Japan to overhaul foreign labor system with new 426,000 worker cap, skill-based residency

Tokyo [Japan], December 23 (ANI): Japan is preparing for a major overhaul of its foreign labour policies, balancing a desperate need for workers with growing public concern over immigration, Kyodo News reported.
The government announced plans to cap the number of trainees under its upcoming "Employment for Skill Development" program at approximately 426,000 for its first two years, starting in fiscal 2027.
The move comes as Japan reviews its broader foreign worker policies, including stricter measures against visa overstays, following instructions from Prime Minister Sanae Takaichi. Public concern over the growing number of foreign nationals in the country has also influenced the review.
At the same time, Japan is grappling with a chronic labour shortage caused by its ageing population. To address this, the government plans to scrap the long-criticised Technical Intern Training Program, which has often been accused of enabling cheap labour and human rights violations, and replace it with a new framework called the Employment for Skill Development program, as per Kyodo News.
Under the new system, foreign workers will be encouraged to move to the Specified Skilled Worker status after three years of employment, allowing them to stay in Japan for longer periods.
A rough draft of the plan, presented to a panel of experts on Tuesday, shows that Japan aims to accept up to about 805,000 people under the specified skilled worker programme through March 2029. This is slightly lower than the earlier target of 820,000 set in March 2024. The government said the reduced number is achievable by boosting productivity, including through greater use of digital technologies, according to Kyodo News.
According to the draft, a total of around 1.23 million foreign workers would be accepted under both the existing and new systems combined. Prime Minister Takaichi's Cabinet is expected to approve the plan in January after further deliberations.
The new training programme will cover 17 sectors, including agriculture and construction, compared with the 19 sectors currently included under the specified skilled worker system.
Japan offers two types of visas under the specified skilled worker category. The first allows a total stay of up to five years, while the second can be renewed indefinitely, effectively offering a route to permanent residency.
The first category is for workers with "considerable knowledge or experience," while the second applies to those with more advanced and "proficient skills," according to the government.
In principle, only foreign nationals holding the Specified Skilled Worker I status will be subject to the proposed cap.
As of the end of June, around 333,000 people held Specified Skilled Worker I status, while about 449,000 technical interns were working in Japan, according to data from the Immigration Services Agency. (ANI)