This chapter analysis the policy framework for labour migration in Japan. It first describes the different channels for high skilled labour migration and compares their features relative to those in other OECD countries. It then studies the long-standing Technical Intern Trainee Programme as well as the recently introduced Specified Skilled Worker Programme for medium to low skill trades jobs. The efficiency of the migration processes (processing times, costs and complexity) is also evaluated. Finally, the chapter presents Japan’s smaller labour migration programmes, such as its Economic Partnership Agreement for nurses and care workers and the several programmes under Japan’s National Strategic Special Zones to be potentially scaled up.
Recruiting Immigrant Workers: Japan 2024
Recruiting Immigrant Workers
4. The policy framework for labour migration
Abstract
To live in Japan, foreigners need to be granted a status of residence (SoR) designated in the Immigration Control and Refugee Act (ICRRA). There are two main categories of SoR: those based on personal status (e.g. permanent resident, long-term resident), and those based on the authorised activities of the foreign national while in Japan. The authorised activities in Japan may be work-related, the focus of this publication, or not (e.g. student, visitor, cultural activities).
There are over 20 SoR for labour migration. This chapter analyses them under three main groups. First, it considers the SoR for high skilled labour migration. Second, it considers the two main programmes for medium to low-skilled labour migration: the Technical Intern Training Programme (TITP) and the recently established Specified Skilled Worker Programme (SSWP). Finally, it addresses the many existing small niche labour migration programmes.
Programmes for high skilled labour migration
The overall framework for high skilled migration in place in Japan today was established in the Immigration Control Act of 1951 (see Chapter 3). Since then, some SoR have been introduced and others revised but the guiding principles for high skill migration have remained the same. The immigration inflows in 2022, as well as the stock of immigrants at the end of 2022, vary considerably across the different SoR (Table 4.1).1
The largest channel for high skilled labour migration to Japan is the Engineer/Specialist in Humanities/International Services (EHI) SoR. It accounts for the bulk of high skilled migration inflows and stocks. Like other OECD countries, Japan also has migration channels for intra-company transferees (ICTs), entrepreneurs (Business Manager SoR), Professors and Researchers, as well as a Points-Based System (Highly Skilled Professionals SoR). Other SoR target specific skills, such as Instructor or Skilled Labour, or are specific for regulated professions (Medical Services, Nursing Care or Legal/Accounting Services). This section describes these different channels in more detail before turning to the general features of the policy framework for high skilled migration to Japan.
Table 4.1. Inflows and stocks, statuses of residence for high skilled migration, 2022
Note: The percentages over the rows add to 100.
Source: Immigration Services Agency.
More than half of high skilled migrants come to Japan under the status of residence Engineer/Specialist in humanities/International services
Most high skilled labour migrants arrive in Japan under the Engineer/Specialist in humanities/International Services (EHI) SoR. Sixty percent of labour immigrants who entered Japan in 2022 applied under this SoR, and 70% of labour migrants living in Japan at the end of 2022 were under the EHI SoR (Table 4.1).
Not only does the EHI SoR account for most of high skilled migrants arriving in Japan in the last years, but it has also driven the remarkable increase of high skilled migration to Japan over the past 15 years (Figure 4.1). Annual inflows of high skilled migrants increased almost 3‑fold from 2011 to 2019, from 23 600 to 68 200. The number of immigrants arriving in Japan under the EHI SoR increased over 5‑fold from 2011 to 2019. In 2022, the inflows of high skilled migrants were almost back to the pre‑pandemic levels, and EHI accounted again for 60% of this inflow.
Figure 4.1. Inflows of high skilled immigrants to Japan, 2011‑22
Note: Inflows under “Other high skilled” include all the statuses of residence in Table 4.1 other than Engineers/Specialist in Humanities/International Services.
Source: Immigration Services Agency.
This status of residence is quite broad and according to the official description is applicable to migrants who “engage in services which require specialised skills or knowledge pertinent to the field of physical science, engineering or other natural science fields or to the field of jurisprudence, economics, sociology or other humanities fields or to engage in services which require specific ways of thinking or sensitivity acquired through experience with a foreign culture” (see Annex Table 4.A.1).2
This is the main channel through which Japan hires highly qualified foreign workers. In 2019, the latest year of available data, over one‑quarter of jobs (and over one‑third in 2015) were jobs in Information, processing and communications technology (16%) or in Technology development (11%). An additional 7% were jobs in architecture, civil engineering, and surveying techniques (Table 4.2).
It is also an important channel to hire migrants with foreign language expertise. Jobs as translator/interpreter account for 13% of the total in 2019, and jobs in education, including language teachers in non-educational institutions, account for another 4%.
Overall, in line with the broad official description of the EHI SoR, the jobs of immigrants under this SoR are diverse. These include jobs for which expertise on foreign markets is likely to be required such as overseas trading (10% of jobs in 2019), as well as other jobs, such as in corporate sales, production control, or public relations and advertising.
Table 4.2. Main occupations of foreigners under the Engineer/Specialist in humanities/International services status of residence, 2015‑19
Source: Immigration Services Agency, available at www.moj.go.jp/isa/publications/materials/10_00024.html.
Japan is the fourth destination country in the OECD for intra-company transferees
Inflows of intra-company transferees account for approximately 15% of all inflows of high-skilled migrants. This is the second SoR when it comes to inflows, after EHI. Until the COVID‑19 pandemic, Japan consistently ranked fourth among destination countries for intra-company transferees. Inflows to Japan account for 4 to 6% of total OECD inflows. This is similar to the flows to Germany, but far behind the flows to the United States, which hosts half of all intra-company transferees in the OECD, or to the United Kingdom, which hosts between one fifth and one‑quarter of the total.
Table 4.3. Inflows of intra-company transferees to OECD countries
In thousands, 2011‑22
Note: Only inflows to the main OECD receiving countries are presented.
