“We post jobs, but no one applies.” “We hire people, and they leave right away.” These are serious talent challenges many companies face. Japan’s working-age population is projected to fall short by about 6.44 million people by 2030 (Persol Research and Consulting, “Future Estimates of the Labor Market 2030”), and securing staff from the domestic market alone is becoming harder every year.

As one way to break this impasse, a rapidly growing number of companies are turning to hiring international talent. According to the Ministry of Health, Labour and Welfare’s “Notification Status of Foreign National Employment”, the number of foreign workers in Japan reached about 2.3 million as of October 2024, a record high.

Hiring international talent, however, requires specialized knowledge, including confirmation of status of residence and legal procedures. Many hiring managers feel uneasy, wondering whether the system is too complex or whether Japanese-language communication will be adequate.

This article comprehensively covers the statuses of residence to know when hiring international talent, the hiring process, benefits and points of caution, and tips for improving retention. We deliver practical information useful both for companies hiring international talent for the first time and for those already moving forward with plans.

What Is International Talent? Understanding Employment in Japan with the Latest Data

International talent refers to people who do not hold Japanese nationality and work in Japan. The term is nearly synonymous with “foreign worker,” but in recent years “international talent” has come into wider use to emphasize respect for individuals’ expertise and contributions as human resources.

About 2.3 Million International Talent Working in Japan (Record High)

According to the Ministry of Health, Labour and Welfare’s “Notification Status of Foreign National Employment,” the number of foreign workers as of the end of October 2024 was about 2.3 million, up 12.4% year on year. That is an increase of roughly 60% compared with five years earlier, and the pace of growth is accelerating.

The breakdown by nationality is as follows.

  • Vietnam: about 570,000 (25%)
  • China: about 410,000 (18%)
  • Philippines: about 250,000 (11%)
  • Nepal: about 160,000 (7%)
  • Indonesia: about 160,000 (7%)

Vietnam accounts for the largest share, while growth from Nepal and Indonesia has been especially notable.

Acceptance of International Talent by Industry

Industries that accept large numbers of international talent are as follows.

  • Manufacturing: 27%
  • Services: 17%
  • Wholesale and retail: 13%
  • Accommodation and food services: 12%
  • Construction: 8%
  • Nursing care–related: 6%

Labor shortages are especially severe in nursing care and construction, where hiring under the Specified Skilled Worker system is growing rapidly. We also cover the current situation in more detail in Current Status of Accepting Foreign Workers.

Four Benefits of Hiring International Talent

Here is an example from nursing care facility “B Home” in Tokyo (60 residents). Chronic understaffing left the facility unable to secure night-shift staff, and it had suspended acceptance of new residents for six months. After hiring three Vietnamese staff members under the Specified Skilled Worker system in 2023, shifts stabilized, and within four months the facility was able to resume accepting new residents.

In this way, hiring international talent can help solve concrete management challenges. We outline four main benefits below.

1. Easing Chronic Labor Shortages

In Japan, where the birthrate is falling and the population is aging, domestic hiring is especially difficult in on-site industries such as nursing care, construction, and food service. International talent often show strong motivation to work and tend to stay longer term, which supports stable staffing.

2. Expanding Services Through Multilingual and Multicultural Capability

As inbound demand recovers, demand is rising for staff who can handle English, Chinese, Vietnamese, and other languages. Having a multinational workforce greatly strengthens the ability to serve foreign customers.

3. Energizing the Organization and Gaining New Perspectives

Adding people with different cultural backgrounds can prompt mindset shifts among existing team members and generate new ideas. Workplace diversity also contributes to stronger organizational capability over the long term.

4. A Foothold for Overseas Expansion and Globalization

For companies looking ahead to future overseas expansion, employees who understand local languages and cultures are a major strength. Opportunities also expand across sales, interpreting, and support for local subsidiaries.

If you want to understand not only the benefits but also the points of caution, see also Advantages and Disadvantages of Accepting Foreign Workers.

For those considering hiring international talent

YourBright provides talent introduction matched to industry and conditions with no initial fee. Please review the details of our services via document download.

Four Key Statuses of Residence to Know When Hiring International Talent

To employ a foreign national, you must hire someone whose status of residence matches the work involved. There are 29 statuses of residence in total, but the following four are most relevant to corporate hiring.

1. Engineer/Specialist in Humanities/International Services (commonly “Gijinkoku”)

This status of residence is used for specialized and technical roles such as engineers, interpreters, marketers, and designers. As a rule, it requires a university degree or higher, or at least 10 years of practical experience, and covers a wide range of white-collar positions.

2. Specified Skilled Worker

This status of residence allows acceptance in 16 industries facing severe labor shortages. Specified Skilled Worker (i) permits a total stay of up to five years, while Specified Skilled Worker (ii) has no upper limit on renewals. Requirements include Japanese-Language Proficiency Test (JLPT) N4 or higher and passing the skills exam for the relevant industry.

Eligible industries and requirements for Specified Skilled Worker are explained in detail in A List of the 14 Industries and Occupations under Specified Skilled Worker.

3. Technical Intern Training (scheduled to transition to the Employment for Skill Development Program from 2027)

This program aims to transfer skills to developing countries and allows a stay of up to five years. It is scheduled to transition to the “Employment for Skill Development Program” from 2027, with a more flexible design premised on transition to Specified Skilled Worker.

4. Highly Skilled Professional (highly skilled talent)

This status of residence is for researchers, executives, and people with advanced specialized knowledge, and is evaluated under a points-based system. A defining feature is generous preferential treatment, including a shorter path to permanent residence.

