The number of foreign workers in Japan has reached an all-time high, highlighting the country’s increasing dependence on overseas labour to combat an ongoing workforce shortage.
As of October 2024, Japan had approximately 2.3 million foreign workers, reflecting a 12.4% rise compared to the previous year, according to data released by the Labour Ministry on Friday.
The number of businesses employing at least one foreign worker also saw a significant jump, reaching around 342,000—a 7.3% increase from the previous year.
This steady upward trend underscores Japan’s reliance on foreign labour to fill workforce gaps—a challenge the country has faced since its working-age population peaked in 1995.
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For nearly four years, Japan’s unemployment rate has remained below 3%, one of the lowest among developed nations.
Projections from the Japan International Cooperation Agency suggest that by 2040, the country will require approximately 6.88 million foreign workers to meet its economic goals.
Shungo Akimoto, an economist at Mizuho Securities, noted that the data reflects Japan’s need to welcome foreign workers to offset labour shortages.
Small and medium-sized enterprises (SMEs) have been particularly affected, with a survey by the Tokyo Chamber of Commerce and Industry revealing that over 60% of SMEs are struggling with workforce deficits. The report further indicated that nearly 80% of the 342,000 businesses hiring foreign workers are smaller firms with fewer than 100 employees.
