The Japanese government along with private employers have started a public-private
initiative to standardize specifications for robots, called "robot work-style reforms" with the goal of expanding the use of robot labor. Meanwhile, automation continues to cause contractions in the Japanese labor market with the number of jobs replaced by automation
increasing by another 30%. Japan provides a prime example of the global pandemic accelerating the push further into the digitization and automation of work.
Japan’s unique labor market makes it better positioned for automation. Labor shortages are a common challenge for global employers operating in Japan. A third of the nation’s population is aged 65 and above causing the nation’s workforce to shrink by more than half a million people per year. Japan is also
culturally reluctant to bring in women and foreign labor to fill vacant positions. Additionally, recent efforts by Japanese government to implement
workplace reforms to change its notorious long working hours culture are being challenged by the COVID economy.
All these factors have spurred robot development in Japan, which gained support from government, business, and even labor groups. It means companies that participate in such an initiative could face less legal and social challenges.
The new initiative is about data sharing and standardizing Robot’s working environment. It is not rare that robots have been used in different industries in Japan, from
building a dam to
stocking the shelves. However, cost became the biggest obstacle because there are no common standards for robots in workplace, which leads to inefficiency and redundancy.
To build shared rules, Japan’s Ministry of Economy, Trade and Industry launched an initiative in July 2020 and 20 companies have participated including three biggest convenience store chains in Japan. The goal of the program is to create a consistent robot-friendly working environment, such as a similar aisle width or a similar color of walls that is easier for robots to identify. By codifying these regulations, robots can work in any store in Japan.
The companies are also collaborating in creating a shared database and a framework that can be used across the industry. The database is anticipated to be finalized by 2024 and implemented in 2025. A cost estimation by the government's New Energy and Industrial Technology Development Organization (NEDO) suggests that the initiative could reduce companies' cost by 30% compared to individually developed robot technology.
CHROs and HR executives who oversee Japan needs to proactively monitor the situation and review its own workforce. Robots replacing human labor is no longer limited to science fiction; there is a very real possibility, at least in Japan. McKinsey expects that in the future, 56% of the jobs in Japan could be taken care of by AI or robots. HRs need to focus on transforming its workforce to adapt to the new era. For instance, Microsoft anticipates that 149 million jobs will be created worldwide on data analysis in 5 years. In Japan, job training is mainly used to maintain the current workforce. As the pandemic accelerates the transformation of the economy, investment in upgrading the workers’ skills will be essential to ensure the country's workforce is resilient to the changing job environment.