Source: OECD (2023[1]), International Migration Outlook 2023, https://doi.org/10.1787/b0f40584-en.
In Japan, the Intra-Company Transferee SoR may be renewed indefinitely. Until the 1990s, there was a maximum five‑year stay. However, this limit was lifted following a revision of the Immigration Control Act after the recommendations of the First Basic Plan and as part of the Deregulation Promotion Plan of the mid‑1990s.-
Unlimited stay for intra-company transferees also exists in Korea under the D‑7 visa but is unusual in the other OECD countries. Intra-company transferee permits are most often subject to a maximum duration of stay without extension in many countries.
Under the EU intra-corporate transfer directive (2014/66/EU), the maximum duration is one or three years, depending on the level, with a cool-down period (mandatory absence) of up to six months. In the United States, the L‑1 visa for intra-company transfers is valid for up to seven years and requires a one‑year period of employment outside the country before a new visa can be issued. In country status changes are nevertheless allowed, in the EU, the United States, as well as in Japan.
Like in other OECD countries, intra-company transferees are required to have been working at a foreign branch of the same company for at least one year. The conditions are identical for all intra-company transferees, regardless of job title, level within the firm or compensation.
In practice, intra-company transferees stay in Japan for relatively short periods and changes into other SoR are rare. Considering the 2011‑19 entry cohorts, only 12% of intra-company transferees remained in Japan 5 years after arrival. Among those still in the country, only 6% had changed into another SoR (see also Chapter 5).3 This is in contrast to the United States, where intra-company transfer is often a pathway to permanent residence in the economic category.
Like most OECD countries, Japan has specific migration tracks for researchers/professors and entrepreneurs
Researchers and professors
Like most OECD countries, Japan has specific SoR for researchers and professors. While the Professor SoR is designed for academics teaching and doing research at tertiary level institutions, the Researcher SoR is meant for research outside of the universities, at government or private institutions. This is also like the E‑1 visa for Professors and E‑3 visa for Researchers in Korea. It is also similar to the Researcher residence permit defined by EU Directive 2016/81, which applies to doctoral level or higher researchers admitted to conduct research for which doctoral-level qualification is required, on the basis of a hosting agreement. The EU Directive requires EU Member States to provide unrestricted access to the labour market for family members of researchers.
Entrepreneurs and start-up visas
Entrepreneurs wishing to migrate to Japan may apply to the SoR Business Manager. The eligibility conditions for entrepreneurs differ markedly from those for high skilled wage earners. The focus is less on the individual’s human capital and more on the profitability of the business. In Japan, to be eligible for the Business Manager SoR, applicants need to hold and invest a capital of at least JPY 5 million or employ at least two full-time employees; and have secured office space in Japan.
The profile of migrants entering Japan through the Business Manager SoR differs from that of other high skilled migrants. Migrant entrepreneurs are on average ten years older than high skilled migrants upon arrival, 42 compared with 32 years old; and slightly more likely to be men, 76% compared with 71%. Over half of entrepreneurs arriving in Japan between 2011 and 2019 came from China, compared with 24% for all high skilled migrants.
The requirements of the Business Manager SoR are difficult to meet for foreigners wishing to start a business in Japan. Several programmes have been launched since 2015 that allow applicants who wish to start a business to enter Japan without fulfilling all the requirements of the Business Manager SoR if they receive the endorsement of a municipality (see section below on Channels for start-up ). To do so, the applicant must first submit an application to the municipality, including their business plan. If successful, the applicant will be issued with a Certificate of Confirmation of Business Start-up Activities. The applicant may then be accepted in Japan through a temporary visa – a start-up visa. By the end of the validity of the visa (between 6 and 18 months depending on the programme) the migrant must satisfy the requirements for the Business Manager SoR, including registering the company and securing office space.
Most OECD countries have introduced start up visas in the last 10 years (OECD, 2022[2]). Similar to Japan, in some countries, start-up visa programmes have been introduced as an extension of existing entrepreneur or investor programmes, as for example in Italy. In other cases, start-up visa programmes have preceded the introduction of a full-fledged entrepreneur or investor programme.
OECD countries differ in the conditions offered to foreign entrepreneurs in terms of length of permits and rights of accompanying family. Japan offers a short-term temporary permit, which later requires a change of status. This is similar to most OECD countries. Only Australia and Canada offer immediate permanent status. In most other OECD countries, families may accompany the migrants and have access to the labour market. In contrast, in Japan, the migrant may only sponsor family once he/she has changed SoR to Business Manager and even then, dependents do not have automatic nor full access to the labour market (see also section Conditions for accompanying family are restrictive).
In Japan, municipalities approve the suggested business plan for the start-up visa (see also section Channels for start-up ). Some municipalities have set priorities areas for projects while others have not. In some OECD countries, such as Denmark, Italy and Estonia, selection committees are composed of incubators and investors. In terms of types of eligible business, requirements also differ considerable. For example, in Denmark, projects need to be considered tech driven, and in Lithuania, projects need to be in one of the six eligible sectors.
Other statuses of residence target specific skills or regulated professions
Language instructors
Japan accepts foreign language teachers through the Instructor SoR. The status of residence is meant for teachers in the educational system at all levels, from elementary to vocational, with the exception of tertiary education. Foreign language teachers hired by a company, or other non-educational institution are eligible for the EHI SoR. Foreign language teachers at university level are eligible for the Professor SoR. The Instructor SoR is not exclusive to language instruction, although it is its main purpose.
