Japan must reckon with how it views foreign workers

Japan will substantially raise its fees for residence permits next month. Depending on the period of stay applied for, renewing or changing one’s residency status could cost as much as ¥75,000 (US$480). The application fee for permanent residency will rise to ¥200,000 from ¥10,000.

The government is also tightening the requirements for permanent residency. Applicants are already expected to be able to support themselves. New criteria proposed include an above-average household income, sufficient projected pension benefits, Japanese-language proficiency, and an understanding of Japanese institutions and rules governing daily life. The changes go beyond a simple revision of administrative fees.

Japan is becoming increasingly dependent on foreign labour. Faced with a shrinking, ageing population and labour shortages, successive governments have expanded the channels through which foreigners can enter and work, while refraining from describing Japan as an immigrant society.

Last year, the number of foreign workers hit another record high, reaching 2.57 million at end October. Although they accounted for only about 3 per cent of the labour force, the Bank of Japan estimates that foreign workers represented more than half of the labour force increase between 2023 and 2024.

Official data showed that last year, manufacturing employed 24.7 per cent of foreign workers, followed by the service sector at 15.2 per cent, wholesale and retail at 13.3 per cent, accommodation and food services at 12.4 per cent, and construction at 8 per cent.

The burden of the higher fees may not be evenly distributed. According to Japan’s 2020 population census, male foreign workers were considerably more likely than Japanese men to be in non-regular employment. Among male employees, excluding company executives, the proportion was about 15 per cent for Japanese nationals, compared with about 53 per cent for Brazilians, 45 per cent for Indonesians and around 40 per cent for Vietnamese, Nepalese and Peruvians.