Japan Firms Offer More Perks To Attract Skilled Foreign Workers

As labor-strapped Japan faces a growing exodus of foreign workers due to low wages and other employment challenges, some companies are working overtime to retain them, Junko Horiuchi reported for Mainichi Japan.

The new system aims to explicitly foster and secure foreign talent. I Photo: Kyodo News

In response to acute labor shortages, Japan enacted legislation in June 2024 to replace the controversial foreign trainee program with a new system by 2027. The new system aims to explicitly foster and secure foreign talent.

The foreign trainee program has faced widespread criticism for harsh working conditions and human rights abuses, with many employers accused of exploiting the system for cheap labor.

Japan plans to admit up to 820,000 foreign nationals under its skilled worker visa over the next five fiscal years, starting in April 2024—more than double the number initially projected for the five years through 2023, Kyodo News also reported.

As more companies seek to hire foreign workers, Motoki Yuzuriha, president of Mynavi Global Corp., emphasized the need for employers to address factors discouraging workers from staying on the job.

"Our survey found that the reasons why skilled foreign workers leave jobs differ according to the industry sector, nationality, and employment period at the company," Yuzuriha said.

A nationwide survey conducted by the Tokyo-based firm over a one-year period through June 2024, covering three sectors and 350 skilled foreign workers who quit their jobs, revealed that "wage dissatisfaction" was the top reason for leaving among Vietnamese respondents.