Korea is the only other OECD country with a similar work visa, the E‑2 visa for Foreign Language Instructor. The conditions of the Korean visa are somewhat stricter. It applies to language instruction only, and, until recently, was only open to citizens of English-speaking countries (the United States, the United Kingdom, Canada, South Africa, New Zealand, Australia and Ireland) who hold a 4‑year-university degree from of one of these countries.4
In Japan, to be eligible for the SoR Instructor, migrants need at least 12 years of education in the foreign language they intend to teach. To teach other subjects, applicants must have at least five years of work experience at an educational institution. Despite the stricter conditions of the Korean visa, the inflows to Japan under the Instructor status of residence are lower than to Korea: approximately 3 000 vs. 6 300 in 2022 (3 500 vs. 5 500 in 2019). These numbers do not include Working Holiday Makers who often also work as language teachers.
The profile of migrants under the Instructor SoR differs markedly from that of most high skilled labour migrants. There are no restrictions on the language taught, nor on the country of origin, for this SoR. Nevertheless, over half of incoming Instructors in 2011‑19 come from the United States, and 86% come from the English-speaking OECD countries (United States, the United Kingdom, Canada, Australia and New Zealand) (Figure 4.2). Furthermore, 52% of new entries in the same reference years are women, compared with 29% for skilled migrants overall.5
Figure 4.2. Nationalities of new immigrants: All high skilled migrants vs. Instructors
2011‑19 cohorts
Source: Immigration Services Agency.
Skilled Labour
The Skilled Labour SoR allow labour immigrants with specific skills “to engage in services which require industrial techniques or skills belonging to special fields”. Examples of specific skills include chef of foreign cuisine, sports instructor, aircraft pilot, or craftsman of precious metals. There is no available rationale for the eligibility of different occupations, nor a detailed list of eligible occupations. According to the 2011 White Paper on Immigration Control, most migrants under the skilled labour SoR are cooks. However, no statistics on the occupations of foreigners under this SoR, nor on their wages, exists.
There is no educational requirement for the Skilled Labour SoR. Instead, migrants need to show they have experience in the specific occupation they are intending to work in. For example, at least 10 years of work experience are necessary for most eligible jobs, such as in cooking, architecture, manufacturing, metal processing, animal training, or seabed drilling. For some occupations, the years of required experience are fewer: 5 years for wine sommeliers and 3 years for sports coaches. For pilots, a flight record of at least 250 hours is a pre‑requisite.
The numbers have been relatively small and stable throughout the years, with an average yearly inflow of approximately 4 000 new migrants, between 2011 and 2019, and again in 2022.
Regulated professions
Japan has three SoR for regulated occupations in law, accounting, and health. To be eligible for the SoR Legal and Accounting Services, immigrants need to be registered foreign lawyers, certified public accountants, or have other legal qualifications. Similarly, the SoR Medical Services applies to registered physicians, dentists or nurses, whereas the more recent SoR Nursing Care, created in 2016, applies to certified care workers (here referred to as “nursing caregivers”).
These SoR are almost exclusively given to immigrants already in the country, as an in-country change of status. Immigrants need to first acquire the Japanese training and certification to qualify to these statuses. As shown in Table 4.1, the inflows into these SoR are negligeable.
The stock of immigrants in Japan under these SoR is small. In 2022, there were 151 foreigners under the Legal and Accounting Services SoR, 2 467 under Medical Services and 6 284 under Nursing Care. The Nursing Care SoR was only established in 2017 but the number of foreign registered nursing caregivers living in Japan increased ten‑fold from 2019 to 2022 (from under 600 to 6 284). The trend is expected to continue given the high demand for care workers and the expansion of the feeder channels.
Most nursing caregivers enter Japan as international students and transition to the status of residence once they pass the certification exams. There are nevertheless several recent migration pathways to become a nursing caregiver. These are explained in detail further on in this chapter. Among those with nursing care SoRliving in Japan at the end of 2022, and who first entered Japan between 2011 and 2019, 85% arrived as international students and 14% under the EPA nursing care program.6
Japan introduced a Points-Based System 10 years ago
In 2010, the 4th Basic Plan called for the Introduction of a Preferential System Utilizing Points-Based System for Highly Qualified Human Resources. In 2010, Japan’s government decided to introduce this Points-Based System (PBS) for highly skilled workers, which was implemented in May 2012. It comprises three different streams depending on the type of occupation: Advanced academic research activities; Advanced specialised/technical activities; and Advanced business management activities.
While the PBS was introduced with explicit reference to PBS in Canada and Australia, the Japanese PBS serves an entirely different policy function. The PBS in Canada, Australia and New Zealand is a means for deciding eligibility for admission with immediate permanent residence status, including in the absence of a job offer. The PBS in these countries selects migrants based on human capital factors that favour long-term adaptability and integration in the host country. The PBS is therefore not primarily interested in the job characteristics, but in the characteristics of the migrants themselves. This includes migrants without employment who would have no other grounds to migrate temporarily or permanently to these countries.
The Japanese system is instead designed to offer higher-quality conditions to individuals who already hold a job offer and would have in any case qualified for an existing status of residence (usually Engineer/Humanities/International services or Researcher). Japan uses the PBS to offer concessions and advantages to younger, highly educated migrants in an effort to better attract and/or retain this talent over the long term. Hence, the Japanese PBS rewards job characteristics and salary in addition to the characteristics of the applicant, including education levels, age, language ability, local qualifications, or prior research achievements.
The United Kingdom also established a so-called PBS which requires a job offer as a basic eligibility requirement. The UK model is used primarily to restrict migration to high skilled migrants only. Vacancies are eligible to be filled if they meet salary requirements, with concessions to salary levels permitted for the highly educated or occupations with skill shortages. In this case, human capital characteristics do not play a role in the migrant selection process. In contrast, the Japanese PBS offers a long-term stay and fast-tracked permanent residency to highly skilled migrants who meet the points threshold.
