The first signs of declining interest among the young in science and engineering appeared almost two decades ago, after Japan reached first-world living standards, and in recent years there has been a steady decline in the number of science and engineering students. But only now are Japanese companies starting to feel the real pinch.
By one ministry of internal affairs estimate, the digital technology industry here is already short almost half a million engineers.
Headhunters have begun poaching engineers midcareer with fat signing bonuses, a predatory practice once unheard-of in Japan’s less-cutthroat version of capitalism.
The problem is likely to worsen because Japan has one of the lowest birthrates in the world. “Japan is sitting on a demographic time bomb,” said Kazuhiro Asakawa, a professor of business at Keio University. “An explosion is going to take place. They see it coming, but no one is doing enough about it.”
This is happening all over the developed world. To much talent has been directed towards being a lawyer or a banker. Add that to a shortage of kids general and young engineers are going to be in high demand.