Japan is preparing for one of the most significant changes to its foreign labour policy in decades as the country struggles with a rapidly ageing population and a shrinking workforce. According to government plans currently under review, Japan is expected to accept more than 1.2 million foreign workers by March 2029 through a restructured visa and skill development framework. The move reflects a growing urgency to sustain key sectors of the economy that are facing chronic manpower shortages.
The proposal includes accepting approximately 805,000 workers under the Specified Skilled Worker system, slightly lower than the earlier target of 820,000 set in 2024. Officials believe the revised target is more realistic, particularly if productivity increases through automation and digital tools. Alongside this, nearly 426,000 foreign nationals are expected to enter Japan under the newly introduced Employment for Skill Development program during its initial phase starting in fiscal year 2027. When combined, these programs would bring the total intake of foreign workers to around 1.23 million over the same period.
Japan’s population structure has reached a critical point, with a growing elderly population and fewer young people entering the workforce. This demographic imbalance has led to severe labour shortages across multiple industries, including agriculture, construction, caregiving, manufacturing, and food processing. Businesses in these sectors have increasingly relied on foreign labour to maintain operations, prompting the government to rethink its long-standing, restrictive immigration stance.
As part of the overhaul, Japan plans to abolish the controversial Technical Intern Training Program, which has faced sustained criticism for enabling low-wage labour and exposing foreign workers to poor working conditions. The new Employment for Skill Development program aims to shift the focus toward genuine skill acquisition, fair employment practices, and long-term workforce integration. Workers under the new system will be encouraged to upgrade to Specified Skilled Worker status after three years, allowing them to stay longer and build stable careers in Japan.
Under the revised framework, the number of industries covered by the training and skilled worker programs will be streamlined from 19 to 17, concentrating on sectors with the most acute labour shortages. The government has also indicated that it will strengthen oversight to prevent visa overstays while ensuring that legitimate workers are protected and supported. These measures are being implemented under the direction of Prime Minister Sanae Takaichi, who has emphasized balancing economic necessity with public concerns over immigration.
Reports from Kyodo News suggest that the Cabinet is expected to approve the final version of the plan in January following internal discussions. If implemented as planned, the reforms could mark a turning point in Japan’s approach to foreign labour, opening new opportunities for skilled workers worldwide while helping the country address one of its most pressing economic challenges.
