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Japan is experiencing a growing number of foreign workers due to an aging population and declining birth rates, resulting in labor shortages across various industries. To address this issue, the government has implemented several programs to welcome skilled foreign nationals.

In 2019, the Specified Skilled Worker program was introduced, allowing foreign nationals with specific occupational skills and Japanese language proficiency to stay in Japan for up to five years, with no limit on renewing their stay. There are two tiers within this program: (i) and (ii). The (i) status allows a stay of up to five years, while (ii) status has no limit on renewals for the period of stay.

The government aims to accept a combined total of approximately 1.23 million foreign workers across 19 sectors by the end of fiscal 2028. This cap includes around 800,000 workers in the Specified Skilled Worker (i) category and about 420,000 workers in the Employment for Skill Development program. The Specified Skilled Worker (ii) status, which requires higher levels of expertise, does not have a numerical limit.

The government determines the number of foreign workers to accept by first estimating the labor shortage by subtracting the projected number of available workers from the estimated number needed by the end of fiscal 2028. They then factor in productivity gains from information technology and the availability of domestic workers through measures such as encouraging older people and women to work.

Certain sectors, like food service and nursing care, have reached their caps for the Specified Skilled Worker (i) status, leading the government to transfer some slots from the Employment for Skill Development program to meet the demand. Despite calls from industry groups for higher caps, the government is hesitant to increase them due to concerns about protecting employment opportunities for Japanese workers.