In Japan, applicants need a total of 70 points to be eligible for the PBS and being granted the status of residence Highly-skilled professionals. Education and salary are the main points categories. Applicants who meet the top requirements for these categories 30 points for a PhD and 40 points for an annual salary of JPY 10 million, equivalent to about EUR 70 000 in the Advanced Academic Research Activities and Advanced Specialised/Technical Activities programmes) are eligible to migrate to Japan without scoring points in other categories. Further points are awarded for professional experience, age (except the Advanced Business Management Category), and bonus points – which include Japanese language proficiency or a degree or work qualifications from a Japanese institution. A full breakdown of the Japan’s points grid can be found in Annex Table 4.A.2.
Figure 4.3 presents a comparison of the structure of the PBS for selected OECD countries. First, wages play a relatively large weight in the Japanese and UK PBS. This is due to the fact that in these two countries, the PBS is demand-driven system, whereas in the other selected countries the PBS is mainly supply-driven.
Figure 4.3. Components of Points-Based systems in selected OECD countries, 2021
Share of points based on maximum possible points and threshold for qualification
Note: Refers to most recent PBS distribution. CRS: Comprehensive Ranking System for Federal Skilled Worker programme.
Second, human capital variables play an important role in the Japanese PBS. These are young age, academic qualifications and language fluency, all relevant predictors of a successful integration into the host country. Academic qualifications account for over 25% of the total points in the Japanese PBS. This share is like that in Australia, Canada, or New Zealand. The share of points that reward younger migrants is also similar to that in Canada and New Zealand. In Australia, the age category has a heavier weight with the points for age contributing around 46% of the total required to reach the eligibility threshold. The weight of language fluency in the Japanese system is more like the one in the United Kingdom than in the other countries. Language fluency is more important in supply-driven systems in which if accepted into the country, the migrant will in many cases need to find a job. In demand-driven programmes, like in Japan and the United Kingdom, the migrant already has a foothold in the labour market.
Third, Japan has the largest share of points, almost one‑third of the total, awarded to other factors. These include research achievements (e.g. publications and patents), holding a job offer from strategic employers (e.g. an organisation which receives financial support measures for the promotion of innovation or a small or medium sized enterprise whose experiment and research expenses add up to more than 3% of the total revenue) or in strategic projects (an advanced project in a growth field). Bonus points are also awarded for migrants hired by companies eligible for projects approved by the local government.
There are few restrictions to high-skilled labour migration
High-skilled migration to Japan is entirely demand-driven. Irrespective of the SoR the migrant applies for, a job offer from a Japanese employer is a pre‑condition.
In Japan, there are no numerical limits, nor targets, for the total annual high skilled immigrant intake. There are also no limits by status of residence, nor by occupation. Furthermore, job offers to foreigners do not need to be labour market tested. Employers do not need to give priority to citizens, nor residents.
The SoR are occupation based, a main condition is that the job offer in Japan is in an occupation eligible for the SoR. Additionally, the wage must be at least equal to that of the native‑born in an equivalent job for all high skilled SoR. Migrants are free to change employers as long as the new job offer also fulfils the requirements of the SoR. Migrants need only to notify ISA of the job change within 14 days. Alternatively, migrants may request a change of status of residence if the new job falls under the criteria for a different SoR.
Most of the statuses also have requirements in terms of educational attainment and/or work experience. Migrants need at least a bachelor’s degree to be eligible for the EHI or Instructor SoR, and a master’s degree for the Researcher SoR. There are also work experience requirements, which are partially interchangeable with the educational requirements. For the EHI SoR, there is no minimum experience required. Nevertheless, for jobs in International Services, if migrants have at least 3 years of work experience, they are not required to have a bachelor’s degree. For jobs as Engineer and Specialist in Humanities, migrants are eligible if they have 10 years of work experience even if they do not have a bachelor’s degree. Finally, as explained in the previous section, there are specific language and experience requirements for Instructors.
The eligibility conditions are stricter for the PBS. As for the other SoR, migrants need a job offer in an eligible occupation, and in addition, they need to score at least 70 points according to the PBS grid. The total required points may be acquired through many different combinations of skills and achievements. Nevertheless, the minimum requirements in terms of education and experience are stricter than for the other high skilled SoR. Migrants need at least a bachelor’s degree – a master’s degree for the research stream – and three years of work experience.
The occupational foundation of the statuses of residence – in particular for the EHI and Skilled Labour SoR – implies that not all occupations, and hence not all high-skilled jobs, are open to immigrants. However, it is difficult to evaluate what share of high-skilled jobs are open to migrants. There is no published official complete list of eligible occupations for each status of residence. When filling out the certificate of eligibility, applicants must indicate an occupation corresponding to their job offer. ISA provides a list of occupations that are compatible with the selected SoR (see Annex Table 4.A.3).
The occupations stated in the certificate of eligibility do not match the Japanese classification of occupations. Hence, it is not possible to compare the eligible occupations to the distribution of occupations in the Japanese working population.
Other OECD countries have high skilled visas that are restricted to specific occupations. For example, the United Kingdom has a Skilled Worker Visa that may only be used by migrants with a job offer in a pre‑determined list of occupations. The Home Office publishes the list of occupations with their occupational code in the national occupational classification.7 Moreover, the Home Office publishes the annual going rate wage (hourly and annual) for each occupation in the eligible list, which is the floor for eligibility, although exceptions may apply. Another example are the occupational requirements for migrants to apply for the Canadian Experience Class programme. Migrants need to have a job offer in an occupation classified as level 0, A or B (managerial, high-skilled or skilled) in the National Occupational Classification.
Conditions for accompanying family are restrictive
The conditions for accompanying family are the same for all high-skilled statuses of residence, except for the PBS which offers more favourable conditions. Almost all high-skilled migrants are allowed to sponsor dependents.8 However, accompanying family is restricted to married spouses and dependent children. In the case of children from previous marriages, or non-biological children, the process requires additional steps. Common-law partners are not eligible for the Dependent SoR.
