Are you familiar with how the Specified Skilled Worker program is progressing in the construction industry? With labor shortages growing more severe in construction, many employers want to prioritize hiring people with strong skills and experience—starting with those who hold Specified Skilled Worker status.

Still, some may wonder whether the number of people pursuing Specified Skilled Worker status continues to rise—or whether it is falling. Below, we explain whether the Specified Skilled Worker program is advancing in construction.

Labor Shortages in Construction Are Growing More Severe

Are you aware that labor shortages in the construction industry are currently becoming more severe?

According to the Ministry of Internal Affairs and Communications’ Labour Force Survey, the workforce in construction is aging year by year. People aged 55 and older account for more than 30% of the workforce, while those 29 and under make up less than 10%. There are various reasons why staffing levels in construction remain so low.

First, bankruptcies among construction firms have accelerated, increasing the number of skilled workers leaving the industry. Second, the skilled workforce itself is aging. Third, because improvements in working conditions in the construction industry have not advanced sufficiently, younger people find the industry unattractive.

Construction is an indispensable occupation for our daily lives, and if this situation is left unaddressed, our way of life could eventually be threatened. One way to break through this situation is to hire foreign nationals with Specified Skilled Worker status. Before that, let us explain the factors behind how severe the labor shortage has become.

Working Conditions Are Too Harsh

It is not only aging that is at issue; even as work-style reform advances, working conditions remain too harsh—and that is one major factor. Construction has long been known for grueling conditions, and even with improvements under work-style reform, the industry still lacks popularity.

Long working hours are the norm, a two-day weekend is not standard, and workers sometimes must perform life-threatening tasks—there are many reasons the industry is unpopular. Even when construction companies post job ads to increase headcount, applicants do not come, and advertising spend goes to waste.

Traditional Ways of Working Do Not Fit

Even when someone finally wants to work in construction, traditional ways of working often lead to early turnover—another major factor. In much of the industry, workers are not taught each task carefully; instead they are expected to watch veterans and “steal” the craft. Having to learn only by watching does not suit younger people.

As noted above, more than 30% of construction workers are veterans aged 55 and older who are steeped in traditional practices, so they tend to impose the same style on younger workers. A watch-and-learn approach makes it hard to feel real growth. On top of that, being forced into practices that do not fit—such as cleaning before work starts or mandatory overtime—can leave people feeling constrained.

It is precisely because of this kind of work environment that labor is so hard to attract.

Is the Number of Specified Skilled Workers in Construction Increasing?

In short, there is a strong prospect that the number of Specified Skilled Workers in construction will continue to grow.

As of the end of September 2020, there were 642 Specified Skilled Workers in construction. Including transitions from Technical Intern Training and newly established work categories, there are 19 work categories in total. The work categories are as follows.

・Building sheet metal
・Carpentry
・Formwork
・Rebar placement
・Scaffolding
・Roofing
・Plastering
・Plumbing
・Heat and cold insulation
・Interior finishing / fittings
・Concrete pumping
・Construction machinery operation
・Tunnel boring
・Earthwork
・Telecommunications
・Rebar jointing
・Spray urethane insulation
・Marine civil engineering

Specified Skilled Workers can take on the work categories above, and the range of categories is expected to expand further. As categories broaden, the number of Specified Skilled Workers should also increase and help ease labor shortages.

Among the categories above, those from building sheet metal through construction machinery operation can transition from Technical Intern Training to Specified Skilled Worker. Categories from tunnel boring through marine civil engineering have no Technical Intern Training pathway and are newly established under Specified Skilled Worker.

Why Is Hiring Specified Skilled Workers in Construction Recommended?

Amid a severe labor shortage in construction, hiring Specified Skilled Workers is recommended. Still, some may wonder why hiring foreign nationals—rather than Japanese workers—is recommended.

Below, we explain why hiring Specified Skilled Workers in construction is recommended.

They Become Ready-to-Work Talent

Specified Skilled Worker status in construction is one status of residence for foreign nationals. It is a system for accepting foreign nationals who possess a certain level of expertise and skills and can contribute as ready-to-work talent in industrial fields where securing personnel remains difficult even after efforts to raise productivity and secure domestic talent.

In other words, this system enables employers to hire foreign nationals with high expertise, knowledge, and skills. For foreign nationals, a key benefit is that obtaining Specified Skilled Worker status effectively becomes a work visa, allowing them to be hired under an employment contract.

Hiring foreign technical workers has never been easy, but this system makes recruitment smoother. The government’s intent is likely to ease labor shortages through this approach.

Obtaining Specified Skilled Worker (ii) Removes Renewal Limits

A concern when hiring Specified Skilled Workers is the limit on renewals. Specified Skilled Worker has (i) and (ii); the limit for (i) is five years. In other words, even after hiring a Specified Skilled Worker, they may reach the renewal limit after five years and leave.

To avoid this, employers need to help Specified Skilled Workers obtain (ii) within those five years. Once they obtain (ii), there is no limit on renewing the period of stay, and cohabitation with family is also permitted—making them valuable talent who can be retained long term.

Once you hire a Specified Skilled Worker, it will be necessary to begin study toward obtaining (ii) right away.

Conditions for Hiring Specified Skilled Workers

When hiring Specified Skilled Workers, it is important to ensure that the conditions for employment are met.

First, the upper limit on visas issued for Specified Skilled Worker (i) in construction is a maximum total of 40,000. In other words, if that figure has already been exceeded, visas will not be issued—so confirm first whether visas can still be issued.

Next, regarding employment type: when hiring Specified Skilled Workers, only direct employment is permitted, so caution is required.

As for wages paid to foreign nationals, it is prohibited to pay below the level of Japanese workers performing the same work simply because they are ready-to-work talent. You must pay wages equal to or higher than those of Japanese workers doing the same work, on a monthly salary basis. Violations will constitute breaches of the Labor Standards Act, so take care.

Conclusion

Labor shortages in construction remain severe, but hiring Specified Skilled Workers is recommended because they can contribute as ready-to-work talent. If you do not need to train them from scratch, even though (i) is limited to five years, helping them obtain (ii) allows you to retain them long term.

Of course, when hiring you must ensure pay is equal to or higher than that of Japanese workers, so caution is required—but to ease labor shortages, why not consider hiring Specified Skilled Workers?