Japan’s ongoing demographic decline continues to reshape its labor market, with the number of foreign workers reaching a record 2.57 million. Labor-intensive industries such as manufacturing and services remain the primary sectors employing overseas workers.
TOKYO, JAPAN (MERXWIRE) – As Japan’s labor shortage continues to worsen, the number of foreign nationals employed in the country has steadily increased. According to Japan’s Ministry of Health, Labour and Welfare, the number of foreign workers reached 2,571,037 as of last October, up 268,450 from the previous year, marking an 11.7% year-on-year increase. This represents the 13th consecutive year of record growth and the highest figure since the mandatory reporting system was introduced in 2007. Foreign workers now account for 4.1% of Japan’s total workforce.
Although the annual growth rate eased slightly from 12.4% the previous year — a decline of 0.7 percentage points — the overall scale continues to expand, underscoring the increasingly vital role foreign workers play in supporting Japan’s labor market.
By nationality, Vietnamese workers make up the largest group at approximately 600,000, accounting for 23.6% of the total. Chinese nationals follow at around 430,000 (16.8%). They are followed by workers from the Philippines (about 260,000), Nepal (230,000), and Indonesia (220,000).
On the employer side, the number of establishments hiring foreign workers rose to 371,215, an increase of 29,128 from the previous year, representing an 8.5% annual rise. This also marks a record high since the reporting system was implemented, with growth accelerating from 7.3% the year before.
By industry, the most significant increases in foreign employment were seen in medical institutions, elderly care facilities, hotels, restaurants, and construction — sectors facing severe labor shortages. Overall, manufacturing remains the largest employer of foreign workers, followed by the service sector and wholesale and retail industries.
As labor shortages intensify, the retail sector is also increasingly relying on foreign employees. According to a survey released by the National Supermarket Association of Japan, approximately 25.5% of supermarkets currently employ foreign staff. Looking ahead, 39.1% of supermarket operators said they plan to expand recruitment of foreign workers, 53.1% intend to maintain current levels, and only 7.7% expect to reduce hiring.
Experts note that as Japan’s aging population and declining birthrate continue, the country’s dependence on foreign labor is likely to deepen. Improving working conditions and strengthening support systems will become key policy challenges for the future.