How to Hire Foreign Workers: Status of Residence, Procedures, and Costs Explained【2026 Latest】

“Labor shortages are severe, and we are considering hiring foreign nationals, but we do not know where to start.” Voices like this are common across many industries, including nursing care, construction, food service, and manufacturing.

According to the Ministry of Health, Labour and Welfare’s “Notification Status of Employment of Foreign Nationals,” the number of foreign workers in Japan exceeded about 2.3 million as of the end of October 2024, setting a new record high. Hiring foreign nationals is no longer limited to a handful of companies; it is an important option in talent strategy.

This article explains the main types of status of residence available for hiring foreign nationals and how they compare, the concrete flow of hiring procedures, cost benchmarks, and responses to common challenges. It is designed so that even company staff considering international talent for the first time can grasp the overall picture.

Background and latest trends behind interest in hiring foreign nationals

Japan’s working-age population (ages 15–64) continues to decline year by year and has shrunk to about 71.7 million in 2025. In fields such as nursing care, construction, and food manufacturing in particular, the active job openings-to-applicants ratio remains high, and more companies can no longer sustain their operations with domestic talent alone.

In response, the government is promoting expanded acceptance of international talent. The Specified Skilled Worker system, established in 2019, had its expected acceptance numbers expanded to 820,000 over five years under a 2024 Cabinet decision. The number of covered fields also grew from the previous 12 to 16, making it possible to hire international talent in new industries such as automobile transportation and railways.

The number of companies taking steps to hire foreign nationals is steadily rising. At the same time, the systems are complex, and it is often unclear which status of residence to use or how long procedures will take. First, let us organize the differences among the main statuses of residence that can be used for hiring.

For a full overview of accepting international talent, see also the current state of accepting foreign workers.

Comparing the main statuses of residence used in hiring foreign nationals

To employ a foreign national in Japan, a status of residence that permits work is required. The appropriate status of residence differs depending on the company’s hiring goals and the talent profile sought. The features of the main statuses of residence are organized in the comparison table below.

|---|---|---|---|---|---|

Specified Skilled Worker is a system that allows companies to hire ready-to-work talent in 16 fields facing severe labor shortages. It is well suited to companies centered on frontline work such as nursing care, construction, food service, and accommodation. You can review details for each field in the list of industries covered by Specified Skilled Worker.

Engineer/Specialist in Humanities/International Services is a so-called office-work status of residence. It covers international talent who take on work that uses knowledge gained at university, such as translation and interpretation, engineering, and marketing.

Highly Skilled Professional covers talent who score 70 points or more under a points system based on educational background, annual income, research achievements, and similar factors. While it offers many preferential measures, the pool of eligible people is limited. For details, see the list of types of status of residence.

Note that the current Technical Intern Training system is scheduled to transition to the Employment for Skill Development Program around 2027. Major changes are expected under the new system, including relaxed requirements for transfer (job change).

Hiring foreign nationals: procedures and flow in 6 steps

The basic flow when hiring a foreign national is as follows. Details differ by type of status of residence, but the overall process is shared.

Step 1: Develop a hiring plan and confirm the status of residence

First, clarify which positions will be filled by international talent. Confirming which status of residence fits that job content is the starting point. If the status of residence and the job content do not match, the application may be denied.

Step 2: Recruiting and finding talent

There are mainly three recruitment methods.

Using a staffing agency: Agencies specializing in international talent can also support confirmation of status of residence and document preparation
Hello Work: You can use Foreign Employment Service Centers
Direct recruiting by your company: Using job sites and social media

For Specified Skilled Worker talent, having candidates who already reside in Japan referred to you is faster and more efficient through to hire.

Step 3: Document screening and interviews

In document screening, checking the residence card is essential. Verify the type of status of residence, its expiration, and whether there are any work restrictions. In interviews, in addition to Japanese ability, job skills, and motivation to work, it is important to confirm that the candidate accurately understands the employment conditions.

