The Immigration Services Agency of Japan publishes quarterly figures on its website for the number of Specified Skilled Worker foreign nationals residing in Japan.

Due to the impact of COVID-19, the rate of increase has fallen well short of initial projections, but the number has been rising gradually since the system began.

This article introduces the operational status of the Specified Skilled Worker system based on the published statistical data.

Status of Residence of Specified Skilled Worker (i) Foreign Nationals as of the End of June 2021

What the Data by Nationality Reveals

As of the end of June 2021, 29,144 Specified Skilled Worker foreign nationals were residing in Japan.

Broken down by nationality in descending order: Vietnam (18,191), the Philippines (2,621), China (2,499), Indonesia (2,338), Myanmar (1,265), and other countries.

As this statistical data shows, Specified Skilled Worker (i) foreign nationals of Vietnamese nationality are overwhelmingly the largest group. As a share of the total, more than 60 percent are Vietnamese nationals.

Currently, Vietnam also ranks first by nationality among technical intern trainees in Japan, and the same is true under the Specified Skilled Worker system.

One reason is that most foreign nationals currently residing in Japan as Specified Skilled Worker (i) have completed Technical Intern Training, obtained eligibility to become Specified Skilled Worker (i), and then applied for the Specified Skilled Worker (i) status of residence.

Those who have completed Technical Intern Training (ii) or higher are exempt from the skills and Japanese language tests that would otherwise be required to become Specified Skilled Worker foreign nationals. In addition, because entry into Japan is currently not possible, foreign nationals who have passed those exams overseas are waiting in their home countries until entry to Japan resumes.

Foreign nationals of Philippine nationality rank second in number. There are embassy procedures on the Philippine side; even if those procedures have not been properly completed, applicants can still pass screening at the Immigration Services Agency of Japan and obtain Specified Skilled Worker (i) status of residence. However, problems may arise—such as being unable to return to Japan after going back to the Philippines—so the procedures must always be completed.

In addition, under Philippine law, the Specified Skilled Worker system must be operated through a sending organization, and monthly management fees are incurred, making those costs a significant burden for accepting organizations.

What the Data by Industry Classification Reveals

Looking at the breakdown by industry classification, in descending order: food and beverage manufacturing (10,450), the three manufacturing fields (5,729), agriculture (4,008), construction (2,781), nursing care (2,703), and others.

By industry classification, acceptance in food and beverage manufacturing is overwhelmingly the largest. A key factor is that while many fields have been affected by the economic downturn caused by COVID-19, food and beverage manufacturing is generally less susceptible to recession and faces a serious labor shortage, which accounts for these numbers.

In addition, some companies in food and beverage manufacturing—for example, confectionery manufacturers—do not qualify to accept technical intern trainees. For them, the Specified Skilled Worker system finally makes it possible to accept foreign nationals, and some are doing so.

Furthermore, in food and beverage manufacturing, joining the council that accepting organizations of Specified Skilled Worker foreign nationals are required to join is very straightforward, which has also contributed to the increase in acceptance in this field.

Regarding the three manufacturing fields, examples include accepting organizations whose production volumes have not fallen even under the impact of COVID-19 and that had originally planned to accept technical intern trainees, but with no prospect of the expected trainees entering Japan, decided to continue employing foreign nationals already accepted as technical intern trainees by transitioning them to Specified Skilled Worker (i); and cases of hiring foreign nationals who completed Technical Intern Training at another company that was not considering Specified Skilled Worker acceptance, and who were looking for an employer where they could continue working as Specified Skilled Worker (i).

In agriculture, chronic labor shortages continue due to the declining birthrate and aging population, and with no prospect of new technical intern trainees entering Japan, many accepting organizations have begun employing Specified Skilled Worker foreign nationals.

In addition, agriculture allows employment of Specified Skilled Worker foreign nationals under a dispatch arrangement. Accepting organizations that cultivate only in winter or only in summer, for example, may prefer employment for only half the year rather than year-round. Although costs are higher than direct employment, some such organizations accept Specified Skilled Worker foreign nationals through companies engaged in the dispatch business.

Construction involves physical labor, and when worksites change frequently, travel time also increases, making the work demanding. Even so, Japanese workers alone are not enough to meet labor needs, and it is one of the fields with substantial acceptance of Specified Skilled Worker (i) foreign nationals.

One major reason acceptance in construction is lower than expected is the cost and administrative burden of acceptance.

In construction, there are many implementation and application procedures that burden accepting organizations—such as introducing the Construction Career Up System and online applications for Construction Specified Skilled Worker Acceptance Plans—and each involves costs. For these reasons, many organizations abandon plans to accept Specified Skilled Worker (i) foreign nationals.

Even so, construction allows transition to Specified Skilled Worker (ii). Becoming a Specified Skilled Worker (ii) foreign national brings many advantages, including indefinite renewal of status of residence and permission to bring family members, which shows that the Japanese government is positive about long-term acceptance of foreign nationals in this field.

In nursing care, although the number accepted remains at the current level, it can be said that this is the field where the government is focusing most on employing foreign nationals.

There are currently four statuses of residence under which foreign nationals can be employed in nursing care: “Nursing Care,” “Technical Intern Training,” “Specified Skilled Worker,” and “Designated Activities (EPA).” This alone indicates how urgently the government views acceptance of foreign nationals in nursing care.

In addition, when the Specified Skilled Worker system was established in 2019, the government announced that it would employ 60,000 nursing care workers under the system over the following five years—the highest acceptance target among the 14 Specified Skilled Worker fields. Taking this into account, the number in this field is expected to increase substantially going forward.

Conclusion

This article has introduced what can be understood from data published by the Immigration Services Agency of Japan on Specified Skilled Worker (i) foreign nationals residing in Japan.

Acceptance of Specified Skilled Worker foreign nationals is still being developed as a system. Although transition to Specified Skilled Worker (ii) is permitted in the construction and shipbuilding fields, even the requirements for that transition have not yet been decided.

Moreover, partly due to the impact of COVID-19, acceptance is running well below the initially targeted numbers. After entry into Japan resumes, the government is expected to further promote use of the Specified Skilled Worker system to increase acceptance. Companies that accept technical intern trainees are also encouraged to consider using the Specified Skilled Worker system as one option for future acceptance of foreign nationals.