Introduction
Japan is grappling with a demographic crisis characterized by an aging population and a declining birth rate. According to the United Nations Population Division, Japan leads countries with a population of one million or more in the highest proportion of its population aged 65 and above, at 30.2%. This demographic shift threatens the country’s ability to maintain social and economic stability, prompting the government to implement various initiatives, including the Specified Skilled Worker (SSW) program, to attract foreign talent.
Japan’s Demographic Challenge
Japan’s population challenges are profound. With over 10% of its population aged 80 and above as of 2023 and a declining birth rate since 2008, Prime Minister Fumio Kishida has voiced concerns about sustaining social functions. In response, Japan amended the Immigration Control and Refugee Recognition Act (Immigration Act) in 2019 to accept low-skilled foreign workers as SSWs in industries facing critical labor shortages, such as agriculture, building cleaning management, and food and beverage manufacturing.
Initial Challenges and Slow Uptake
Despite setting an initial target of 30,000 workers, the program saw only 1,621 successful applications in its first year. As of January 2024, the total number of SSW applicants remains well below the target of 345,000 by year-end, highlighting ongoing difficulties in attracting foreign talent.
Collaboration with Indonesia
To address the low demand, Japan has turned to international collaboration. A notable initiative was the Human Resources Forum held in Jakarta on November 28, 2023, in partnership with the Indonesian Ministry of Manpower. This forum resulted in a Memorandum of Cooperation, outlining plans for Indonesia to send 100,000 employees through the SSW Program over the next five years. These initiatives include providing Japanese language education and skills training to Indonesians to meet SSW visa eligibility. This collaboration is mutually beneficial. Japan, with 8.75 million workers over the retirement age of 65, gains much-needed labor, while Indonesia addresses its high youth unemployment rate of 13%. The decision to phase out the Technical Intern Trainee Program (TITP), known for exploiting foreign labor, further positions Japan as a more attractive destination for foreign workers.
Japan’s Specified Skilled Worker Visa: Key Details
The SSW program, initially championed by Yoshihide Suga in 2018, targets 14 industries with significant manpower shortages:
The Role of Registered Support Organizations
To ensure compliance, companies can outsource the management of these obligations to Registered Support Organizations (RSOs). RSOs handle routine notifications, implementation of the Support Plan, and monitoring of the SSW holders’ status, including remuneration, resignations, or absences. The support persists until the SSW holder leaves the company, at which point the RSO must submit a final report to immigration authorities.
Differences Between SSW and TITP
A key distinction between SSW and TITP is the mandatory Japanese language support required for SSW holders. This emphasis on language support underscores the program’s commitment to better integrating foreign workers and protecting their rights, which contrasts with the TITP’s history of labor exploitation.
Continued Interest and Future Prospects
Japan’s SSW program continues to draw interest from both domestic industries and international partners, particularly in countries like Vietnam, which contributes a significant portion of Japan’s SSW population. This program holds promise for enhancing economic cooperation and addressing labor shortages in critical industries.
Pros:
Japan is grappling with a demographic crisis characterized by an aging population and a declining birth rate. According to the United Nations Population Division, Japan leads countries with a population of one million or more in the highest proportion of its population aged 65 and above, at 30.2%. This demographic shift threatens the country’s ability to maintain social and economic stability, prompting the government to implement various initiatives, including the Specified Skilled Worker (SSW) program, to attract foreign talent.
Japan’s Demographic Challenge
Japan’s population challenges are profound. With over 10% of its population aged 80 and above as of 2023 and a declining birth rate since 2008, Prime Minister Fumio Kishida has voiced concerns about sustaining social functions. In response, Japan amended the Immigration Control and Refugee Recognition Act (Immigration Act) in 2019 to accept low-skilled foreign workers as SSWs in industries facing critical labor shortages, such as agriculture, building cleaning management, and food and beverage manufacturing.
Initial Challenges and Slow Uptake
Despite setting an initial target of 30,000 workers, the program saw only 1,621 successful applications in its first year. As of January 2024, the total number of SSW applicants remains well below the target of 345,000 by year-end, highlighting ongoing difficulties in attracting foreign talent.
Collaboration with Indonesia
To address the low demand, Japan has turned to international collaboration. A notable initiative was the Human Resources Forum held in Jakarta on November 28, 2023, in partnership with the Indonesian Ministry of Manpower. This forum resulted in a Memorandum of Cooperation, outlining plans for Indonesia to send 100,000 employees through the SSW Program over the next five years. These initiatives include providing Japanese language education and skills training to Indonesians to meet SSW visa eligibility. This collaboration is mutually beneficial. Japan, with 8.75 million workers over the retirement age of 65, gains much-needed labor, while Indonesia addresses its high youth unemployment rate of 13%. The decision to phase out the Technical Intern Trainee Program (TITP), known for exploiting foreign labor, further positions Japan as a more attractive destination for foreign workers.
Japan’s Specified Skilled Worker Visa: Key Details
The SSW program, initially championed by Yoshihide Suga in 2018, targets 14 industries with significant manpower shortages:
- Nursing Care
- Building Cleaning Management
- Machine Parts, Tooling, Industrial Machinery, Electric, Electronics, and Information Industries
- Construction Industry
- Shipbuilding and Ship Machinery Industries
- Automobile Repair and Maintenance
- Aviation Industry
- Accommodation Industry
- Agriculture Industry
- Fishery and Aquaculture Industries
- Food and Beverage Manufacturing Industries
- Food Service Industry
The Role of Registered Support Organizations
To ensure compliance, companies can outsource the management of these obligations to Registered Support Organizations (RSOs). RSOs handle routine notifications, implementation of the Support Plan, and monitoring of the SSW holders’ status, including remuneration, resignations, or absences. The support persists until the SSW holder leaves the company, at which point the RSO must submit a final report to immigration authorities.
Differences Between SSW and TITP
A key distinction between SSW and TITP is the mandatory Japanese language support required for SSW holders. This emphasis on language support underscores the program’s commitment to better integrating foreign workers and protecting their rights, which contrasts with the TITP’s history of labor exploitation.
Continued Interest and Future Prospects
Japan’s SSW program continues to draw interest from both domestic industries and international partners, particularly in countries like Vietnam, which contributes a significant portion of Japan’s SSW population. This program holds promise for enhancing economic cooperation and addressing labor shortages in critical industries.
Pros:
- Addresses critical labor shortages in key industries.
- Provides opportunities for foreign workers to contribute to Japan’s economy.
- Enhances economic cooperation with countries like Indonesia and Vietnam.
- Includes mandatory language and cultural support, improving worker integration.
- Slow initial uptake and ongoing challenges in meeting target numbers.
- Rigorous application and support process can be burdensome for employers.
- Potential for exploitation if oversight mechanisms are not strictly enforced.
- Dependence on foreign labor may not fully address underlying demographic issues.
