A government survey and business reports show companies are turning to overseas workers to address staff shortages while Prime Minister Sanae Takaichi pursues stricter rules for non-Japanese residents.
68.2% of companies in a labor ministry survey said they hired foreign nationals to ease labor shortages.
Employers also cited merit-based hiring (56%) and workplace globalization (18%) as reasons for bringing in foreign staff.
The hiring surge comes as Prime Minister Sanae Takaichi moves to tighten rules for non-Japanese residents, creating potential tensions between policy and employer needs.
Japan's recent government survey and business reports indicate that companies are increasingly hiring foreign nationals to plug persistent labor shortages. The labor ministry's survey found that 68.2% of companies said they employ non-Japanese workers to ease a lack of labor—making it the top reason in the survey's history since 2023.
Survey responses allowed multiple reasons. Besides the labor-shortage motive, 56% of companies said they hired foreign nationals based on merit, and 18% said they were seeking to globalize their workplaces. These answers show employers are using overseas talent both as an operational fix and as a strategic workforce choice.
Separate business reporting by Teikoku Databank, cited alongside the survey, found that more than half of companies reported insufficient full-time staff. Nearly 30% said they did not have enough nonregular staff. The macro labor market is tight: the nationwide jobless rate fell to 2.4% in July, the lowest in a year, indicating strong demand for workers across sectors.
Prime Minister Sanae Takaichi is pursuing tighter rules for non-Japanese residents. The government's shift toward stricter residency and visa conditions is occurring while firms deepen their reliance on foreign workers. That contrast frames a policy tension: businesses need labor now, while policymakers are raising barriers for some categories of migrants and residents.
Companies in Japan are leaning on foreign nationals to address widespread labor shortfalls. That trend coexists with a government push to tighten rules governing non-Japanese residents, creating a practical mismatch between firm-level hiring needs and national policy direction.
Takaichi’s new policies are pushing away foreign workers. Rural areas and strained industries will pay the price.
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