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Amid labor crunch, Japan firms hiring foreign nationals even as Takaichi tightens rules

In a survey conducted last year by Japan's labor ministry, 68.2% of companies said they hired foreign nationals to ease a labor shortage.

Amid labor crunch, Japan firms hiring foreign nationals even as Takaichi tightens rules

A recent government survey revealed that labor shortages are the primary reason Japanese companies hire foreign workers, despite Prime Minister Sanae Takaichi's efforts to tighten rules for non-Japanese residents. According to the survey conducted last year by Japan's labor ministry, 68.2% of companies cited labor shortages as the top reason for employing foreign nationals. This has been the leading reason every year since the survey began in 2023.

Beyond addressing labor shortages, 56% of companies hired foreign workers based on merit, while 18% aimed to internationalize their workforce, with respondents permitted to select multiple reasons. The surge in foreign workers is largely driven by companies' desperate need for labor due to a shrinking population and an aging workforce.

The survey also indicated that more than half of the companies reported a shortage of full-time staff, and nearly 30% had insufficient nonregular staff. The jobless rate in Japan fell to 2.4% in July, the lowest rate in a year, according to a report released by Teikoku Databank.

Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at japantimes.co.jp →

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