Japan sees surge in foreign labour across key industries

Japan has set a new national record for foreign workers, with the labour force from abroad surpassing 2.5 million for the first time, says data released this week by the Ministry of Health, Labour and Welfare.

The country’s foreign workforce grew 11.7% in 2025, slightly lower than the previous year’s increase of 12.4%, but still maintaining a growth rate above 10% for the third consecutive year, Japanese media reports.

Foreign employees now make up roughly 4% of Japan’s total workforce, in a country with one of the world's most ethnically and culturally homogenous populations of around 123 million, topped only by a few nations like North Korea.

By nationality, Vietnamese workers lead with approximately 600,000, accounting for 23.6% of all foreign workers. They are followed by Chinese nationals at 430,000 and Filipinos at 260,000. Myanmar saw the largest growth rate, with its workforce rising 42.5%, while Indonesia and Sri Lanka recorded increases of 34.6% and 28.9%, respectively.

“Even as Japan competes with other destinations such as South Korea and Taiwan for talent, some workers choose Japan for factors including its general safety and cultural draws,” the Ministry said.

The rise in foreign employment spans multiple sectors. The medical and welfare industry, including nursing care, saw a 25.6% increase, hospitality and dining grew 17.1%, and construction rose 16.1%. Manufacturing remains the largest employer of foreign workers, with roughly 630,000 individuals.

To address ongoing labour shortages, Japan plans to introduce the Employment for Skill Development Program in April 2027. This program will replace the current Technical Intern Training Program and aims to accept up to 426,200 workers over two years.

The initiative will complement the existing Specified Skilled Worker program, which brings in higher-skilled foreign employees. Together, the two programs are projected to allow up to 1.23 million foreign workers into Japan, targeting 17 industries facing significant labour gaps, including hospitality, restaurants, and nursing.

By Nazrin Sadigova