For a full overview of all 29 statuses of residence, see What Is a Status of Residence? A List of Permitted Activities and Periods of Stay (for official materials, refer to the Immigration Services Agency of Japan “List of Statuses of Residence”).

Six Concrete Steps to Hire International Talent

This is the case of construction company “C Construction” in Kanagawa Prefecture (45 employees), which hired international talent for the first time under the Specified Skilled Worker system. From starting recruitment to the hire’s start date took about four months. Management initially worried that procedures would be cumbersome, but by following the steps with support from a Registered Support Organization, three Specified Skilled Worker employees are now active on site.

The hiring process consists of the following six steps.

Step 1: Develop a Hiring Plan

Confirm the status of residence that matches the job duties and organize the required Japanese-language level and skills criteria. Also decide at this stage how many people you can accept, employment conditions, and work arrangements.

Step 2: Recruit and Select Candidates

Source candidates through Hello Work, job sites, staffing firms, and similar channels. In addition to Japanese-language interviews, confirming intent in the candidate’s native language is important for preventing early turnover.

Step 3: Extend an Offer and Conclude an Employment Contract

It is recommended that the notice of working conditions be written in the individual’s native language or in plain Japanese. The law requires wages to be equal to or higher than those of Japanese employees.

Step 4: Apply for or Change Status of Residence

When bringing someone from overseas, apply for a Certificate of Eligibility; when hiring someone already in Japan, file an Application for Change of Status of Residence. Processing usually takes one to three months.

Step 5: Prepare for Onboarding and Build an Acceptance Framework

Secure housing, provide a life orientation, and support various administrative procedures. For Specified Skilled Worker, formulating and implementing a “support plan” is mandatory, and this may be outsourced to a Registered Support Organization.

Step 6: Follow Up After Joining

Ongoing support—regular one-on-ones, on-the-job guidance, and life counseling—determines retention.

For a more detailed look at the overall hiring process, see also Explaining the Process of Hiring Foreign Workers.

Four Common Concerns When Hiring International Talent—and How to Address Them

Below we summarize concerns often raised before and after hiring, along with how to address them.

Concern 1: Will Japanese-Language Communication Work?

At Japanese-Language Proficiency Test (JLPT) N4, basic everyday conversation is possible; at N3 or higher, work-related exchanges are feasible. Using a staffing firm or Registered Support Organization with native-language support staff also provides peace of mind for post-hire follow-up.

Concern 2: Procedures Are Too Complex for In-House Handling

By engaging a Registered Support Organization, you can outsource everything from preparing application documents to various notifications. There is no need to create a dedicated in-house specialist role.

Concern 3: Will They Leave Early?

The key to higher retention is intensive support during the first three months after joining. Resolving day-to-day difficulties early and building systems so people are not isolated at work are essential.

Concern 4: Trouble Arising from Cultural Differences

Showing consideration for culturally important occasions—such as Tet (Lunar New Year) for Vietnamese employees or Dashain for Nepalese employees—builds trust. Rather than unilaterally imposing Japanese ways, a posture of mutual understanding supports longer tenure.

To resolve your concerns, start with a free consultation

As a Registered Support Organization, YourBright provides one-stop support from legal procedures through retention. Please feel free to contact us at 03-6908-6143 or via our inquiry form.

Three Tips for Improving Retention of International Talent

At food manufacturing plant “Company D” in Osaka Prefecture, 4 of 10 Vietnamese technical intern trainees returned home early within the first three years. An investigation found the main reasons were “having no one to talk to” and “poor living conditions.”

After these improvements, the company now assigns dedicated supporters who speak workers’ native languages and has upgraded employee housing quality. Retention over the past five years has reached 95%. Drawing on that company’s experience, here are three points for raising retention.

1. Strengthen post-hire orientation

Cover essential information for the first two weeks in one place—rules for daily life in Japan, workplace manners, emergency contacts, and more. Key points are communicating both in writing and orally, and preparing materials in workers’ native languages.

2. Detect issues early through regular one-on-ones

Schedule meetings at least once a month and listen to concerns about work and daily life. Creating a setting where people can speak in their native language makes it easier to draw out honest feedback.

3. Make career paths clear

Showing how people can grow in Japan boosts motivation for long-term employment. Present concrete pathways such as support for obtaining qualifications, help transitioning to Specified Skilled Worker (ii), and promotion into leadership roles.

Conclusion: Planning and ongoing support are the keys to successful international talent hiring

Here is a recap of the essentials for successful international talent hiring.

  • Selecting talent that matches the status of residence is the starting point. Master the four main categories: Engineer/Specialist in Humanities/International Services, Specified Skilled Worker, Technical Intern Training, and Highly Skilled Professional
  • Run hiring in six steps. Follow through end to end, from planning through retention support
  • Concerns about Japanese language, procedures, and retention can be resolved by using a Registered Support Organization
  • Support in the first three months after joining has a major impact on retention rates
  • Cultural consideration and clear career paths lead to longer tenure

Labor shortages will not wait. If you start preparing today, you can welcome international talent who will be contributing on your front lines within six months.

YourBright introduces talent matched to your industry and requirements from a database of more than 170,000 international workers. Zero upfront fees and a fully success-based fee model mean you can start hiring with limited risk. Leave retention improvement to us as well, with post-hire support from staff who speak workers’ native languages.

Start with a free consultation—feel free to contact us.