Under the PBS, migrants may additionally sponsor ascendent family members as well as domestic workers.9 Parents of the migrant accepted under the PBS, or the parents of the migrant’s spouse, may accompany the migrant to Japan under the condition that the migrant is raising a child aged 7 and under, or expecting a child. Furthermore, the annual household income must be equal to at least JPY 8 million and the accompanying parent(s) must live together with the principal applicant.
Spouses of skilled workers, migrating to Japan under the Dependent SoR, do not have automatic, nor unrestricted, access to the Japanese labour market. To work in Japan, dependents need to obtain a Permission to Engage in an Activity other than those Permitted by the Status of Residence from the Immigration Services Agency. The work may not exceed 28 hours per week, and the job must be eligible for one of the existing high skilled SoR (that is, excluding technical intern trainee or specified skilled worker). Alternatively, spouses may obtain their own labour related SoR.
Spouses of Highly Skilled Professionals who are issued a Designated Activities SoR do not need to obtain a Permission to Engage in an Activity other than those Permitted by the Status of Residence from the Immigration Services Agency. Furthermore, they may work full-time. However, they may only work in jobs eligible for the SoR: Engineer/Humanities/International Services, Entertainer, Instructor, Researcher.
The trend over the past years in most OECD countries has been to facilitate access to the labour market for dependents of highly skilled workers. In fact, in many OECD countries, accompanying dependents of high skilled migrants are granted unrestricted access to the labour market. This is the case for example of dependents of migrants under the EU Blue Card; under temporary permits for high skilled migrants in Canada; or under the Skilled Workers visa in the United Kingdom. In Germany, new rules have recently been put in place and any family member with a residence title for the purpose of family reunification has unrestricted and permanent access to the labour market upon arrival.
Dependents’ access to the labour market is more restricted in the United States. Dependents of most temporary visas are allowed to accompany the migrant to the United States under a H‑4 visa. However, they need to apply for an Employment Authorization to be able to work. Dependents of H1‑B visas are typically granted this authorisation, although they must pay a fee of about USD 500 and may have to wait many months for their request to be approved.
All high skilled statuses of residence are temporary but indefinitely renewable
All labour migration permits are temporary upon arrival in Japan. However, all high skilled SoR are indefinitely renewable as long as the conditions of the SoR continue to be met. The initial duration of the SoR, and subsequent renewals, for all high skilled SoR may be 5 years, 3 years, 1 year or 3 months, except for Highly-skilled professionals who are consistently granted a 5‑year permit.10
The ISA exerts considerable discretion on the duration of the granted SoR. Despite similar rules for all high-skilled SoR, the duration of the initial permit varies considerably across SoR (Figure 4.4). Some of the observed differences are likely to be due to the immigrant’s work contract. For example, many Professors are on short-term academic exchanges. Close to 30% of Professors have an initial permit of 6 months or less, and under 20% of initial permits have a duration larger than 1 year.
The characteristics of the firms hiring the immigrants are also taken into account by the ISA to determine the duration of the permit. There is no required certification of firms to hire foreign workers. However, immigrants hired by firms that are more established, have experience in hiring foreign workers, or have a better financial situation may be more likely to obtain longer initial permits for their hires.
The duration of the permit also correlates with the expected temporariness of the SoR. Almost all initial permits under the Skilled Labour SoR have a duration of only one year, whereas over two‑thirds of initial permits for Instructors are 3 years. Migrants arriving in Japan under EHI SoR often have longer duration permits. Close to half are granted an initial permit with a duration of at least one year and 20% are granted a five‑year permit.
Figure 4.4. Duration of initial status of residence
2011‑19 entry cohorts
Source: Immigration Services Agency Data.
Given that all permits are indefinitely renewable, the initial duration of the permit does not indicate the total duration of stay in Japan. The initial duration of the permit imperfectly correlates with the total duration of stay. While Highly Skilled Professionals and Engineers/Specialist in Humanities/International Services tend to stay in Japan longer than immigrants under most other SoR, so do immigrants under the Skilled Labour SoR. An estimation of the duration of stay in Japan by status of residence is presented in Chapter 5.
High skilled migrants have new faster routes to permanent residence
Statuses of residence for high skilled migrants are indefinitely renewable, as long as the conditions of the SoR are met. In principle, after 10 years in the country, under a work-permit or family-based SoR, migrants may apply for permanent residency. Relative to other OECD countries, this requirement is rather strict. In settlement countries, like Australia, Canada and New-Zealand, highly skilled migrants are already often permanent residents upon arrival, and in European countries, or in Korea, they are eligible after 5 years of residence.
Access to permanent residence is faster for migrants under the Highly-skilled professionals SoR. Since 2015, after three years under the Highly Skilled Professionals (i) SoR, immigrants are eligible for the Highly-skilled professional (ii) status of residence which grants indefinite period of stay. Furthermore, since 2017, Highly-skilled professionals who score 75 points may apply for permanence residency after three years in Japan, and those who score 80 points, or more, are eligible after one year.
Under the new J-Skip visa, established in April 2023, migrants will only need one year of residence before applying to permanent residence under certain conditions. For the academic research and specialised/technical streams, the conditions are that the immigrant has a master’s degree, or 10 years of work experience, and an annual income of 20 million yen. For the business management stream, immigrants need 5 years of work experience and annual income of 40 million yen to be eligible for the J-Skip visa.
Processing times are short, costs are low, and digitalisation of processes is improving
Migrating to Japan
To migrate to Japan under a work-related status of residence, migrants need to obtain a visa while still in the country of origin. With their job offer in hand, migrants first need to apply for a Certificate of Eligibility (CoE) for the relevant SoR from the ISA (Figure 4.5). The Certificate of Eligibility attests that the migrant, as well as the job offer, meet all the conditions for the requested SoR. The CoE needs to be requested in Japan from the Regional Immigration Service Bureau. An immigration lawyer typically files the application. The rejection rate when applying for the CoE is low. It has hovered around 10% over the past 10 years.
