Jobs Up at Japanese Southland Firms

Japanese companies in Southern California boosted their employment by 44% over the last decade to 111,747 jobs, with automotive, services and trade-related businesses enjoying the greatest growth, according to a survey released Thursday.

The Japan Business Assn. of Southern California’s survey also showed a drop in employment by Japanese machinery and electronics companies, which is blamed on the slowdown in the Japanese economy, currency shifts and passage of the North American Free Trade Agreement.

Spurred by that 1995 free trade agreement, some Japanese electronics firms, such as Mitsubishi, have shifted production from California to Mexico to take advantage of the lower-cost work force.

The survey showed that Japan remains a significant player in the state’s economy in spite of troubles back home. It bolsters recently released figures from the California Trade and Commerce Agency showing Japan as the state’s leading foreign employer (144,300), followed by Britain (87,900) and Canada (69,200). The total employment by foreigners in California is 549,600, just under 4% of the work force.

Japan’s position in the world has undergone a 180-degree shift since the Japan Business Assn. conducted its last survey.

A decade ago, Japan was viewed by many as a global Goliath whose aggressive foreign expansion threatened U.S. sovereignty. Today, the United States is enjoying a boom economy while Japan struggles to resurrect its debt-laden banking sector and pull its economy out of the doldrums.

Though the association could not provide annual figures, it said Japan’s presence in California grew in most years over the last decade except for a sharp fall-off in 1992, when both the California and Japanese economies encountered trouble.

But Soichiro Kiyama, executive director of the 534-member JBA, said Japanese companies are still opening new offices in Southern California, particularly in high technology, trade-related businesses and services.

In recent years, the large Japanese auto makers, whose U.S. headquarters are all in Southern California, have boosted employment here in part to support dramatically expanded U.S. manufacturing operations in the Midwest.

But although the work force has increased significantly over the last decade, the number of Japanese expatriates in California has remained about the same at 3,278. Kiyama said Japanese firms appear to be relying more on local talent. He also said it is increasingly difficult to get Japanese executives to move abroad because of the strains on family life.

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Rising Sun

The auto industry remains by far the biggest source of Southern California employment by Japanese companies, which has grown 44% overall in a decade:

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Industry 1987 1997 Auto business 27,469 42,364 Banks 12,330 13,102 Electric/electronic 14,575 11,435 Trade,commerce 3,800 10,925 Services 4,219 8,057 Misc. manufacturing 1,669 5,816 Transportation, warehousing 2,169 4,474 Machinery, parts 2,306 1,966 Metal 1,423 1,303 Precision machinery 3,252 1,117 Chemical 1,076 3,051 Other 3,322 8,137 Total 77,610 111,747

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Source: Japan Business Assn. of Southern California