Step 4: Conclude an employment contract

International talent are subject to working conditions equal to or better than those for Japanese employees. Employment contracts should preferably be prepared in a language the individual understands (their native language or English). Compliance with the Labor Standards Act and the Minimum Wage Act is mandatory.

Step 5: Apply for or change status of residence

For a foreign national already in Japan, file an “Application for Change of Status of Residence”; to bring someone from overseas, file an “Application for Certificate of Eligibility” with the Immigration Services Agency of Japan (immigration authority). Screening usually takes one to three months.

Step 6: Acceptance preparation and onboarding

Once status of residence is granted, proceed with preparations for joining the company. Main items include arranging housing, opening a bank account, enrolling in social insurance and employment insurance, and providing a life orientation. For Specified Skilled Worker, implementation of a support plan by a Registered Support Organization is required by law.

For more on the flow of hiring foreign nationals, see here, where each step is explained in greater depth.

Cost benchmarks for hiring foreign nationals

The cost of hiring foreign nationals varies widely depending on the type of status of residence and the hiring route. The main cost items are outlined below.

Staffing agency fees

When using a staffing agency, success-based fees are common. Market rates are roughly 20–35% of expected annual salary, but some agencies specializing in international talent use a fully success-based model with zero upfront fees.

Costs related to status of residence

Application for Certificate of Eligibility: no government fee (about 100,000–200,000 yen if you engage a gyoseishoshi administrative scrivener)
Application for Change of Status of Residence: 4,000 yen in revenue stamps (gyoseishoshi fees are separate)
Travel costs (when bringing someone from overseas): generally borne by the company

Fees paid to a Registered Support Organization (for Specified Skilled Worker)

For Specified Skilled Worker (i), accepting organizations are obligated to formulate and implement a support plan. When this is outsourced to a Registered Support Organization, the market rate is about 20,000–40,000 yen per person per month. Support includes pre-arrival guidance, airport pickup, housing support, life orientation, regular interviews, and more.

Other costs

Initial housing costs (security deposit, key money, prepaid rent, etc.)
Japanese language training costs
Medical checkup costs

If costs are a concern, considering a success-based referral service with no upfront fees first can help limit risk.

Five common challenges in hiring foreign nationals and how to address them

Here are challenges companies often face after deciding to hire international talent, along with concrete countermeasures. Also see the merits and demerits of hiring foreign nationals.

Challenge 1: Status of residence procedures are complex

There are 29 types of status of residence, each with different rules on whether work is permitted and under what conditions. Even choosing a status that fits your company’s job content requires specialized knowledge.

Countermeasure: Consult a staffing agency or gyoseishoshi administrative scrivener familiar with hiring foreign nationals. For Specified Skilled Worker, outsourcing procedures to a Registered Support Organization can both ensure legal compliance and reduce the administrative burden.

Challenge 2: Japanese communication barriers

There are cases where understanding work instructions or handling reporting, contacting, and consulting does not go smoothly.

Countermeasure: Confirm Japanese-Language Proficiency Test (JLPT) level at hiring. N4 is everyday conversation level; N3 enables basic workplace communication. After joining, giving instructions in plain Japanese and using translation tools together are effective.

Challenge 3: Trouble arising from cultural and customary differences

Sense of time, habits around reporting and consultation, and religious considerations (prayer times, dietary restrictions, etc.) are points that should be understood in advance.

Countermeasure: Conduct cross-cultural understanding training for staff before onboarding. Greater understanding on the accepting side greatly reduces stress for both parties.

Challenge 4: Risk of early turnover

If dissatisfaction with the workplace environment or daily life is not resolved, it can lead to early resignation.

Countermeasure: Hold regular interviews (about once a month) to identify work- and life-related issues early. Having a consultation channel available in the person’s native language greatly increases their sense of security.

Challenge 5: Internal acceptance systems are not in place

Frontline staff may not be used to working with international talent, and communication can become awkward.

