Japan Boosts Foreign Worker Intake to Combat Labor Shortages
The Japanese government has officially announced its decision to accept up to 1,231,900 foreign workers over the next five years, concluding at the end of fiscal year 2028. This significant expansion of foreign labor intake is a strategic move to alleviate the country's persistent labor shortages, driven by its aging population and shrinking workforce. The plan was formally adopted at a Cabinet meeting on January 23, 2026.
Dual-Track Residency and Skill Development Programs
The comprehensive plan integrates two primary programs for foreign nationals: the existing Specified Skilled Worker (SSW) Type 1 residency status and a new skill development and employment program.
- Under the Specified Skilled Worker Type 1 scheme, Japan aims to accept up to 805,700 foreign workers across 19 fields. This status allows foreign nationals to reside in Japan for a maximum of five years.
- A new skill development and employment program, also referred to as 'Employment for Skill Development' (ESD) or 'Skill Developing Worker Program' (SDW), is set to launch in fiscal year 2027. This program will permit the entry of up to 426,200 foreigners in 17 fields.
The caps for these programs were determined by estimating the number of workers needed in each sector, then subtracting the number expected to be secured domestically and through productivity gains.
Overhaul of Technical Intern System and New Sectors
The new skill development and employment program will replace the controversial Technical Intern Training Program (TITP), which has faced criticism for poor working conditions and restrictions on job mobility. A key improvement under the new system is that foreign workers will be permitted to change workplaces after a specified period, a significant departure from the TITP's regulations. The new program is designed to help participants achieve the skill level required for Type 1 residency status within three years.
In response to evolving labor demands, the government has also expanded the list of eligible job sectors. Newly added fields include linen supply, distribution and warehousing, and resources recycling.
Integration and Language Requirements
To facilitate better integration, the government plans to introduce measures such as requiring foreign workers entering under the new system to take the Japan Foundation Test for Basic Japanese, a Japanese-language aptitude test, starting in August 2026. This initiative underscores Japan's commitment to ensuring foreign workers can effectively participate in society and the workforce. The overall policy aims to create a society where both Japanese citizens and foreign nationals can live safely and securely.
5 Comments
Africa
The government's proactive stance on foreign labor is understandable given the demographics, but I wonder if enough is being done to encourage domestic birth rates and greater participation from women and seniors in the workforce as well.
Michelangelo
Another band-aid for a deeper problem. Won't solve the core issues.
Donatello
This will just depress wages for Japanese citizens. Not a solution.
Bermudez
It's good to see the new program addresses worker mobility, which was a huge flaw in the old system. However, the sheer volume of new entries might still put pressure on certain sectors and local communities.
Coccinella
Allowing foreign workers to fill critical gaps is pragmatic, especially with the language requirements promoting integration. Still, the long-term success hinges on rigorous oversight to prevent any recurrence of past exploitation issues, which were unfortunately common.