Practitioners would have to pass a 210 hours training course organized by the Ministry of Labor in conjunction with the Thai Red Cross and Chulalongkorn University Hospital, one of the leading hospitals in Thailand, while also complying with the requirements of Thailand's National Labor Standard. The training and certification would ensure that the practitioner has the necessary medical, nursing, psychological and social skills for elderly care, along with the language and cultural training specially attuned to the requirements of Japanese society.
• Domestic Helper is a skilled labor sector targeted at the needs of a modern Japanese family, in which the family's principles are all at work with minimal opportunities to fulfill household responsibilities. The domestic helper is a person responsible for completing housekeeping and household chores, including cleaning, laundry and cooking. Practitioners would have to pass a 210 hours training course organized by the Rajabhat Suan Dusit Institute in cooperation with the Ministry of Labor of Thailand and also comply with the requirements of Thailand's National Labor Standard. The emphasis of the training course would be on cleanliness, safety and efficiency in the workplace, and would be supplemented by language, social and cultural training specially attuned to the requirements of Japanese society.
• Thai Cook is a skilled labor sector intended to satisfy the growing popularity of Thai food in Japan. With the popularity of Thai food in Japan, the issue of maintaining quality and standards become of increasing importance. A person certified as a Thai Cook by the Ministry of Labor of Thailand is an expert in the preparation of Thai cuisine. This person would be required to pass a certification course with a minimum 70 hours of training. The certification course would classify the skill level of the practitioner, and would be supplemented by language, social and cultural training specially attuned to the requirements of Japanese society.

The State of Thai Labor Abroad

• The Government of Thailand has an active policy of supporting the development of skills and abilities of Thai labor to best serve the needs of the international community. There are currently almost 400.000 skilled and non-skilled labor from Thailand working abroad, working in a variety of countries across the globe. Thai labor is especially popular in Taiwan.
• Approximately 41% of Thai workers overseas are technical workers such as transport equipment operators. Another 30% are laborers in fields such as construction. The remainder could be evenly divided between the manufacturing, agriculture and services sectors.
• The Ministry of Labor of Thailand is responsible for the promotion of Thai labor abroad, working in conjunction with the Ministry of Foreign Affairs, the Ministry of Public Health and the Ministry of Commerce of Thailand in developing new labor sectors abroad for Thai skilled and non-skilled labor.
• What is the appeal of Thai workers? Surveys have shown that foreign employers view Thai workers as being hardworking, adaptable, resilient and with a positive outlook on life.
• In order to better prepare the Thai work force for employment abroad, Thailand, through the Ministry of Labor, is in the process of establishing a series of training and certification system to guarantee that the ability of Thai workers in particular sectors at the minimum comply with or exceed international acceptable standards.
• This system of training and certification for specific labor sectors would compliment a national labor standard system establishing a set of minimum criteria on the knowledge, ability and skills of Thai workers.
• Thailand would actively coordinate with labor receiving countries to reach a common understanding and acceptance of the standards of the Thai labor training and certification system.