"If This Continues, Japan Will Collapse... Intellectual Abilities Also Declining," Diagnosis by Japan's Richest Man

Pointing Out Japan's Situation Where Highly Educated Foreigners Do Not Come
"Measures to Increase Labor Productivity Must Be Taken"

Tadashi Yanai (75), the richest person in Japan and chairman of Uniqlo, predicted a bleak future for the Japanese economy. On the 26th, Japan's Nittere News released an exclusive interview with Chairman Yanai. He began by mentioning that graduates from the Asian University for Women in Bangladesh, sponsored by the Uniqlo Foundation, do not come to Japan. He said, "(The graduates) go on to study at Oxford University, Columbia University, Sciences Po in Paris, or work at government organizations, the World Bank, the World Health Organization, and global companies, but regrettably, not a single graduate works in Japan."

Yanai Tadashi, Chairman of Uniqlo
Photo by Asia Economy DB

He continued, "Unfortunately, Japan has not grown for 30 years. There is a belief that Japan alone is sufficient, but Japan must become a part of the world." Given that Japan is also facing a rapidly declining birthrate and increasingly severe labor shortages, the current situation of turning attention to overseas talent could lead to a decline in national power.

Regarding the situation where highly educated foreigners do not come to Japan, Chairman Yanai expressed serious concern. He said, "Not only is the labor force decreasing, but intellectual capacity is also declining because Japan only brings in unskilled workers." He added, "Japan needs to bring in more highly educated workers and study ways to increase the productivity of intellectual labor both in Japan and abroad." He pointed out, "The biggest problem is that there are not enough immigrants in middle and senior management positions or those engaged in research and development."

Furthermore, Chairman Yanai emphasized, "Japan needs to become more aware that it is shifting from a middle-class country to one that is not." He stressed, "We must increase the number of people who say 'I want to work with Japanese people' and 'I like Japanese culture.' We need to create a society where we can say to such people, 'Won't you work with us in Japan?' and 'Would you like to live in Japan?'" Finally, he said, "Everyone is working hard, but due to population decline, current labor productivity is low. Without measures to increase labor productivity, Japan has no future."

According to a survey released earlier by the Japanese National Tax Agency, the average annual salary of Japanese people in 2022 was 4.58 million yen (approximately 42.21 million KRW). However, Nittere News pointed out that considering the exchange rate was 80 yen to the dollar in the past and is now about 140 yen to the dollar, Japan is effectively a country with an average salary of around 2 million yen (approximately 18.43 million KRW). Nittere News also noted, "In 2022, Japan's labor productivity per capita was $85,329, ranking 31st out of 38 OECD countries," and emphasized that "Japan must make foreigners want to live in Japan."