Japan needs foreign workers. The really need and urgently. But its hiring system for foreigners experiences a curious paradox: the country needs these foreigners, but charges them a fortune and places innumerable obstacles for them to go to work. Well, to be exact, it’s not actually the government that charges them to work, but a network of intermediary agencies in recruitment who take a good commission before the worker even sets foot on Japanese soil.
According to the second edition of the survey on foreign workers in Japan85% of foreign workers who arrive in Japan do so through some type of intermediary. The majority pays a bill for this service that can exceed 6,000 euros.
Import workers due to low birth rate. According to the Japanese Ministry of Health, Labor and Welfarethe number of foreign workers in the country reached 2.57 million at the end of 2025, 11.7% more than the previous year, and the thirteenth all-time record consecutive. That is, in 2025, that figure was almost three times higher than that recorded a decade earlier.
The manufacturing industry accounts for 24.7% of the total foreign employees, followed by the services sector with 15.2% and wholesale and retail trade with 13.3%. By city, Tokyo, Aichi and Osaka host more than 43% of all these workers. These data show that there are entire sectors that cannot fill the majority of their vacancies with local workers and need this foreign workforce to fill them.
They pay to go to work in Japan. According to the data collected According to the Japanese Ministry of Labor, the vast majority of these workers arrive through a recruitment agency at origin that charges them a fee of between 200,000 and 400,000 yen (the equivalent of between 1,200 and 2,400 euros), while 13.2% of foreigners paid up to 6,000 euros just to have the opportunity to go to work in Japan.
Of the 10.9% of workers who reported having had labor disputes in Japan, 18.6% indicated that the cost of agencies was excessive, and 14.9% admitted not having known who to turn to when difficulties arose. Meanwhile, 69% of companies cited labor shortages as the main reason for hiring foreign staff, up from 64.8% a year earlier.
The end of the system that allowed it. Much of this friction has its origin in how the Japanese immigration system itself was designed. For more than thirty years, the Technical Internship Program (TITP), launched in 1993 with the stated objective of training workers from developing countries. In practicethis program functioned as a way to obtain cheap labor that, once in the country, had very little capacity for maneuver, denouncing marathon days, salary failures and the impossibility of freely changing sectors or jobs.
In June 2024, the Japanese Parliament approved its replacement by the system Ikusei Shuro Seidowith entry into force scheduled for June 2027. For the first time, the Japanese government officially recognizes that the goal of the new program It is to train and retain foreign labor to cover the talent shortage, something that the previous regulations did not allow. Unlike the TITP, the new model does allow changing companies within the same sector under certain conditions, and sets a limit on commissions from recruitment agencies equivalent to two months of the worker’s salary.
More visas, more sectors, more talent. The Japanese government has opened new entry ways to foreign labor. In March 2024, the Specific Skilled Worker (SSW) visa program incorporated new sectors in which foreigners can work, raising to 17 the total number of sectors covered.
Those who arrive with a university degree can benefit from the J-Find visaaimed at graduates from the top 100 universities in the world. This visa allows you to reside up to two years in Japan to look for work or prepare a business project without having to have an employer to guarantee your arrival. Unlike the SSW or the TITP, the J-Find is a commitment that goes beyond filling vacant positions, and what it seeks is to compete for highly qualified talent at a global level and encourage the creation of startups and innovation projects in Japan.
Companies also have their share of the problem. In addition to demographic pressurethe companies themselves have spent years unable to fill vacancies with local workers. According to the MHLW survey30% of the establishments declared having difficulties and “linguistic and cultural barriers” with their employees, and “complexity of the procedures to manage their residency status.” That is to say, not only is it a complex bureaucracy for workers, but Japanese companies are also having problems with this hiring system.
The reforms underway aim to correct the most problematic points of the system, from agency abuses to the rigidity that tied workers to a single employer. The reforms will not be completed until 2027, so until that time comes, the paradox that Japan is experiencing still the same: a country that urgently needs foreign workers, in which those same workers have to pay a high sum to be able to work.
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Image | Unsplash (Il Vagabiondo)
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