Wednesday, July 3, 2024

Japan aims to attract up to 800,000 more skilled foreign workers over next 5 years

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Japan is set to accept around 820,000 skilled foreign workers within the five-year period starting fiscal 2024, multiple media outlets reported, citing sources close to the matter.

This is more than double the figure set for the five-year period established in 2019, when the specific skill visa was introduced. The visa initiative was designed to assist domestic industries in managing the escalating labor scarcity, in the light of latest estimates indicating Japan’s increasing dependence on foreign talent.

The move is aimed at attracting foreign workers to address labor shortages in industries like manufacturing, construction and agriculture.

The government plans to make a decision by the end of March after discussing the matter within the ruling Liberal Democratic Party, the sources said.

Visa program categories for skilled foreign workers

Under the visa program, “Category (i)” specified skilled workers are allowed to stay in Japan for five years, while those with sought-after finely-tuned skills can receive “category (ii)” visas allowing them to bring their families and work indefinitely. In April 2023, the scope of the second category expanded to encompass 11 industries, offering the possibility of permanent residency for workers across all 12 industries currently covered by the system. Additionally, a distinct system for caregivers allows indefinite employment.

Industry-wise division

According to sources familiar with the matter, the figures for fiscal year 2024 regarding the 12 industries currently covered are as follows:

  • Around 173,300 skilled workers are expected in manufacturing industry during fiscal 2024, compared to 49,750 in prior year.
  • Food and beverage production is anticipated to accept 139,000 skilled workers during the year, down from 87,200 last year.
  • Construction industry is expected to receive 80,000 skilled workers, compared to 34,000 in 2023.
  • Around 78,000 skilled workers are anticipated in farming, up from 36,500 in fiscal year 2023.
  • The government is also considering including motor vehicle transport, railroad, forestry, and lumber industries into the system.
  • In the next five years, approximately 34,000 workers are expected to be accepted into the four new sectors under consideration for inclusion.
  • Within this projection, 24,500 individuals are anticipated to work in the road transportation industry, which is poised to confront a shortage of manpower.
  • The railway industry is expected to receive 3,800 workers.
  • Additionally, around 1,000 and 5,000 people are estimated to work in the forestry and timber sectors, respectively, according to the source.
  • As part of its system review, the government also plans to include operations related to textiles within the manufacturing industry, which is already covered by the program.

Specified Skilled Worker visa program

Upon establishment of the visa program in 2019, the government had set 345,150 as the maximum number of specified skilled workers over a five-year period. By the end of November 2023, Japan had accepted 201,307, with arrivals accelerating after a slowdown caused by anti-coronavirus border controls.

In October 2023, the total number of foreign laborers in Japan, including specified skilled workers, surpassed 2 million for the first time, marking a record high for the 11th consecutive year.

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