Japan Reassesses Its Stance on Foreign Workers Amidst Demographic Shifts

Japan is set to significantly increase fees for residence permits starting next month. The cost for renewing or altering residency status could reach up to ¥75,000 (approximately US$480), depending on the duration of stay. Notably, the fee for permanent residency applications will jump to ¥200,000 from the previous ¥10,000.

In addition to fee hikes, the government is imposing stricter conditions for permanent residency. While applicants must already demonstrate self-sufficiency, new proposed criteria include having an above-average household income, adequate projected pension benefits, proficiency in Japanese, and knowledge of Japanese institutions and daily life regulations. These changes signify more than just administrative adjustments.

Japan’s reliance on foreign labor is growing steadily. Confronted by a declining and aging population and persistent labor shortages, successive administrations have broadened pathways for foreigners to enter and work, yet avoid labeling Japan as an immigrant nation.

In the past year, the foreign workforce reached a new peak of 2.57 million by the end of October. Although comprising roughly 3% of the total labor force, the Bank of Japan projects that foreign workers contributed to over half of the labor force growth between 2023 and 2024.

Official statistics reveal that last year, the manufacturing sector employed 24.7% of foreign workers, followed by services at 15.2%, wholesale and retail at 13.3%, accommodation and food services at 12.4%, and construction at 8%.

The impact of increased fees might disproportionately affect certain groups. Data from Japan’s 2020 census indicates that male foreign workers are more prone to non-regular employment compared to Japanese men. For instance, among male employees (excluding executives), about 15% of Japanese nationals were in non-regular roles, whereas the figures were approximately 53% for Brazilians, 45% for Indonesians, and around 40% for Vietnamese, Nepalese, and Peruvians.

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