TOKYO: In response to severe labor shortages across diverse sectors, the Japanese government is contemplating a substantial increase in the cap on skilled foreign workers eligible for special residency status, aiming to hire over 800,000 workers over five years starting this year.
Media reports indicate that this proposed limit represents a significant departure from the existing cap, reflecting the government’s recognition of the urgent need for skilled labor to address workforce challenges.
The specified skilled worker residency status was initially introduced in April 2019 to support Japan’s labor force.
Under this system, Type 1 status allows foreign workers to engage in employment in Japan for up to five years, while Type 2 status, designed 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.
Type 2 status covers the same sectors, except nursing care. To meet evolving demands, the government is contemplating expanding the coverage of Type 1 status to include four additional sectors, such as automobile transport and forestry, as reported by the Japan Times.
Traditionally, the government has imposed limits on the number of foreign workers accepted in each sector over five years to protect employment opportunities for Japanese citizens.
The total maximum intake over the five years leading up to fiscal 2023 was set at 345,150 individuals. Officials are currently evaluating labor shortages in various sectors to determine appropriate caps for the five years from 2024 to 2028. Projections indicate an expected shortfall exceeding 800,000 workers, even with potential wage increases and productivity enhancements for Japanese workers taken into account.
The automobile transport sector alone is anticipated to require around 25,000 skilled foreign workers, filling roles such as taxi drivers, bus drivers, and truck drivers. As of November 2023, approximately 200,000 foreign workers resided in Japan under special residency status.
However, there is notable variation in utilization across sectors, with the manufacturing of industrial products sector reaching nearly 80% of its cap for fiscal years 2019 to 2023, while the accommodation sector lags significantly behind at below 10% of its cap.
