Japan unlikely to raise cap for foreign workers despite labor shortages

Japan is unlikely to expand the cap for a visa category targeting industries short on labor, especially the food-service industry, the minister in charge of policies related to foreign nationals has said, even as business groups ask the government to reconsider restrictions.

The Specified Skilled Workers (SSW) Type I visa category for foreign workers has been a major topic of recent discussion in the food-service industry after the government halted accepting applications in April, when it was projected to reach the maximum 50,000 workers allowed for the industry.

However, after the labor shortage became more severe, the government said last month that it plans to tweak the program with the aim of accepting more foreign workers specifically for meal services at medical and welfare facilities starting next April.

Kimi Onoda was asked on Monday at a news conference if the government has plans to expand the cap even further. She replied that because demand for SSW is expected to decline in the long term, there is no need to.

“If productivity rises, working conditions improve and more (Japanese) people come to work in the sector, the shortfall, and therefore the number of (SSW) workers, should naturally decline,” Onoda told reporters at the news conference.

The minister’s remarks come as the administration of Prime Minister Sanae Takaichi moves to tighten immigration controls — such as revising guidelines for some resident statuses — and crack down on violations by foreign residents.

Other industries are also expected to reach their caps sooner than anticipated, prompting calls from business groups for the government to reconsider restrictions.

“Experts and other relevant parties should review the appropriateness of the cap, including why it was reached, and consider raising it if necessary,” the Japan Chamber of Commerce and Industry and the Tokyo Chamber of Commerce and Industry said in May.

Japan is grappling with chronic domestic labor shortages driven by its aging and shrinking population, with businesses increasingly relying on foreign workers to fill vacancies in sectors such as food service, nursing care and construction.

Onoda, however, pushed back against the notion that these shortages should automatically translate into higher caps for SSW. She argued that the program was intended to fill labor shortages only after industries had exhausted efforts to boost productivity, recruit domestic workers and improve employment conditions.

“As AI (artificial intelligence), robotics and other technologies advance, greater labor and operational efficiency should be expected,” she said, adding that the businesses should work on such measures before asking to expand the caps.

Separately, the government is expected to formulate a basic policy on the overall approach to accepting foreign nationals by the end of next March, which includes whether an overall cap on the number of foreign residents should be installed.