Harnessing Foreign Talent: A Dialogue on Regional Economic Vitality with PDOLE and EY ShinNihon

Introduction

In an increasingly globalized world, the necessity for a sustainable labor force has never been more critical. In Japan, where demographic challenges like population decline pose significant risks to economic stability, the efficient integration of foreign talent into local economies has become a pivotal strategy. Recently, PDOLE Co., Ltd. and EY ShinNihon LLC held a thought-provoking dialogue centered on how municipalities and companies can collaborate to leverage foreign talent effectively.

Increasing Acceptance of Foreign Talent

As Japan grapples with its labor shortages triggered by a shrinking workforce, local governments have begun proactively welcoming foreign professionals. Various initiatives aimed at facilitating the employment and entrepreneurship of international students are being established. PDOLE, for instance, has been instrumental in organizing joint recruitment fairs in Shizuoka Prefecture, connecting local businesses with highly skilled foreign workers. Such initiatives not only address immediate labor shortages but also enrich the local economy with diverse perspectives and skills.

Barriers to Employment for Foreign Workers

Despite these positive developments, there are notable challenges hindering the effective employment of foreign talent. According to recent discussions, the lack of strategic frameworks from municipalities and insufficient support systems from companies often slow down the integration process. Additionally, Japan's unique labor practices, including seniority-based wage structures and rigid work hours, can deter foreign professionals who may expect more competitive conditions. Therefore, a focused effort to communicate Japan's strengths—such as its cultural safety and high living standards—while also addressing economic realities is critical to attracting and retaining international talent.

Facilitating Social Change Through Collaboration

EY ShinNihon emphasizes the importance of partnerships between local governments and industry organizations to enhance human capital strategies. Alongside, PDOLE aims to align businesses' global strategies with support systems for integrating foreign talent. By understanding and meeting the needs of both municipalities and companies, these organizations strive to create sustainable frameworks for foreign talent utilization, aligning with Japan's broader goals of economic growth and innovation.

Looking Toward the Future

The dialogue brought to light a crucial insight: the use of foreign talent should be viewed as more than a mere solution to labor shortages. Rather, it is essential for regional economic growth and the enhancement of corporate competitiveness. Strategic collaboration among municipalities, businesses, and specialized institutions is necessary to ensure that foreign talent not only arrives but also thrives within Japan’s ecosystems.

PDOLE's Commitment

PDOLE remains committed to supporting businesses' globalization processes and facilitating optimal matches between companies and skilled foreign workers. By continuing efforts to promote the effective use of foreign talent, PDOLE aspires to enhance Japan’s international competitiveness and create a society that truly reflects its global status.

Company Overview

EY ShinNihon LLC

- Address: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo Midtown Hibiya, Hibiya Mitsui Tower
- Chairman: Masami Katakura
- Established: April 2000
- Website: EY ShinNihon