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Japan labor shortage and stricter residency policy shifts

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2026-09-09 23:11 UTC → 2026-09-10 04:36 UTC · added ~~removed~~

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.

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