With the CoE in hand, migrants can then apply for a visa at the Japanese Embassy or Consulate in the country of origin. Once the visa is granted, migrants may travel to Japan. At the port of entry, the ISA checks the migrant’s passport and visa, and determines the duration of the permit which is in almost all cases between 3 months and five years.
Figure 4.5. Steps to obtain a Status of Residence in Japan
Source: Adapted from Immigration Control and Residency Management, 2021, Immigration Services Agency.
Fees and processing times
The processing times vary across SoR (Table 4.4). For EHI, which accounts for most incoming high-skilled labour migrants, the average processing time for the CoE is 44 days. Hence, adding the time to request a visa at the embassy of the country of origin, one may expect that there will be about two months from the moment the migrants have a job offer until they are able to start working in Japan.
Table 4.4. Processing time, average number of days, 2017‑22 average
Note: The 2017‑22 average presented is the unweighted average over 23 quarters, from 2nd quarter of 2017 to end of 2022. There is no information on the quarterly number of cases handled. Each quarterly average is the average number of days from the receipt of the application for the certificate of eligibility until the delivery of the certificate. In cases where additional materials are requested, the number of days until the submission of such materials is included.
Source: Immigration Services Agency, www.isa.go.jp/en/publications/materials/nyuukokukanri07_00140.html.
The processing time is faster for Highly Skilled Professionals, under the PBS. It takes on average 20 days to process the CoE for stream (a) academic research and 24 days for stream (b) specialised/technical. The processing time is significantly higher for migrant entrepreneurs (Business Manager) – 76 days – and the business management stream, stream (c), of the PBS – 43 days. The processing time is also relatively high for applications to the Skilled Labour SoR – 59 days.
Permits for highly skilled migrants are indefinitely renewable, few migrants are granted an initial 5‑year stay and applying for permanent residence requires in principle at least 10 years of residence. In this context, it is important to have a swift process for the extension of the period of stay. The number of applications for extensions of stay is significantly larger than that of applications for the CoE, 761 000 vs. 592 000 in 2019.
The processing time is shorter in the case of permit renewals than initial permit issuances, for most SoR. For the SoR with the longest CoE processing times, the difference is significant. The average processing time of a renewal for Business Manager is 33 days compared with an initial processing time of 78 days. Similarly, for Skilled Labour, the processing time goes down from 59 to 29 days.
Similarly, there are many applications for change of status of residence, 290 000 in 2019. The most common change of status is from a student status to work status (mainly EHI). The average processing times for applications of changes of status is shorter than for initial applications but not drastically so. For example, the processing time to change into the EHI SoR is 39 days, compared with 44 days for CoE applications.
Furthermore, the rejection rate of requests to extend the period of stay has consistently been under 1% over the past 10 years. Similarly, the rejection rate of requests to change status of residence has been under 2%.
There is no fee to apply for the CoE. The fee to apply for an extension of stay, or for a change of status of residence, is JPY 4 000, approximately USD 30. Immigration processing fees can be quite high in some OECD countries. For example, the fee to request a labour market impact assessment, necessary to hire a temporary foreign worker in Canada is CAD 1 000 or USD 740; and the processing fee for a fast-track application in Denmark is DKK 4 405, approximately USD 650.
Streamlining immigration processes
The processing times for initial permits, as well as for renewals, compare favourably with other OECD countries. The process is also faster in Japan given that there is no requirement for labour market tests. In many OECD countries – such as in Australia, Belgium, Canada, or the United Kingdom, among others – companies need to advertise a vacancy up to one month, and demonstrate their efforts to recruit resident workers, before making a job offer to an immigrant. These requirements significantly increase the time between the moment the vacancy is posted and that when the immigrant starts working. They also require co‑operation, and transfer of documents, between the Ministry of Labour and Ministry of Justice (or Interior), which slow the process and increase the risk of loss of documents when these are in paper form.
Many OECD countries are streamlining immigration processes to bring in talent from abroad faster. One way to do this has been through creating fast tracks for specific immigration categories and/or companies. In Japan, one of the aims of the PBS is to fast-track applications of highly skilled migrants. The PBS targets a processing time of 10 days or less. As seen in Table 4.4, the processing times for the PBS are twice as long as the target but are nevertheless the shortest processing times among highly skilled SoR.
In some OECD countries, there are fast track applications for subsets of companies. For example, in Canada, under the Global Skills Strategy, innovative companies, certified by Employment and Social Development Canada, seeking to fill a position which requires unique and specialised talent in order for the firm to scale‑up and grow, benefit from faster permit processing time, targeted at two weeks. Similarly, Denmark and Finland also have fast-track schemes for certified companies, with reduced documentary requirements; Finland processes complete on-line applications in eight days.
In countries and immigration streams in which a labour market test is required, a solution has also been to waive this requirement for occupations in shortage occupation lists. In Canada, the labour market test is not required for companies seeking to hire highly-skilled foreign workers in Canada’s Global Talent Occupations List – a shortage occupation list, focused mainly on science, technology, engineering and mathematics (STEM) occupations.
A major improvement of processing times in many OECD countries has been due to increased digitalisation of processes. Japan has been relatively slow in the take‑up of digitalisation of immigration processes. However, there has been significant progress since 2019, in the context of a government-wide effort to increase the digitalisation of processes under the Regulatory Reform Implementation Plan. Prior to 2019, all immigration processes had to be filed in paper.
