In a Cabinet decision made on March 29, the Japanese government announced the inclusion of four additional sectors under the “specified skilled worker” residency status, allowing up to 820,000 foreign workers to enter the program by the 2028 fiscal year.
As Japan faces a declining population, resistance to immigration has decreased, making it easier to implement policies that attract foreign workers. The four new sectors—automotive transportation, railways, forestry, and the timber industry—are part of the government’s efforts to address labor shortages in these critical fields. However, despite the progress, some challenges remain.
The specified skilled worker residency status was introduced to fill significant labor gaps in industries struggling to find enough workers. To date, 12 sectors, including nursing care, construction, agriculture, and food services, have already been approved to hire foreign workers under this program.
There are two categories of specified skilled workers: Type (i) allows individuals to work in Japan for up to five years, while Type (ii) permits indefinite residence and the ability to bring family members.
As of October 2023, approximately 2.05 million foreign workers were employed in Japan.
When the specified skilled worker program launched in 2019, it initially faced opposition, particularly from conservative members of the ruling Liberal Democratic Party (LDP). Concerns were raised that the program could lead to increased job competition and negatively impact Japan’s labor market. There was also a debate within the Diet over whether this was, in essence, an immigration policy.
Opposition parties criticized the government’s rapid rollout of the program, pointing to the lack of clear guidelines on the number of workers to be accepted and the absence of detailed plans to support foreign workers upon their arrival. Initially, only construction and shipbuilding industries were allowed under the Type (ii) status.
Rising Dependence on Foreign Labor in Japan
A 2023 study by Mitsubishi UFJ Research and Consulting Co. showed that Japan’s reliance on foreign workers had more than doubled since 2013. As the labor shortage becomes more evident, opposition to foreign labor has softened, with an LDP official noting that “concerns about foreign workers have diminished.”
In August 2023, the government expanded Type (ii) status to 11 additional sectors, making it easier for foreign workers in those fields to secure permanent residency. The recent inclusion of four more sectors continues this trend, reflecting Japan’s growing need for skilled foreign labor.
Although initial projections estimated that around 1 million foreign workers would be needed over the next five years, this figure was later revised down to 820,000. Increased productivity in Japanese industries and the need to safeguard domestic jobs for Japanese workers contributed to this adjustment.
Over the past five years, more than 200,000 foreign nationals have found employment through the specified skilled worker program. These workers play a crucial role in industries that require minimal training, making them highly valuable to employers. Furthermore, unlike the situation five years ago, there has been little resistance from LDP members regarding the expansion of the program to welcome more foreign workers.
An official from the Immigration Services Agency highlighted the growing importance of foreign labor in Japan’s economy and stressed the need for collaboration between the public and private sectors to promote the benefits of working in Japan.
