With a shrinking population, tax revenues decrease, impacting public finances. A smaller tax base limits the government’s ability to invest in infrastructure, education and other essential services.

The rising cost of living is another consequence.

In Japan, the demographic slowdown is already taking a toll on the country’s nursing homes and related service facilities, as revealed by a recent survey conducted by nursing care groups.

According to the findings, a staggering 27 percent of these facilities may face bankruptcy or forced closure in the coming years if the current trend of soaring prices and utility costs persists.

The potential closure of a substantial number of nursing homes and related service facilities in Japan has far-reaching implications for the country’s aging population and the overall healthcare system. And the reliance on foreign workers, especially those from the Philippines, may not prove enough to sustain it.

How severe the rising cost of living is in Japan was revealed by a survey conducted recently by the support group Food Bank Caravan in Tokyo’s Toshima ward.

It was discovered that full-time employees, accounting for approximately 20 percent of food bank users since the autumn of 2022, have increasingly started to rely on food banks due to limited wages and rising prices.

The support group initially expected students to be the primary users, but also part-time workers were found to rely on their services.

The survey conducted during food distribution events showed that the percentage of regular employees using food banks exceeded 20 percent. The trend continued in subsequent surveys, indicating that even full-time employees are facing financial challenges.

The average monthly salary for full-time employees was around 223,000 yen (US$1,570), but it was found to be insufficient.

Other organizations working in Tokyo have also observed an increase in the number of full-time employees, including those in business suits, seeking assistance from food banks.

The survey highlights the alarming reality that unhealthy demographics lead to an unhealthy economic landscape.

The potential bankruptcy or forced closure of a significant portion of Japan’s nursing homes and related service facilities paints a grim picture of the country’s aging population.

With a shrinking workforce and an increasing number of elderly individuals in need of care, the closure of these establishments would exacerbate an already strained healthcare system. The burden on the remaining nursing homes would intensify, leading to overcrowding, inadequate resources, and diminished quality of care.

Moreover, the closure of nursing homes would disrupt the continuum of care for elderly individuals who rely on these facilities for their daily needs.

Many nursing homes offer specialized services tailored to meet the unique requirements of aging individuals, including medical assistance, physical therapy and social engagement. The potential loss of these services would severely impact the overall well-being and quality of life of the elderly population.

As the demand for nursing care continues to rise, Japan has increasingly turned to foreign workers to fill the labor gap in its nursing homes and related service facilities.

Filipino workers, in particular, but also Vietnamese and Indonesian, have played a crucial role in providing care to Japan’s aging population. However, relying solely on foreign workers to sustain these facilities may not be a viable long-term solution.

There are several challenges associated with this reliance on foreign workers. These nurses are required to pass the NBE (Nursing Board Examination) in Japanese to become registered nurses, but their limited language proficiency and unfamiliarity with Japan’s unique nursing practices pose significant hurdles.

Language barriers and cultural differences further hinder their adjustment. The hospitals employing nurses also face difficulties in instructing them and bridging the gaps in nursing practices and regulations. This results in substantial costs, both economically and psychologically, for the hospitals responsible for training and education.

Furthermore, there is a need to explore alternative models of care, such as home care services and community-based programs, which can alleviate the strain on nursing homes and provide more tailored solutions to meet the diverse needs of the aging population.

By embracing technology and innovation, Japan can also enhance efficiency in healthcare delivery and alleviate some of the burdens faced by nursing homes.

*The views expressed in this article are those of the author and do not necessarily reflect the official editorial position of UCA News.