Countermeasure: Clearly designate acceptance coordinators and introduce a mentor system. Building an internal mindset of welcoming people “as new colleagues,” not as “special cases,” is important. JITCO (Japan International Trainee & Skilled Worker Cooperation Organization) also publishes information useful for acceptance.

Keys to making hiring of foreign nationals successful

Finally, here are points to keep in mind to lead hiring of foreign nationals to success.

Do not choose the wrong status of residence: A mismatch between job content and status of residence is one of the most common causes of failure. In particular, grasp each system’s rules accurately—for example, Engineer/Specialist in Humanities/International Services cannot be applied to simple labor.

Do not underestimate post-hire support: Hiring foreign nationals is not “joining is the goal” but “joining is the start.” Support for daily life, opportunities for Japanese learning, clear career paths, and other efforts toward retention are required.

Choose a trustworthy partner: Partnering with staffing agencies and Registered Support Organizations that specialize in international talent can greatly improve the quality of system understanding, talent matching, and post-hire follow-up. Compare track records and support systems, then find a partner that fits your company.

Frequently asked questions about hiring foreign nationals

Q1. How long does it take to hire a foreign national?

When you hire international talent already living in Japan and a change of status of residence is not required, the process from interview to joining can sometimes move forward in a few weeks. On the other hand, when a change of status of residence or a new application is needed, it is generally advisable to allow about one to three months, including the immigration authority’s screening period. When bringing someone in from overseas, issuance of a Certificate of Eligibility, visa procedures, and travel preparations are also involved, so a hiring plan with even more lead time is necessary.

Q2. Does hiring foreign workers require different labor management than for Japanese employees?

Basic rules on wages, working hours, social insurance enrollment, and similar matters are governed by Japanese labor laws in the same way as for Japanese employees. However, because the scope of work permitted differs by status of residence, job content must be managed more carefully. There are additional points specific to each status of residence—for example, implementing a support plan for Specified Skilled Worker, and confirming the connection with academic background or job duties for Engineer/Specialist in Humanities/International Services.

Q3. What should a company hiring foreign workers for the first time start with?

The first step should be clarifying which roles, what level of talent, and under which status of residence you will hire. If this remains vague, job postings, screening, and status of residence checks will all lack focus. Next, designate an internal person responsible for acceptance and, even if only briefly, define an acceptance flow that includes housing and daily-life support—this makes it easier to reduce confusion after hiring.

Q4. What are common pitfalls when hiring foreign workers?

Typical issues include cases where the status of residence does not match the actual job duties, where employment conditions are not explained adequately, and where post-joining follow-up is taken lightly. In particular, assuming that “we hired them, so we’re fine” often leads to early turnover or workplace problems. It is important to treat pre-hire explanations, regular post-joining check-ins, and establishing a consultation channel as one continuous hiring process.

Summary

Hiring foreign workers is a practical option for addressing labor shortages and growing your business. Here is a recap of the key points in this article.

The number of foreign workers has surpassed approximately 2.3 million and is becoming an established hiring option
Status of residence should be selected according to purpose and job content from options such as Specified Skilled Worker, Engineer/Specialist in Humanities/International Services, and Highly Skilled Professional
The hiring process has six steps. Status of residence applications take one to three months, so a schedule with ample lead time is important
Costs can keep upfront risk lower if you choose a success-fee-based recruitment agency
Post-joining retention support (Japanese language support, daily-life assistance, and regular check-ins) is the key to long-term success

If you are considering hiring international talent for the first time, consulting a specialized recruitment agency first will help clarify the status of residence and hiring methods that fit your company.

YourBright introduces ready-to-contribute talent with Japanese language ability and work experience from a database of more than 170,000 international talent living in Japan. Initial and operating fees are ¥0. As a Registered Support Organization, we provide end-to-end support through post-joining retention.

Please feel free to contact us. We will propose the optimal plan tailored to your company’s industry and hiring needs.

Inquiries by phone: 03-6908-6143 (Hours: 9:00–18:00)

Details on our foreign talent recruitment service