Japan's labor shortage: Can new visa reforms solve the crisis?

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Written by Asaël Häzaq on 09 July, 2024
Facing a labor shortage and a worsening demographic situation, Japan is gradually opening up to immigration, particularly by reforming its visa policies. However, the country remains torn between economic necessity and a social model built on homogeneity. Here's an analysis.

Japan is actively recruiting and aims to attract foreign professionals. On April 5, the government announced that it would welcome up to 800,000 skilled workers within the next five years. According to the Ministry of Labor, the number of foreign professionals increased by 12.4% between 2022 and 2023, reaching 2.04 million foreign workers, a record high.

Japan intends to keep breaking records. Faced with an alarming demographic crisis, the state has no choice but to turn to immigration. The era of the Abe government's policies in the 2010s, which preferred investing in robotics over immigration, is over (although some politicians still support this idea).

More foreign workers to counter labor shortages

Official figures clearly show an increase in the number of immigrants in Japan. The country issued 4.1 million visas in 2023, three times more than in 2022. However, this is still far from the pre-pandemic level, with 8.2 million visas issued in 2019. Most foreigners in Japan are from Asia, particularly China (2.4 million visas in 2023), the Philippines (518,489 visas), and Vietnam (327,905 visas).

Businesses, especially those in construction, food processing, transportation, and healthcare, are urging the government to expand its immigration policy as they are most affected by labor shortages. According to their observations, young Japanese are rejecting tough and demanding jobs, so they cannot do without foreign labor. Due to pressure, Japan ended up adopting reforms to expand visa availability.

Companies, particularly those in sectors facing labor shortages, keep urging the government for more open immigration policies. For instance, retail giant AEON recently announced plans to recruit 4,000 foreign workers by 2030 (through the Skilled Worker Visa), adding to the 1,500 it currently employs.

Improving conditions for foreign workers

Reforms passed in 2023 and 2024 aim to improve conditions for foreign workers. In 2023, Japan expanded its controversial Specified Skilled Worker Visa 1 to more industries (automotive transport, railways, etc.). This visa, less protective than the type 2 visa, only allows a five-year stay and prohibits family reunification. The type 2 visa, on the other hand, is renewable indefinitely and permits family reunification.

Also, in 2023, Japan broadened the scope of the type 2 visa, meaning that holders of a type 1 visa stand more chances of upgrading to a type 2 visa. However, "better chance" does not mean an easier process. Foreigners still need to pass complex tests, which are entirely in Japanese.

The paradox of Japan's immigration policy

On one hand, the state recognizes the urgency of reforming its system and welcoming more foreigners. On the other, nationalist sentiments fuel fears. Consequently, Japan struggles to attract foreign workers, certainly not as many as popular destinations like Canada, the United States, or Australia.

In June, the Parliament passed new programs to protect foreign workers from exploitation by some companies. Less skilled expatriates, due to their precarious visa status, are particularly vulnerable. The new measures offer them greater protection and allow them to change employers. Simultaneously, two other reforms have tightened rules for expatriates.

The first reform, enacted in March 2024, addresses the controversial "technical internships." Many cases of abuse and mistreatment of foreign "trainees" have been reported since this status was established in the 1990s. The March reform commits to protect foreign workers better, but also the revocation of permanent resident status for tax evasion or crimes (burglary, assault, or theft).

The second reform applies to asylum seekers, with a streamlined process and easier deportation if an application is rejected. Justice Minister Ryuji Koizumi sees nothing controversial about cracking down on those who break the rules. He views this as essential for peaceful relations between Japanese and foreigners.

Why immigration is a sensitive topic in Japan

Experts believe that Japan has 15 years to triple its immigration and save its economy. Faced with this alarming ultimatum, one would expect a more straightforward immigration policy. But Japan is taking its time. When Joe Biden accused Japan of xenophobia in early May, the country dismissed it as a misunderstanding of its policies. Prime Minister Kishida insists on taking time, ignoring economists' warnings.

How can Japan attract foreign workers without a consistent immigration policy? The country struggles even to use the word "immigration." For Japanese society, "immigration" equates to "social instability", viewing crimes committed by foreigners as proof that "foreigners are the danger," ignoring the issues caused by Japanese citizens themselves. This image has been cultivated alongside the notion of a homogeneous Japan—a notion of "ethnic purity" perpetuated to this day. On May 24, Prime Minister Kishida echoed Abe, a supporter of this "ethnic purity," saying: "To preserve the country, the government does not intend to adopt an alleged immigration policy by accepting foreigners and their families without imposing limits on their stay." -- which is far from a welcoming stance.

Since the 2000s, the number of foreigners has been gradually increasing, but they still represent just 3% of the population. Nonetheless, nationalist rhetoric about ethnic purity is alarming. In other words, in the name of social homogeneity, expatriates will be admitted in limited numbers and only after strict selection processes.

Ending the myth of a "homogeneous Japan"

The myth of Japanese ethnic purity, reinforced after World War II, is upheld by the Liberal Democratic Party (LDP), which encompasses both liberal and radical views.

Former Prime Minister Tarō Asō, now Deputy Prime Minister and LDP member, unabashedly promotes a nationalist (and sexist) narrative. In 2020, he celebrated Japan's over 2,000-year history of "one language, one ethnic group, one dynasty," ignoring the Ainu, the country's first inhabitants who were colonized and still face discrimination, and the Zainichi, descendants of Koreans brought to Japan during the annexation, also discriminated against. Other ethnic minorities also fight for recognition, reminding that Japan has never been as homogeneous as it claims and should embrace its multiculturalism as a strength.

Is Japan ready to welcome more foreigners?

Highly skilled immigrants may not feel Japan's "double face" as acutely, but less skilled workers face significant challenges. These experiences vary, of course, depending on individual circumstances.

Sociologists argue that the question is not whether Japan is ready but whether it will take favorable actions toward immigration. Increasing the number of work visas is not enough. There needs to be a strong political will to promote immigration, with real programs to welcome foreigners and end discrimination against less skilled expatriates. For many, the "Japanese dream" has fallen short. Despite the industries, agriculture, and personal care sectors facing labor shortages, little seems to be done to facilitate their integration. Sociologists see this as more reason to strengthen support and welcome measures for foreigners.

The LDP's approach does not foster a real immigration policy, and the public seems to mirror this ambivalence. According to a 2022 government survey, 40% of Japanese approve of increased immigration, but there's strong opposition, too, especially from seniors fearing a threat to the country's "homogeneity". This is Japan's challenge for the future: ending the myth of "ethnic purity."

Useful links:

Japanese Ministry of Foreign Affairs: Japan Specified Skilled Worker

Japanese Ministry of Foreign Affairs: Visas

Japanese Ministry of Foreign Affairs: Work or Long-Term Stay Visas