Japan to cap foreign worker numbers from 2027

Japan plans a major change in its foreign labour system as it tries to balance worker shortages with public concern over immigration. The government will cap the number of workers under a new programme at about 426,000 in its first two years from fiscal 2027, according to Kyodo News. The decision comes as Japan reviews its overall foreign worker policy, including steps to curb visa overstays. The review follows directions from Prime Minister Sanae Takaichi and reflects public concern about the rising number of foreign nationals in the country. At the same time, Japan faces a long-term labour shortage due to its ageing population. To respond, the government plans to scrap the Technical Intern Training Program and replace it with a new framework called the Employment for Skill Development programme. The existing system has faced criticism over low wages and labour practices. Key changes to training and skilled worker programmesUnder the new programme, foreign workers will be encouraged to shift to the Specified Skilled Worker status after three years of work. This change will allow them to stay in Japan for longer periods. A draft plan presented to experts shows Japan aims to accept about 805,000 people under the specified skilled worker programme by March 2029. This figure is slightly lower than the 820,000 target set in March 2024. The government said the revised number is achievable by improving productivity, including through wider use of digital technology. The draft also states that around 1.23 million foreign workers would be accepted under the existing and new systems combined. The Cabinet is expected to approve the plan in January after further discussions. The new training programme will apply to 17 sectors, including agriculture and construction. The current specified skilled worker system covers 19 sectors. Japan offers two types of visas under the specified skilled worker category. One allows a stay of up to five years. The other can be renewed without limit and can lead to permanent residency. The first is for workers with “considerable knowledge or experience,” while the second is for those with more advanced and “proficient skills,” the government said. Only foreign nationals holding the Specified Skilled Worker I status will be covered by the proposed cap. (With ANI inputs)