Japan's initiative to attract skilled foreign workers has gained significant momentum. A remarkable 251,747 international workers had registered under the skilled worker visa program, reflecting a substantial 20.8% increase from the previous six months. This strategic move aims to alleviate pressing labor shortages across various industries and ensure the continued growth and prosperity of the Japanese economy.

Why is Japan Facing a Labor Shortage? 

Although there are a number of reasons for Japan's labour shortage, the country has made strides in addressing it, and by 2040, 5.91 million foreign workers are anticipated to be employed there.

• Aging population: Japan has the oldest population globally, with nearly 30% of its people aged 65 or older. That means a lot of workers are retiring, but there just aren’t enough young folks coming in to replace them. This creates a significant gap in the workforce that the country is struggling to fill.
• Lower birth rate: Low birth rate is another reason for labour shortage in Japan. With fewer births, there just aren't enough young people joining the workforce, which is causing shortages in a lot of different vital sectors of the country. 
• Cultural factors: Because employees are expected to remain loyal to a single employer and work hours are too lengthy, the work culture in Japan is a little inflexible and hectic. Many young Japanese individuals choose to pursue higher education, and if they do have jobs, they favour cities over rural ones.
• High demand is a specific sector:There is a shortage of employees in one industry due to high demand in another. For example, to care for the ageing population, Japan’s healthcare system requires additional workers as compared to any other sector. 

How will Japan Fill the Labor Shortage Gap? 

Japan, fearing a severe labor shortage of up to a million workers by 2029, has taken quick steps to stop the issue and bring in more foreign workers.

• Introduction of SSW visa: Back in 2019, the authorities introduced a new type of visa called 'Specified Skilled Worker' to attract international laborers. Because of this, foreign workers are coming to Japan in search of employment, and by the year 2040, there will likely be 5.91 million foreign workers in Japan.

Over the past decade, Japan has also seen a steady rise in the number of certified workers, reaching 1.94 million by 2023.

• Making the job transfer process easier: Japanese authorities have taken action to make it easier for foreign employees to switch jobs without encountering any needless difficulties. This decision was made in response to an increase in workers quitting their jobs suddenly—9,753 incidents were reported last year.

• Work Schedule Flexibility: Japan is planning to introduce a more flexible work culture by encouraging shorter ( four days) workweeks and customizable schedules. For these changes to truly take hold, the government needs to implement strong policies that ensure employers follow the rules.

Japan is addressing its persistent labor shortage, but significant progress requires active support from businesses and the public. This effort will face hurdles without collective cooperation.