Japanese workers become migrants seeking better pay overseas

Japanese workers become migrants seeking better pay overseas

Former car company employee who moved to Sweden enjoys higher pay and family time "It would be difficult to return to Japan without sacrificing the good salary and work-life balance I can get in Sweden," said a 34-year-old systems engineer. TOKYO -- "I wanted to grow overseas rather than stagnate in Japan," said a Japanese man who works as a systems engineer at a startup in Stockholm. His annual income has increased by about 1.5 times compared to his previous job in Japan, and in Sweden he has gained a living environment that would have been difficult to obtain in his home country. The 34-year-old, who now lives in the "Venice of Northern Europe," moved from a Japanese automaker to his current company in February 2020. The company has about 3,500 employees, including approximately 20 Japanese. His main responsibility is designing systems for automakers and industrial machinery manufacturers in Europe and North America. The man's decision to work for an overseas company was influenced by a business trip to Europe during his previous job. He noticed that a colleague who worked for a group company in Europe had a higher salary than him, yet finished work at 6 p.m., ate dinner with his family, and had weekends off. The man, who had completed graduate school at a Japanese national university, worked for seven years at his previous company, where his salary did not increase significantly. During the busy season, he often came home very late at night after working overtime -- sometimes exceeding 80 hours a month. He began his job search with the help of a company that specializes in placements abroad. After interviewing with several companies, including an overseas automobile manufacturer, he found his current position. "It is best to stay in Japan, where it is easiest to live. However, it would be difficult to return to Japan without sacrificing the good salary and work-life balance I can get in Sweden," he said. More Japanese businesspeople are moving overseas to find better pay and working conditions. According to the Organization for Economic Cooperation and Development (OECD), the average wage in Japan in 2021 was $39,711, barely increasing over the 30 years since 1991, when it was $37,866. Meanwhile, wages in the U.S. are about 1.9 times higher than in Japan, reaching $74,738, and increased about 1.5 times over the same period. South Korea, with an average wage of $42,747, surpassed Japan in 2015. Inquiries from overseas job seekers were 1.5 times higher in 2022 than in 2021, partly because of the weak yen, according to Satsuki Tamura, founder of GJJ, an overseas career change support company in Tokyo. Previously, most job seekers were young people in their late 20s and early 30s who graduated from prestigious universities. Recently, the number of people in their 50s and 60s with experience working overseas has increased. Many of them are seeking jobs in Southeast Asia through local hiring by Japanese companies, but they do not intend to stay in the region permanently.

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Miami-based sushi chef Yasuhiro Tanaka, 37, came to the United States in 2016. He worked at a high-end sushi restaurant before going on his own in December 2020. He is now the owner and chef of a sushi restaurant in Miami.

After college, Tanaka joined the Japan Overseas Cooperation Volunteers. Upon his return, he went to a culinary school and got a job at a high-end sushi restaurant in Tokyo's Ginza area. Despite working there for two and a half years, he never got the chance to work at the counter. Instead, he was kept busy with buying food, preparing meals for other colleagues and answering the phone. His annual salary was about 3 million yen (currently $22,000).

Japan's seniority system kept sushi chef Yasuhiro Tanaka from serving customers until he went to New York. He now owns his own restaurant in Miami. (Photo courtesy of Yasuhiro Tanaka)

A former colleague who had temporarily returned from the U.S. asked Tanaka if he would like to try making sushi in New York. He accepted and made sushi for a customer for the first time there -- and also doubled his annual income in his first year. Tanaka's income steadily increased as he progressed in his career, and now, as an independent chef, he makes about 80 million yen annually.

Tanaka appreciates the guidance he received from his master and senior apprentices in Ginza. However, he notes that Japan's seniority system and emphasis on lengthy apprenticeships can stifle talent. In contrast, the U.S. offers more opportunities regardless of age or gender.

According to the OECD, Japan's average wage ranks 24th out of 34 countries, the lowest among the Group of Seven countries. As a result, an increasing number of Japanese workers have emigrated in search of better working conditions.

But changing jobs to overseas involves risks.

Tatsuo Moriyama, a researcher on overseas employment and author of several books on the subject, notes that not everyone can secure employment abroad, because highly specialized skills are required to earn high compensation. Compared to Japan, where regulations are stringent and it is hard to be fired, probationary periods overseas are lengthy, and if results are not produced, termination can be immediate. Furthermore, according to Moriyama, high medical costs and limited access to quality medical care are challenges in some areas.

"It is essential to live in the area for a short period before deciding to change jobs and keep the option of changing jobs locally or returning to Japan open if something occurs," Moriyama advised.