Nikkei: This year, the country released a first of its kind national survey that highlighted the extent of housing discrimination foreigners face. According to the study, released by the Ministry of Justice in March, out of 2,044 foreign residents who had sought housing within the past five years, 39.3% reported being turned down because they were not Japanese.
The impact is now being felt by employers. In recent years, numerous Japanese manufacturers and services have been trying to make up for the country’s shrinking labor force by looking elsewhere for workers. They want to create an inflow of talent, but housing discrimination could become a dam. As of last October, Japan had 1.08 million foreign workers, up 58% from five years earlier, accounting for around 2% of the total workforce, according to the Ministry of Health, Labor and Welfare. […]
The IT industry is suffering from a significant labor shortage, and the consultancy was acutely aware of the discrimination problem last year when it welcomed a systems engineer from the Philippines. To dodge any hassles, the company consulted a property agent that caters to foreigners, whom industry players describe as an “underwhelming minority” in Tokyo. Even real estate agencies with experience helping foreigners run into the same problem: “Almost nine of 10 private housing units in Tokyo do not allow foreign tenants,” according to Masao Ogino, CEO of the Ichii Group. “It is still an extremely exclusive market.”
Tsuyoshi Yamada, a human resources manager at Total OA Systems, said a lack of sufficient support for non-Japanese employees, including in regard to housing, could throw a hurdle up in front of the company’s plan to bring in overseas talent. This concern is particularly strong for smaller IT companies like Yamada’s. “Even if we finally find a promising engineer,” he said, “retention could become a problem.”