As of 2026, the number of foreign workers in Japan continues to hit record highs.According to the Ministry of Health, Labour and Welfare’s “Notification Status of the Employment of Foreign Nationals,” the number of foreign workers reached approximately 2.4 million as of the end of October 2025—roughly double the level of a decade earlier. In a Japan where population decline and aging are accelerating, accepting international talent is no longer a “matter for consideration” but a “must-have management strategy.”

At the same time, the institutional environment is changing rapidly. Under the 2024 legal amendments, the fields covered by Specified Skilled Worker expanded from 14 to 16, and the Technical Intern Training program is set to transition to the Employment for Skill Development Program (full implementation in 2027). Companies that fail to keep pace with these institutional changes are already facing real problems such as compliance risk and declining retention.

Drawing on the latest statistics, this article organizes the current state of foreign worker acceptance, then provides an end-to-end explanation of trends by status of residence, common practical issues in the field, ways to avoid failure, and a checklist hiring managers can use immediately.

Current State of Foreign Worker Acceptance: Latest Statistics and Structural Change

In the “Summary of Notification Status of the Employment of Foreign Nationals (as of the end of October 2025)” released by the Ministry of Health, Labour and Welfare in January 2026, both the number of foreign workers and the number of employing establishments hit record highs. Key figures are as follows.

  • Total foreign workers: approximately 2.4 million (up about 8% year on year)
  • Number of employing establishments: approximately 330,000 establishments (about 2.2 times the level of a decade earlier)
  • Top nationalities: Vietnam (first), followed by China, the Philippines, Nepal, and Indonesia
  • Share by status of residence: Technical Intern Training accounts for about 21% of the total, while Specified Skilled Worker has expanded to about 16%

What stands out is the rapid growth of Specified Skilled Worker. Acceptance, which numbered only in the thousands when the system began in April 2019, exceeded 350,000 by the end of 2025. The 2024 reorganization into 16 fields has been a tailwind, and hiring activity is now fully underway in the newly added automobile transport, railway, forestry, and wood industry fields as well.

Another major change is the transition from the Technical Intern Training program to the Employment for Skill Development Program. The amended law was enacted in 2024, and the system has entered a transition period toward full implementation in 2027. Along with a shift in purpose from “skills transfer” to “human resource development and securing talent,” the change brings relaxed job-change restrictions and changes to accepting organizations’ management obligations. Companies already accepting technical intern trainees urgently need to review their internal management systems.

Acceptance Trends by Status of Residence and Practical Impact on Industries

When accepting foreign workers, the starting point is understanding which status of residence fits your industry and positions. Below we organize the current state of the main statuses of residence and how each affects industries and hiring practice.

Specified Skilled Worker (i) and (ii)

As of 2026, Specified Skilled Worker is the main route for accepting international talent. Although Specified Skilled Worker (i) has a cumulative upper limit of five years on the period of stay, Specified Skilled Worker (ii) has no renewal cap and allows family accompaniment, enabling hiring with long-term employment in mind. The 2024 reorganization into 16 fields also made it available in logistics (automobile transport), railway, forestry, and the wood industry. For exam categories, scope of work, and acceptance numbers in each field, see our detailed explanation in the list of industries covered by Specified Skilled Worker.

Employment for Skill Development (the system replacing Technical Intern Training in the transition period)

Under the Employment for Skill Development Program, which will be fully implemented in 2027, job changes are permitted when certain conditions are met, based on three years of development in the same type of work. Because job changes were in principle not allowed under Technical Intern Training, accepting organizations need a fundamental review of their retention strategies. To prevent job changes, three practical keys are: (1) aligning wage levels with the market, (2) presenting a clear career path, and (3) building a living-support framework.

Engineer/Specialist in Humanities/International Services

This status targets white-collar talent with a university degree or higher and allows work in areas such as IT, accounting, translation, and trade operations. The period of stay is up to five years (renewable), and roughly 100,000 cases are approved each year. It is also a primary employment route for international students in Japan and is a highly versatile status of residence usable across science and humanities fields.

Designated Activities (No. 46)

This status targets foreign nationals who graduated from a Japanese university or graduate school and allows a wide range of work that leverages Japanese language ability. Because it permits composite duties that include simple tasks not allowed under Engineer/Specialist in Humanities/International Services, use is growing in retail, food service, and other service industries. However, the “graduation from a Japanese university” requirement means the eligible pool is limited.

For an overall picture of types of status of residence and permitted activities, also see the list of statuses of residence.

Common Questions from the Field

Below we organize the questions YourBright most frequently receives from companies advancing foreign worker acceptance. Many companies considering hiring run into the same walls.

“I don’t know which status of residence to choose.”

