Japan's Foreign Workforce Reaches Record High Amid Chronic Labor Shortage
Japan's reliance on foreign workers continues to grow, with the number reaching a new high in October 2024. The country now employs 2.3 million foreign workers, representing a 12.4% increase from the previous year. This surge reflects Japan's ongoing labor shortage, which has persisted since the working-age population peaked in 1995.
The number of businesses employing foreign workers has also hit a record high of approximately 342,000, with nearly 80% of these businesses being small firms with fewer than 100 employees. The construction and medical industries have seen particularly sharp increases in foreign workers, driven by severe labor shortages.
While Japan's demand for foreign workers remains strong, it faces competition from neighboring countries like Singapore and South Korea, who are also experiencing labor shortages. Additionally, upcoming tighter regulations in Japan may impact companies' ability to attract and retain foreign workers.
However, the revised regulatory system may also have positive implications by encouraging higher wages and improving the working environment for foreign workers. This could potentially lead to an even greater influx of foreign workers, facilitating Japan's economic growth.