Currently, on-line processes are possible for seven types of applications (obtention of the CoE, re‑entry permission, certificate of authorised employment, acquisition of status of residence, extension of period of stay, change of status of residence and permission to engage in activity other than that permitted under the status of residence). The only limitation is that foreign nationals need an Individual Number Card to be able to use the On-line Residency Application System themselves. This means that on-line applications are not open to those living outside Japan. Moreover, since March 2023, the CoE can be issued in electronic format. This removes the step of mailing the CoE original to the immigrants in the country of origin, which streamlines and reduces the costs of the immigration process.
The current on-line processes are still in need of improvement. The ISA conducted two waves of a survey to evaluate the on-line immigration processes, in 2021 and 2022. The latest results show that approximately half of respondents do not use the system due to its difficulty of use. Some basic features are unavailable, such as the possibility to attach multiple files, save the data entered for future processes, or pay the application fees electronically. Based on the surveys, the ISA is continuously improving the system, which should lead to increased usage and ultimately shorter processing times.
Temporary labour migration programmes for low-skill and medium-skill trades jobs
Japan’s labour migration policy settings exclude admission and employment for persons without skills (see Chapter 3). At the same time, since the 1990s there has been a growing presence of foreigners employed in low-skilled employment in a wide range of sectors. Since there are no labour migration channels specifically designated for low-skilled employment, these workers have come primarily through three channels: as Technical Interns; as Long-Term Residents of ethnic Japanese origin; and as international students.
The channels for descendants of Japanese emigrants have ceased to play an important role (see Chapter 3, Box 3.1) while the employment of international students, despite its magnitude, cannot be considered a labour migration channel (see Chapter 6). The understanding of the TITP, on the other hand, has evolved to the point where participants are not only treated as employees under Labour Laws but it is accepted by participants and employers as a labour migration channel in all but name. The policy discussion also treats TITP as part of the labour migration system. This section will describe the TITP as a programme for employment in jobs requiring a low level of qualifications, and look at the inflows, characteristics and employment of its participants. It will then examine inflows and characteristics of participants the Specified Skilled Worker Programme which was introduced in 2019 as a channel for workers meeting occupational skill thresholds.
Foreigners are eligible for the TITP in selected industries to perform specific sets of tasks under an approved training plan (see Chapter 6). The training plan is based on the principle that the skills would be difficult to acquire in the home country, are meant to be used upon return, and cannot be acquired mostly through the repetition of simple work. Technical intern trainees are allowed in Japan for up to 3 or even 5 years, conditional on passing the programme’s skill tests after one and three years of training. Technical intern trainees are linked to a Japanese employer and voluntary change of employers is usually not possible. They may not sponsor dependents and have no pathway to permanent residency.
The current structure of TITP involves a number of different actors in Japan and the origin country. Identification of participants is done by a sending organisation in the origin country. The sending organisation is accredited by origin country governments, which have signed an MoC with Japan (Table 4.5). The sending organisation maintains some responsibility throughout the TITP career, which makes it more than just a recruitment agency – different from labour migration channels in most OECD countries. The sending organisation is required, for example, to provide post-return support.
Table 4.5. Japan has signed Memorandum of Co-operation with 14 countries
MoCs between the Japanese Ministry of Foreign Affairs, Justice, and Health, Labour and Welfare, and partner countries
Source: Ministry of Health, Labor and Welfare www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000180849.html.
In Japan, a supervising organisation is responsible for supporting the employer or “receiving organisation” in the “hosting” of the trainee. The Organization for Technical Intern Training (OTIT) is the body which oversees the training plan. The Ministry of Justice and the Ministry of Health, Labour and Welfare oversees the system. Employers are responsible for the daily life of trainees, including securing appropriate housing, while the supervising organisation provides them with support in preparing for tests (Figure 4.6).
Figure 4.6. TITP involves multiple actors with different responsibilities in origin countries and Japan
Schematic diagram of the process for recruitment and employment of TITP workers
The Technical Intern Training Programme differs from Trainee Programmes in most OECD countries
Most OECD countries admit trainees, but in much smaller number than Japan (Box 4.1). Japan has a trainee status of residence, intended for foreigners who come to perform “activities to acquire skills at a public or a private organisation in Japan”. The duration of stay can be 3, 6 or 12 months. This status allows foreigners employed abroad by Japanese firms to learn how to operate equipment or participate in corporate training, for example. Prior to 2011, trainees in the first year of TITP were classified in this category – numbers were much higher (102 000 admissions in 2008) and stays were longer (87 000 mid to long-term residents with the status of residence of “Trainee” in 2008). Since 2010, very few trainees stay in Japan for an extended period. While annual inflows of trainees ranged between 13 000 and 16 000 between 2016 and 2019, fewer than 1 500 were mid- to long-term residents in Japan at the end of each year. This programme is comparable to the “trainee” visa used in other OECD countries.
Box 4.1. Trainee programmes in OECD countries
Most OECD countries have “trainee” programmes. These are generally intended for short-term skills transfer and to gain familiarity with processes or equipment. Trainees are not meant to provide labour. They are exempt from labour market tests and other measures meant to protect the labour market. In many cases, the firms who bring trainees do so either in the context of in-house training or preparation of agents and representatives abroad, or as part of mobility schemes organised by governments.
This is similar to the TITP for individual-enterprise‑type technical intern training, which is meant for employees of a Japanese public or private organisation whose place of business is located overseas (or an employee of a foreign public or private organisation with a close relationship with a Japanese organisation whose place of business is located overseas), who has been accepted by the Japanese organisation, for training at a place of business of the organisation in Japan based on an employment contract with the organisation. Only a small share of TITP in Japan is individual-enterprise type (less than 4% in 2022).
Japan admits more trainees than other OECD countries (Table 4.6). Trainees here exclude TITP and are limited to those without an employment relationship. The nationalities of trainees reflect the presence of Japanese businesses. Trainees in Japan rarely come from countries with which a visa-free regime is in place, suggesting that the trainee Status of Residence is not used for short stays when visa waivers are applicable.