This is the most common question. Specified Skilled Worker, Employment for Skill Development, and Engineer/Specialist in Humanities/International Services each differ in covered duties, required documents, cost, and period of stay, so the starting point for a decision is to specifically list the “job duties you will have the hire perform in the target position.” Once the duties are fixed, the options narrow considerably.

“Document procedures are cumbersome and we lack internal resources.”

Applications for Specified Skilled Worker status of residence can require more than 20 documents, including a support plan, employment contract, and records of pre-guidance. By outsourcing to a Registered Support Organization registered with the Immigration Services Agency of Japan, you can outsource everything from preparing application documents to filing with the Immigration Services Agency of Japan.

“People leave for other jobs after we hire them. We want to raise retention.”

Under Specified Skilled Worker (i), job changes within the same field are permitted. Common traits of companies with high retention include: (1) subsidies for Japanese language study and secured study time, (2) ongoing housing and living support, and (3) a clear medium- to long-term career path. Regular interviews at least once a month with staff who can respond in the worker’s native language also prove effective for catching dissatisfaction early and preventing turnover.

Advantages and disadvantages of hiring foreign nationals explains in detail measures to raise retention after acceptance.

Failure Patterns and How to Avoid Them

Below are failure patterns repeatedly seen in accepting organizations’ day-to-day operations, along with concrete ways to avoid them.

Failure pattern 1: Illegal employment risk from insufficient status-of-residence checks

Cases still frequently occur in which employers assume “they speak Japanese, so there is no problem” and skip checking the residence card. If someone works under a status of residence that does not permit employment, or employment continues after the period of stay has expired, the company may also be subject to the “crime of promoting illegal employment” (Article 73-2 of the Immigration Control and Refugee Recognition Act). Penalties are imprisonment for up to three years or a fine of up to 3 million yen.

How to avoid it: Before hiring, copy both sides of the residence card and verify authenticity via the Immigration Services Agency of Japan’s “Residence Card Number Validity Inquiry Service.” Register the period of stay in your HR system and set up automatic alerts three months before expiry.

Failure pattern 2: Support plans that exist only on paper

Organizations accepting Specified Skilled Worker (i) are obligated to implement the “Support Plan for Specified Skilled Worker (i) Foreign Nationals” prepared by a Registered Support Organization. If only the plan document is created and actual support (living orientation, regular interviews, complaint handling, and so on) is not carried out, this can be discovered in the Immigration Services Agency of Japan’s periodic notification reviews or on-site inspections and lead to a suspension of acceptance.

How to avoid it: Maintain support implementation records (living orientation records, consultation response records, and regular interview records) on a monthly basis and retain them for three years together with records of coordination with the Registered Support Organization.

Failure pattern 3: Assigning work based on overconfidence in Japanese ability

Some employers assign N3-level international talent (able to handle daily conversation) to drafting business documents or handling customer phone calls immediately after joining. N3 is the level at which “natural Japanese can be used in everyday situations,” and it is often insufficient for specialized document comprehension or complex phone negotiations. This mismatch leads to dissatisfaction, loss of confidence, and early turnover.

How to avoid it: At onboarding, clearly define Japanese language requirements by duty, and design an onboarding roadmap in advance so the first 90 days start with OJT and supporting tasks. Use regular interviews to check skill proficiency and adjust the pace of duty transitions in agreement with the individual.

Points Hiring Managers Often Overlook

Status-of-residence renewal timing and continuity-of-work risk

Renewal applications can be filed from three months before the period of stay expires, and approval usually takes one to two months. If the application has been filed before expiry, a “special period” applies and the person may continue working under the previous status of residence until a decision is issued. However, if the application is delayed, the special period does not apply and there is a risk that work must stop.

Cases repeatedly occur in which management falls through the cracks when the responsible person is transferred or leaves. Managing periods of stay must be shared as a team in the HR system, not left to a single individual.

Missed enrollment in social insurance and employment insurance

Foreign workers who work 30 or more hours per week (or three-quarters or more of prescribed working hours) are obligated to enroll in health insurance, employees’ pension insurance, and employment insurance on the same basis as Japanese employees. The misconception that “foreign nationals do not need social insurance” still lingers at some small and mid-sized companies, but if non-enrollment is discovered, retroactive enrollment and additional charges apply. It is important not to skip confirmation at the time of hire.

Forgetting the notification of foreign national employment status

When you hire or separate a foreign worker, you are obligated to file a “Notification of the Employment Status of Foreign Nationals” with Hello Work (Article 28 of the Employment Measures Act). Failure to file is subject to a fine of up to 300,000 yen. For Specified Skilled Worker, periodic notifications to the Immigration Services Agency of Japan (quarterly) are also required separately, so managing the notification schedule is an important duty for hiring managers.

