Japan’s foreign national population has reached an unprecedented high, with over 3.5 million residents as of mid-2024, according to newly released data from the Immigration Services Agency. This demographic shift, spurred by an increasing demand for labor to counteract the effects of the country’s aging society and declining birthrate, reflects broader economic and societal changes taking place in one of the world’s most developed economies.
As of June 2024, the number of foreign nationals residing in Japan stood at 3,588,956, marking a sharp increase of 177,964 compared to the end of 2023. These figures underline the pivotal role that foreign workers are playing in Japan’s workforce, especially in industries facing chronic shortages of domestic workers. Among the various categories of foreign residents, “specified skilled workers” have seen the most significant growth, rising by 20.8% to reach 251,747 individuals. The overall increase in foreign workers comes as Japan struggles to cope with the economic and social challenges posed by a rapidly aging population and low birthrate, phenomena that have been intensifying over the last few decades.
Japan has long been a global economic powerhouse, but it now finds itself at a critical juncture, dealing with a demographic crisis that threatens its economic future. The country’s population has been shrinking for over a decade, and in 2023, it recorded its sharpest population decline in history. Japan’s fertility rate, one of the lowest in the world, coupled with the fact that over 29% of the population is aged 65 or older, has created a pressing need for labor in key industries such as healthcare, construction, and manufacturing.
The labor shortage is not merely a challenge for Japan’s economy; it is also a social dilemma. A decreasing workforce implies that fewer individuals are contributing to the national pension system, which supports an increasing number of retirees. Without significant reforms or new sources of labor, such as foreign nationals, Japan’s economic growth potential could be significantly hampered. The government has recognized this and is gradually embracing the idea that foreign workers are essential to maintaining the country’s economic vitality.
One of the key measures the government has introduced to address these labor shortages is the “specified skilled worker” visa, a category introduced in 2019. The visa allows foreigners to work in sectors that face severe labor shortages without undergoing the traditional technical training programs that had been a prerequisite in the past. This visa has been pivotal in attracting workers to Japan’s most vulnerable industries, including caregiving, construction, agriculture, and food services.
The surge in the number of specified skilled workers by 20.8% in the first half of 2024 highlights the growing reliance on this labor pool. Unlike previous immigration programs, which focused heavily on bringing in workers for short-term or internship-based employment, the specified skilled worker visa allows for a more permanent and stable workforce. Workers can stay in Japan for up to five years, and in some cases, they can even apply for permanent residency after fulfilling certain conditions.
This new visa category reflects a shift in Japan’s traditionally cautious approach toward immigration. In the past, the country has been known for its stringent immigration policies, emphasizing the cultural and linguistic integration of foreign workers. However, faced with the urgent need to fill job vacancies, the government has relaxed some of these requirements to make Japan a more attractive destination for foreign labor.
Another significant contributor to the rise in foreign nationals is Japan’s technical internship program, which saw a 5.2% increase in participants, reaching a total of 425,714 by June 2024. Originally designed to transfer skills to workers from developing countries, the program has evolved into a crucial source of labor for industries suffering from workforce shortages. Most interns are employed in sectors such as manufacturing, agriculture, and construction—fields that have struggled to attract enough domestic workers.
However, the technical internship program has faced criticism both domestically and internationally for the exploitation of interns, poor working conditions, and low wages. Human rights groups have raised concerns about abuses within the system, and calls for reform have grown louder. In response to these concerns, the Japanese government has promised to strengthen oversight and improve protections for foreign workers, including more rigorous enforcement of labor laws and providing workers with better access to legal assistance.
Despite these issues, the program remains a cornerstone of Japan’s labor strategy, particularly for industries that are otherwise unable to fill critical roles. Many businesses argue that without foreign interns, their operations would face severe disruptions, further illustrating the growing dependency on foreign labor.
While temporary workers have been key to filling immediate labor needs, the number of permanent foreign residents has also seen steady growth, with the total reaching 902,203 as of June 2024, representing a 1.2% increase. Permanent residents represent the largest category of foreign nationals in Japan, reflecting a shift toward longer-term integration of foreign workers into Japanese society.
For decades, Japan has been slow to recognize the need for immigration as a solution to its demographic crisis, partly due to its emphasis on maintaining a homogenous cultural identity. However, in recent years, there has been a gradual acknowledgment that foreign nationals, especially those who choose to stay long-term, are critical to the country’s future. Many permanent residents come from neighboring Asian countries, such as China, South Korea, and Vietnam, but the number of residents from other regions, such as Southeast Asia and South Asia, is also on the rise.
Despite the increase in permanent residents, Japan still lags behind other developed nations in terms of immigrant integration policies. While the government has introduced initiatives to support foreign nationals, such as Japanese language courses and assistance with daily life, challenges remain. Many foreign residents struggle with social inclusion, cultural adaptation, and accessing healthcare and education services. Nevertheless, the growing number of permanent residents suggests that Japan is slowly evolving into a more diverse society, one that will need to continue adapting to the presence of foreign nationals in all aspects of life.
In addition to the growing number of foreign workers and residents, Japan has also seen a sharp increase in foreign arrivals for tourism in 2024. The first half of the year saw 17,820,629 tourists visit the country, marking a strong recovery from the COVID-19 pandemic, which decimated the global travel industry. Japan’s tourism sector, which was once a key pillar of the economy, has made a remarkable comeback thanks to the easing of travel restrictions, pent-up demand from international travelers, and the country’s unique cultural appeal.
Popular tourist destinations like Tokyo, Kyoto, and Osaka have once again become bustling hubs of activity, with travelers eager to experience Japan’s rich cultural heritage, advanced technology, and natural beauty. The tourism boom has been a welcome relief for many businesses that rely heavily on foreign visitors, such as hotels, restaurants, and retail shops. In the wake of the pandemic, the government has also stepped up efforts to promote regional tourism, encouraging visitors to explore lesser-known areas of the country to boost local economies.
However, the resurgence of tourism has also led to renewed discussions about Japan’s capacity to manage the influx of foreign visitors, especially in light of the labor shortage. Hospitality and service industries, in particular, have been struggling to meet the growing demand due to a lack of workers. This has prompted calls for more flexible immigration policies to allow more foreign workers to enter the country and fill these gaps.
Japan’s record number of foreign nationals is both a reflection of its current economic realities and a signal of the challenges ahead. As the population continues to age and birthrates remain low, the need for foreign workers will only grow more urgent. However, Japan’s immigration policies will need to evolve further if the country is to effectively integrate these workers and harness their contributions for long-term economic growth.
In addition to expanding visa programs like the one for specified skilled workers, experts suggest that Japan needs to implement more comprehensive reforms that address the social and cultural integration of foreign nationals. This includes providing better support systems for language acquisition, healthcare access, and education for both workers and their families. Without such measures, the risk of social isolation and economic inequality among foreign nationals could undermine their potential contributions to Japan’s society.
Japan must also address concerns over labor rights and working conditions, particularly within the technical internship program. Strengthening regulations and enforcement mechanisms to protect foreign workers from exploitation is critical for maintaining the integrity of the immigration system and ensuring that Japan remains an attractive destination for skilled labor.
