Episode #210: International Japanese Staff Armageddon

Japan’s supply of internationally experienced, English-speaking staff has been shrinking for years. After peaking at 83,000 Japanese students studying overseas in 2004, that number fell to around 57,500 by 2011 and only slightly recovered to just above 60,000.
By contrast, Korea—half Japan’s population—sends over 73,000 students abroad. This limited overseas exposure means fewer candidates ready to lead in international environments—posing serious challenges for both 日本企業 (Japanese firms) and 外資系企業 (foreign companies operating in Japan).

Mini-summary: The number of globally trained Japanese professionals is far below what Japan’s economy demands, widening the talent gap for bilingual, internationally capable leaders.

Japanese corporations are expanding aggressively overseas to counteract the shrinking domestic market. In the past, they relied heavily on long-term expatriate assignments, but this approach has become unsustainable due to Japan’s aging population and growing staff shortages at home.

Today, corporate globalization demands that overseas subsidiaries be fully integrated with headquarters operations. This shift has intensified the need for globally minded professionals—individuals who are fluent in English, culturally adaptable, and capable of leading across international boundaries.

Mini-summary: Japanese companies are now competing head-to-head with multinational firms for the same limited pool of internationally experienced, English-proficient talent.

The Ministry of Education (MEXT) has launched multiple initiatives:

• Reinventing Japan Project (2011)

• Tobitate! (Leap for Tomorrow!) Campaign (2013)

• TeamUp Program (2015)

The national goal was to double overseas students to 120,000 by 2020—a target still unmet. While the Japan Revitalization Strategy (2013) recognized the issue, structural and cultural barriers continue to limit progress.

Mini-summary: Despite ambitious policy goals, government programs haven’t reversed the long-term decline in Japan’s global human capital.

A British Council (2014) study identified four key reasons:

1. Lack of English proficiency (51%)

2. High cost (41%)

3. Safety concerns (32%)

4. Perceived difficulty of foreign coursework (12%)

Cultural shifts post–Lehman Shock and the 3/11 disaster also reinforced inward-looking attitudes. Young people value safety, family, and stability, making overseas education seem risky and “mendokusai” (too troublesome).

Mini-summary: Economic insecurity and risk aversion discourage Japanese youth from pursuing international study, despite sustained interest.

Organizations can take proactive steps:

• Offer study-abroad scholarships with return-service agreements.

• Build flexible work environments that attract global-minded youth.

• Create English-speaking office days (e.g., Tuesdays and Thursdays).

• Train middle managers in coaching and communication to support young employees.

With Japan’s youth population halving over the next 40 years, leadership and engagement strategies will determine which companies survive the coming “hiring winter.”

Mini-summary: Competitive companies must cultivate, reward, and retain international talent through flexibility, language use, and leadership development.

Japan’s shortage of globally skilled talent is restricting the growth of both domestic and foreign companies.

Government initiatives to encourage overseas study have fallen short of their targets.

Cultural flexibility and consistent use of English in the workplace are essential for retaining internationally minded employees.

Leadership coaching and strong communication training will become critical competitive advantages as Japan faces an intensifying demographic decline.

Founded in the United States in 1912, Dale Carnegie Training has supported professionals around the world for over a century in leadership, sales, presentation, executive coaching, and DEI training.
Since opening our Tokyo office in 1963, we have continued to empower both Japanese and multinational companies to build globally competitive, high-performing teams.