# Japan labor shortage and stricter residency policy shifts > Live situation record from CLSTR: https://clstr.news/situations/japan-foreign-labor-and-residency-policy-shifts > Updated: 2026-09-09T08:33:00.000Z. Sources: 17. Developments: 7. Japan is navigating a tension between an intensifying domestic labor shortage and the implementation of stricter foreign residency and labor policies. An aging and shrinking population has led to a high reliance on foreign nationals, with 68.2% of companies hiring them to address staffing gaps. In response to demographic pressures, the government is shifting toward a model of “orderly coexistence” and strengthened management. Recent measures include quantitative limits on certain residency statuses, more rigorous oversight of permanent residency regarding tax and social insurance compliance, and increased capital requirements for “Business Manager” visas. In the first half of 2026, 953 foreign nationals holding “Business Manager” visas left Japan without completing re-entry procedures, a nearly fourfold increase from the previous year. This exodus follows regulations that raised minimum business capital requirements from 5 million yen to 30 million yen, alongside new mandates for management experience, Japanese language proficiency, and full-time staffing. Further tightening is scheduled for late 2026. Starting in October, visa fees will increase, with permanent residency applications rising to 200,000 yen. New requirements for permanent residency include earning above the average Japanese household income, establishing a 30-year retirement fund, and demonstrating intermediate Japanese language skills starting next April. Proposed guidelines also include the potential revocation of residency status for non-compliance with immigration laws, tax or social insurance non-payment, or certain criminal offenses. These changes have sparked concern among foreign residents and migrant solidarity groups, who argue that the policies, such as potential revocation for minor infractions, threaten family stability and the livelihoods of foreign entrepreneurs. As the government prepares for the April 2027 launch of the Employment for Skill Development Program—intended to replace the technical intern training program—officials are exploring sector expansions. ## Claims - The government intends to create an orderly society where foreigners and Japanese citizens coexist. (corroborated by 4 sources) - Visa fees for permanent residency will increase to 200,000 yen (approximately $1,257) in October. (corroborated by 4 sources) - Fees for work and student visas will also increase. (corroborated by 4 sources) - Permanent residency applicants must earn above the average income of Japanese households. (single source) - Starting next April, applicants must establish a 30-year retirement fund and demonstrate intermediate Japanese language proficiency. (single source) - Capital requirements for business manager visas have been raised to between 5 million and 30 million yen. (single source) - The foreign population in Japan reached 4.1 million, representing approximately 3.4% of the total population. (single source) ## Timeline ### 2026-09-09: Japan considers adding security and aviation to foreign worker programs Japan is considering adding the security and aviation ground handling sectors to its new foreign worker programs starting in April 2027 to combat labor shortages. 2 sources. https://clstr.news/cluster/japan-considers-adding-security-and-aviation-to-foreign-worker-programs ### 2026-09-09: Japan debates foreign labor management amid shortages and safety concerns Japan is navigating the complexities of foreign labor management, balancing critical industry shortages in care and food service against concerns over public safety and social cohesion. 2 sources. https://clstr.news/cluster/japan-debates-foreign-labor-management-amid-shortages-and-safety-concerns ### 2026-09-09: Japan immigration policy changes spark concern among foreign residents Foreign residents in Japan are protesting new immigration guidelines that tighten permanent residency requirements and expand the grounds for revoking residency status. 2 sources. https://clstr.news/cluster/japan-immigration-policy-changes-spark-concern-among-foreign-residents ### 2026-09-03: Japan tightens immigration and visa policies Japan is tightening immigration rules, including significant visa fee increases in October and new residency requirements regarding income, language proficiency, and retirement savings. 5 sources. https://clstr.news/cluster/japan-tightens-immigration-and-visa-policies ### 2026-09-02: Japan sees surge in foreign business owners leaving due to stricter visa rules Foreign business owners are leaving Japan in record numbers following stricter visa requirements, including higher capital thresholds and increased management experience mandates. 2 sources. https://clstr.news/cluster/japan-sees-surge-in-foreign-business-owners-leaving-due-to-stricter-visa-rules ### 2026-08-31: Japan labor shortage intensifies reliance on foreign workers Japan's labor shortage is driving increased reliance on foreign workers, even as policy shifts aim to tighten residency rules and restrictions on new overseas hires impact sectors like restaurants. 3 sources. https://clstr.news/cluster/japan-labor-shortage-intensifies-reliance-on-foreign-workers ### 2026-08-26: Japan implements stricter foreign residency and labor policies Japan is tightening foreign residency controls and reforming labor systems, shifting toward stricter management of visa applications, tax compliance, and the upcoming 2027 Training and Employment system. 3 sources. https://clstr.news/cluster/japan-implements-stricter-foreign-residency-and-labor-policies --- Cite as: Japan labor shortage and stricter residency policy shifts. CLSTR, https://clstr.news/situations/japan-foreign-labor-and-residency-policy-shifts