"Don't Change Jobs Elsewhere" Threats... Japan Hires 'Sensor Employees' Amid Care Workforce Shortage [Korea-Japan Comparison]①

[In the Era of 10 Million Elderly, Learning from Japan]①
Addressing Labor Shortage with Technology... Japanese Government and Local Authorities Begin Full Support
Japanese Elderly Care Service Companies Invest in Technology... Also Promoting Exports

Editor's NoteSouth Korea's elderly population aged 65 and over is expected to exceed 10 million by 2025, with the proportion of elderly people surpassing 20% of the total population, entering a super-aged society. Japan already exceeded a 20% elderly population ratio in 2005 (20.2%), so South Korea is about 20 years behind Japan. The point at which the elderly population ratio exceeds 30% is projected to be 2025 for Japan and 2036 for South Korea, showing a gap of about 11 years. While Japan has been continuously preparing for population aging since the early 2000s, South Korea is significantly lagging behind Japan in all aspects. We hope this comparison of the senior business realities in Japan and South Korea raises awareness.

"We need to hire 10 people while expanding the nursing home this time, but it's not easy. Even if we post recruitment ads on various job platforms, only about one person applies. Some people apply just to maintain unemployment benefits. There is almost no way other than recruiting through introductions or personal networks." (Director of Nursing Home A in Seongnam-si, Gyeonggi-do)

According to the Ministry of Health and Welfare, the demand for caregiving personnel in South Korea's nursing facilities is expected to continue to fall short. According to the Ministry's 'Caregiver Workforce Projection Results,' the required number of caregivers by 2027 is 755,454. This is 75,699 fewer than the supply workforce of 679,775. The shortage of home care workers who visit elderly people struggling with daily activities to assist with physical activities, bathing, and household chores is projected to be 60,559, and the shortage of facility caregivers working in nursing facilities is 15,140, indicating about a 10% shortfall compared to the actual required workforce.

Like Nursing Home A, the shortage of caregiving personnel is surfacing across nursing facilities nationwide. The director of Nursing Home A explained, "Recently, a caregiver working at another nursing home tried to transfer to our facility, but they were threatened not to leave by the other side," adding, "Because of the severe labor shortage, directors use any means to retain staff." A representative from Neulpureun Somang Nursing Home in Yangcheon-gu, Seoul, said, "We have been posting announcements for two months, but we hardly get any contacts," and expressed concern about the increasingly difficult hiring situation, noting, "Although the salary is relatively high, there is a perception that caregiving labor itself is tough, so people tend to avoid it."

Japan Solves Caregiving Labor Shortage through Technology Adoption

Japan, which experienced caregiving labor shortages earlier than South Korea, is striving to address this issue through technology adoption. It is an attempt to fill the caregiving workforce gap with digital technology. The Japanese government estimates that about 1 million elderly care workers will be needed by next year, with a shortage of approximately 320,000.

Accordingly, the Japanese Ministry of Health, Labour and Welfare officially introduced a data-driven nursing system in 2021 to improve efficiency. The LIFE (Long-Term Care Information System for Evidence) system, literally translated as the 'Scientific Care Information System,' collects health data of elderly people for use in facilities. When health status data of nursing facility users are accumulated in this system, the data are sent to the Ministry for analysis and then feedback is provided back to the facilities.

Such support is also active at the local government level. For example, Tokyo Metropolitan Government operates a 'Digital Device Adoption Promotion Support Project' to fill caregiving workforce gaps. This project subsidizes part of the necessary expenses when nursing facilities introduce systems that use digital devices to reduce work burdens. The support recipients calculate the required budget themselves and upload it as an Excel file, which the local government reviews to determine the subsidy amount.

Japanese Companies Eye Overseas Exports through Expansion of 'Digital Care'

This government support has created an opportunity for private companies to actively invest in digital nursing system businesses. INFIC Group, a Japanese company that started with home care services and has grown its business in the caregiving field for over 20 years, currently operates not only facility management but also nursing IoT (Internet of Things), education, and insurance businesses. It currently employs 1,000 staff members.

Met Masuda Masuzu, CEO of Inpic Group, at a nursing home located in Kanagawa Prefecture, Japan. Photo by Park Yujin

On the 14th of last month, Masuda Masuzu, CEO of INFIC Group, whom we met at the nursing home 'Magokoro Town Shinyurigaoka' located in Kanagawa Prefecture, Japan, explained, "Since introducing the IT system, the efficiency of caregivers' night shifts has improved by 97.5%, and the turnover rate has decreased." Magokoro Town Shinyurigaoka is one of about 40 nursing facilities operated by INFIC Group in Tokyo and its vicinity, with a capacity of 150 beds.

During the visit, all rooms where users are admitted at Magokoro Town Shinyurigaoka were equipped with IoT systems developed by INFIC Group, reducing caregivers' workload. Room sensors measure temperature, humidity, illumination, and users' activity levels, while bed sensors installed on beds measure users' heart rates and body movements. For example, the system quickly detects when a patient tries to get out of bed and step down, triggering an alarm. This helps prevent patient falls.

Room sensor developed by the Japanese care specialist group 'Inpic'. It can measure four factors: room temperature, brightness, humidity, and the patient's activity level. Photo by Yujin Park

INFIC Group continues to develop caregiving-related technologies. Currently, they are developing an ultrasonic sensor device that can detect residual urine in the bladder or remaining feces in the colon of elderly patients. For caregivers, this allows them to check patients' bowel conditions in advance and determine the best time to take them to the restroom. The group is investing in developing such technologies. CEO Masuda said, "The profit margin from operating nursing homes is about 5%, and we use the surplus funds to invest in these IoT businesses," adding, "The government now deeply recognizes that advanced technology must be applied to caregiving and is continuously increasing related support." The devices and technologies developed are also being promoted for overseas export.

INFIC Group recently started an 'IT Caregiver Training' business, a new venture combining the group's caregiving expertise with IT know-how. CEO Masuda explained, "No matter how good the technology is, it is meaningless if the operators do not master it," and added, "We started an education system to improve proficiency in operating IT systems, which has become a profitable business due to demand not only from our caregivers but also from external parties."