2  The second challenge is how our labor market will change in the face of further globalization. Since globalization often goes hand in hand with innovation, it will accelerate improvements in labor productivity. The next stage of globalization will entail both an increase in the number of Japanese workers abroad and an influx of foreign workers coming to Japan.
Indeed, government policy has encouraged highly skilled foreign professionals to work in Japan. Through collaboration and cooperation across borders, firms will take advantage of growth opportunities overseas, generating new innovation and raising labor productivity. This process will be accompanied by increased competition, with domestic workers facing overseas competitors in a much broader range of industries and professions.