TOKYO – In a move aimed at addressing severe labor shortages across various sectors, the government of Japan is exploring a significant increase in the cap on skilled foreign workers eligible for special residency status.
According to media reports, the government plans to raise the cap to more than 800,000 over a five-year period starting from this year. This proposed limit marks a substantial deviation from the current cap, aiming to accommodate the pressing demand for skilled workers.
The residency status for specified skilled workers was initially introduced in April 2019 to support Japan’s labor force. Under this framework, Type 1 status permits foreign workers to engage in employment in Japan for up to five years, while Type 2 status, tailored for highly skilled workers, essentially offers permanent residency.
Currently, Type 1 status is granted to foreign workers in 12 designated sectors, including nursing care, construction, food service, manufacturing of industrial products, and agriculture. Notably, Type 2 status covers the same sectors, with the exception of nursing care.
In a bid to address emerging needs, the government is considering expanding the coverage of Type 1 status to include four additional sectors, such as automobile transport and forestry, Japantimes reported.
The government has traditionally set limits on the number of foreign workers accepted in each sector over a five-year period to safeguard employment opportunities for Japanese citizens. As far as the numbers are concerned, the total maximum intake over the five years leading up to fiscal 2023 amounted to 345,150 individuals.
Officials are currently assessing labor shortages in various sectors to determine the appropriate caps for the five years from 2024 to fiscal 202. Projections indicate an anticipated shortfall exceeding 800,000, even factoring in potential wage increases and productivity enhancements for Japanese workers.
Notably, the automobile transport sector alone is projected to require approximately 25,000 skilled foreign workers to fulfill roles such as taxi drivers, bus drivers, and truck drivers.
As of November 2023, approximately 200,000 foreign workers were residing in Japan under the special residency status. However, there exists a notable variance in utilization across sectors, with the manufacturing of industrial products sector reaching nearly 80% of its cap for the fiscal years 2019 to 2023, while the accommodation sector lags significantly behind at below 10% of its cap.
