This is a government that needs anything to distract from its failures indeed. But that's not changing unfortunately - given there seems to be no real direction to fix the economy that is currently in a gutter, I think it's pragmatic to restrict immigration. Crime is skyrocketing, both Japanese and immigrants - even the Yakuza are getting into scam operations on Katagi, i.e. normal people. This basically never happened before and is a turning point. It's what happens in a bad economy and will just continue to get worse.

Low wage immigrants will not be able to fix the economy (demographics related decline is still decades away, yes it is important long term but not if the fundamentals don't improve). They will increase crime though since that's just what happens when you are poor in a bad economy. There won't be culling of poor locals but restricting inpu where possible, immigration, seems ok given the overall picture.