Japan records highest-ever foreign nationals as labor crisis looms

TOKYO – The number of foreigners in Japan has peaked as the country grapples with the challenges of the labor crisis amid a growing economy.

As far as the official figures are concerned, the number of foreign nationals residing in Japan hit a record high of over 3.4 million in 2023.

Not only that, employment-related visas also witnessed significant growth amid the country’s efforts to address its acute labor shortage and address the concerns of the business community.

Figures quoted by the Immigration Services Agency imply that as of the end of December 2023, 3,410,992 foreign nationals resided in Japan, up 10.9% from the previous year to mark a record high for the second consecutive year.  

Details confirm that the number of specified skilled workers jumped 59.2% to around 208,000, while trainees under Japan’s technical internship program grew 24.5% to around 404,000 to reach the record high level marked in 2019 before the pandemic, Japan Times reported.

It bears mentioning that though Japan’s economy is growing, the country is facing multiple challenges to sustain it without the required workforce.

Recently, the country also explored the option of revoking the permanent residence permits of foreigners who fail to pay taxes or social security contributions in Japan – a move that invited criticism.

In this regard, well-placed sources confirmed that the government will submit a bill to revise the immigration control and refugee recognition law during the current ordinary session of the parliament. 

In a separate development, the residency process for foreign workers is going to be smooth soon as the government of Japan is set to introduce a new training program for foreigners.

The existing technical intern program for foreigners would be replaced with the new training program which has been designed to provide training for unskilled foreign workers, enabling them to secure Type 1 residency status – a classification awarded to foreign workers having specified skills, thus enabling them to work in the country over the medium to long term.

In a move expected to be tabled during the ongoing parliamentary session, proposed legislation seeks to overhaul Japan’s immigration regime and these amendments are anticipated to come into effect as early as 2027. 

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