Japan Plans to Set 426,000 Cap for New Foreign Worker Program Starting 2027

Japan plans to introduce a numerical cap on foreign workers under a new employment system starting fiscal 2027. The government intends to restrict intake to about 426,000 workers during the first two years of the programme, according to Kyodo News.  

The limit will apply only to workers entering under a newly designed skill-based category. The proposal is part of a wider review of Japan’s foreign labour and residency framework. 

Policy Review Linked to Immigration Oversight 

The review follows directions from Prime Minister Sanae Takaichi and includes measures aimed at reducing visa overstays. The government has cited public concern over the steady rise in the number of foreign residents as a factor behind the reassessment. 

At the same time, authorities continue to acknowledge persistent labour shortages across several sectors. 

Ageing Population Shapes Labour Approach 

Japan’s working-age population has been shrinking for decades due to low birth rates and longer life expectancy. This has increased reliance on overseas labour, particularly in physically demanding and lower-paid industries. 

To adjust its approach, the government plans to phase out the Technical Intern Training Program, which has faced repeated criticism over pay levels and working conditions. 

Shift to Skill Development Framework 

The intern programme will be replaced by a new structure called the Employment for Skill Development programme. Under this system, foreign workers will be encouraged to move to the Specified Skilled Worker (SSW) status after three years of employment. 

This transition is intended to allow longer stays and clearer employment continuity for eligible workers. 

Updated Intake Targets and Sectors 

A draft plan shared with experts shows Japan aims to accept around 805,000 specified skilled workers by March 2029, slightly below the 820,000 target set in March 2024. The government said the revised number reflects expectations of productivity gains, including greater use of digital tools. 

In total, around 1.23 million foreign workers are expected to be accepted under existing and new systems combined. Cabinet approval of the plan is expected in January. 

Visa Types and Coverage 

The new training programme will apply to 17 sectors, including agriculture and construction, compared with 19 sectorsunder the current skilled worker system. Japan offers 2 SSW visa categories: one allowing stays of up to 5 years, and another that can be renewed without limit and may lead to permanent residency. 

Only holders of the first SSW category will be subject to the proposed cap. 

Read More: Trump’s $1 Million Gold Card Visa Goes Live Replacing EB-5 Route! 

Conclusion 

Japan’s planned intake limit forms part of a broader restructuring of its foreign labour system, combining numerical controls with a revised skills-based framework. 

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