Japan's Tightrope Walk: New Foreign Worker Policy Aims to Balance Labor Needs and Public Anxiety
Japan's government is planning a new foreign worker program to replace its controversial intern system by 2027, considering a cap of 426,000 workers in the first two years to balance labor shortages with public concerns.
The Japanese government is considering a significant overhaul of its foreign worker policy, proposing to cap new arrivals at around in the first two years of a new program slated to launch in . According to a draft plan presented to an expert panel on Tuesday, the move is part of a delicate balancing act: addressing chronic labor shortage while assuaging growing public wariness over the influx of foreign nationals.
From 'Trainee' to 'Skilled Worker'
At the heart of the reform is the plan to replace the country's , which has long been criticized as a thinly veiled source of cheap labor and has been plagued by reports of human rights violations. The new "Employment for Skill Development" program aims to create a more structured pathway for foreign nationals.
It’s designed to encourage workers, after a three-year training period, to transition to the "Specified Skilled Worker" status. This status allows for longer stays and represents a shift toward treating foreign workers as long-term contributors rather than temporary labor.
A Capped Welcome
The draft plan also reveals a slight reduction in overall targets. The government now aims to accept up to individuals under the specified skilled worker program through , lowering the target set in March 2024. Officials believe the gap can be closed by improving productivity through digital technologies. In total, a combined foreign workers would be accepted under both the existing and new programs, according to the draft.
Pathways and Ceilings
The Specified Skilled Worker status is split into two tiers. The Type I visa, which allows a stay of up to five years for jobs requiring "considerable knowledge or experience," will be subject to the new cap. The Type II visa, for those with more advanced "proficient skills," allows for unlimited renewals, effectively offering a pathway to permanent residency. As of this past June, there were roughly individuals with Type I status and technical interns working in Japan, according to the Immigration Services Agency.
Tokyo's new policy is essentially a bet that technology can partially substitute for immigration. By setting a cap, the government is signaling to its domestic audience that it's managing the influx, while the new system offers a more humane path for needed workers. The policy's long-term success will depend less on the cap itself and more on whether Japan's industries can achieve the ambitious productivity gains the government is counting on.
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