The detailed flow for how to hire foreign nationals organizes notification obligations and required documents step by step for each hiring phase.

Practical Checklist Before and After Acceptance

The following are items hiring managers should confirm after deciding to accept foreign workers. Use them to inventory your company’s readiness.

When acceptance is decided

  • Have you specifically clarified the job duties of the hiring position in writing?
  • Have you confirmed a status of residence that fits those duties?
  • For Specified Skilled Worker: Have you completed the field’s acceptance criteria and procedures to join the council of the competent ministry?
  • Have you selected a Registered Support Organization and signed a consignment agreement (for accepting Specified Skilled Worker (i))?

During recruiting

  • Have you clearly stated status-of-residence requirements on the job posting?
  • During selection, are you checking the residence card’s expiry date and any work restrictions?
  • Have you explained employment conditions (wages, working hours, days off, social insurance) in the person’s native language or in plain Japanese and reached mutual agreement?
  • Have you prepared the document list required for a status-of-residence change application?

Around the start date

  • Have you planned living orientation (housing, bank accounts, medical facilities, garbage sorting, emergency contacts)?
  • Have you completed social insurance and employment insurance enrollment procedures by the start date?
  • Have you filed the notification of foreign national employment status with Hello Work?
  • Have you registered period-of-stay management in the HR system and set a three-month-prior alert?

From three months after joining onward

  • Is duty transition progressing according to the OJT roadmap?
  • Are you continuing regular interviews (at least once a month) in the person’s native language or via an interpreter?
  • For Specified Skilled Worker: Are you submitting periodic notifications (quarterly) to the Immigration Services Agency of Japan?
  • With full implementation of the Employment for Skill Development Program in 2027 in mind, have you begun reviewing your current management and support frameworks?

Diagram: Foreign Worker Acceptance Confirmation Flow (Text Version)

This is a simple flow hiring managers can share internally. In actual operations, we recommend turning it into a visual and sharing it with the team.

STEP 1 Clarify job duties

List the tasks and duties the hire will perform in the target position. Starting recruiting while “what they will do” is unclear leads to choosing the wrong status of residence.

STEP 2 Identify the status of residence

Confirm a status of residence that matches the duties (Specified Skilled Worker, Engineer/Specialist in Humanities/International Services, Designated Activities, and so on). Covered duties, requirements, cost, and period of stay differ by status of residence.

STEP 3 Confirm your company’s requirements

For Specified Skilled Worker, confirm the sector-specific acceptance criteria and council membership status. If not yet a member, start with the membership procedures.

STEP 4 Selecting a Registered Support Organization

Accepting Specified Skilled Worker (i) requires either outsourcing support or establishing an in-house implementation system (staffing and procedures). In-house implementation is subject to a system review.

STEP 5 Recruitment and Selection

Proceed with selection while confirming status of residence and job suitability. Verify the authenticity of the residence card at this stage.

STEP 6 Status of Residence Application

After the offer is accepted, prepare the required documents and apply to the Immigration Services Agency of Japan. This usually takes one to two months, so set the schedule by working backward from the planned start date.

STEP 7 Onboarding, Notifications, and Orientation

Complete Hello Work notification, social insurance enrollment, and life orientation around the start date.

STEP 8 Retention Support and Periodic Notifications

Continuously provide native-language support, regular interviews, and periodic notifications to the Immigration Services Agency of Japan (quarterly).

Summary

The landscape for accepting foreign workers is changing rapidly, including the expansion of Specified Skilled Worker to 16 fields and the transition to the Employment for Skill Development Program. As of 2026, here are the key points hiring managers should keep in mind.

  • Foreign workers have reached approximately 2.4 million, and Specified Skilled Worker has expanded rapidly to over 350,000
  • Under the 2024 system reform, Specified Skilled Worker coverage expanded to 16 fields. Automobile transport, railway, forestry, and the wood industry were newly added
  • In preparation for the full implementation of the Employment for Skill Development Program in 2027, companies need to prepare for eased job-change restrictions and changes to accepting organizations’ management obligations
  • Status of residence verification, support plan implementation, social insurance enrollment, and Hello Work notification must be addressed as basic compliance requirements
  • To improve retention rates, three practical measures are effective: Japanese language learning support, a living support system, and clear career paths

Whether your company is considering hiring international talent for the first time or already has acceptance experience, reviewing your systems in line with regulatory changes is urgent. Our foreign talent placement service provides end-to-end support, from introducing Specified Skilled Worker talent to application support as a Registered Support Organization. For guidance on how to use the system and build an acceptance framework that fits your company, please feel free to contact us.

Phone: 03-6908-6143 (Hours: 9:00 a.m.–6:00 p.m.)