In addition to these trainee statuses, there are also several statuses under “Designated Activities” which apply to interns, such as summer interns and cultural exchange (Box 4.2). Different rules apply and these are not included in the table.
Table 4.6. Japan receives more “trainees” than most OECD countries
Temporary migration by categories considered “Trainees”, 2017‑22
Note: Countries are those for which data are available on “trainees”. For Japan, only “Trainees”, not “Technical Interns”.
Source: OECD International Migration Database.
TITP became the main channel for foreigners to work in jobs with no skills requirements
TITP in practice is the single largest channel for labour migration in Japan and grew in the 2010s to eclipse the contribution of Long-Term Residents and other categories of foreign workers. The trainee programme throughout the 2010s was the main programme available to Japanese businesses in many sectors to recruit foreign workers. The absence of a skills threshold or language requirement makes TITP accessible for candidates in origin countries. The number of TITP participants doubled in the span between 2015 and 2019, to exceed 400 000 (Figure 4.7). Inflows of TITP workers exceeded 160 000 in 2019 before a pandemic-related interruption; they resumed in 2022.The onset of the COVID‑19 pandemic travel restrictions, which prevented any new arrivals of TITP workers, interrupted this trend. Business activity was also disrupted, pushing many TITP workers out of their jobs and leading the government to authorise exceptional employment access for those unable to depart. A new cohort of TITP participants entered in 2022, indicating a full return to the pre‑pandemic trend. Further, the number of TITP participants in TITP 3 staying beyond three years increased even during the pandemic, to reach more than 75 000 in 2022 – notable since not all TITP sectors allow this extension.
Figure 4.7. The Technical Intern Programme peaked in 2019
Stock of Technical Intern Trainees and Specified Skilled Workers, end of year, 2012‑22, thousands
Note: TIT 1, 2 and 3 refer to the phases of the programme. TIT (i) is the first year, TIT (ii) is Year 2‑3 and TIT (iii) is the extension to five years.
Source: Ministry of Justice, 2023.
Figure 4.8. TITP inflows grew sharply during the 2010s
Initial entries to Japan by TITP workers and SSW workers, 2010‑22, in thousands
Note: SSW begins in 2019. Excludes “trainees” who constituted the bulk of participants in the TITP prior to 2012.
Source: Ministry of Justice.
For many years, the main nationality of TITP participants was China. It was not until the 2010s that other origin countries appeared in the statistics in large numbers, and it was only in 2016 that China ceded its position to Viet Nam.
The main origin for both TITP and SSW participants is Asia, principally Viet Nam (Figure 4.9). TITP relies on MoCs between the Government of Japan and the government of the origin country. There were 23 countries from which TITP participants came in 2020, but more than 85% came from the top four countries (Viet Nam, Indonesia, Philippines and China). Myanmar rose to fifth place in the 2010s.
Figure 4.9. Viet Nam and Indonesia are the main origin countries for both Technical Interns and Specified Skilled Workers
Source: Ministry of Justice, 2023.
TITP is concentrated in several sectors
The main sector of employment of TITP workers is manufacturing (Figure 4.10), although its share of total TITP employment has been falling continuously since reporting began in 2010. In 2022, manufacturing comprised less than half of TITP employment for the first time. Construction has been a growing share of the total and in 2022 comprised 21%. Wholesale and retail accounted for 8%. Healthcare was absent prior to 2018 but in 2022 accounted for 4% of TITP employment.
Figure 4.10. TITP participants mostly work in manufacturing
Trainees by sector of employment, employer reports, 2010‑22, in thousands
Note: Healthcare (Medical care and welfare) was not reported before 2018. HORECA = Lodging and food services.
Source: MHLW.
A more detailed breakdown of TITP activities is provided by the training plans approved by OTIT for each trainee (Table 4.7). Food manufacturing accounts for 19% of the plans approved between 2017 and 2021, while machinery and metal processing is just 17%. Construction is the single largest sector but comprises only 20%. Agriculture accounts for about 10%.
Table 4.7. TITP training plans indicate a wider distribution of sector job categories
Approved TITP plans by sector, 2017‑21
Source: OTIT (2023).
The Specified Skilled Worker Programme (SSWP) imposes a skills threshold but offers better residence conditions to workers
The Specified Skilled Worker Programme was approved in 2018. It has two tiers. The first tier is for workers with considerable knowledge and experience (see Chapter 6). The second tier is for those with high-level technical skills who can supervise other workers as a foreman or other technical supervisory role. Migrants under the new SSWP are eligible to work in 12 industries selected for being industries with acute labour shortages.11
There are several pathways into SSWP (Figure 4.11). In contrast to the TITP, candidates must pass an industry-specific skills test and a Japanese language test to qualify for the programme. However, participants who have completed TITP (ii) in the same industries also qualify for the first tier of the SSWP. TITP participants who wish to enter SSWP in another sector must pass the exam for that sector.
Figure 4.11. There are many routes into SSW from Japan and from abroad
Pathways into the Specified Skilled Worker Programme
Participants in the first stream of the SSWP may stay in Japan up to five years. Workers may change employers within the same industry during their stay or take the test to change industry. For SSW (i), family reunification is not allowed and there is no pathway for permanent residency unless workers qualify for another SoR such as SSW (ii).
In contrast, participants in the second stream of the SSWP are eligible for family reunification and may apply for permanent residency after ten years in the country, subject to the same conditions as other migrants.
When the SSWP was launched, the government set targets of admissions for each of the 14 industries and a cumulative target of 345 000 participants in the first five years of the programme, with expectations of a certain distribution. The first years of the programme were disrupted by the COVID‑19 pandemic. Testing had to be developed for each sector, adapting existing occupational standards to the needs of the new programme, and organising testing sessions in Japan and abroad. The first tier of SSWP was the first to be developed; the eligibility criteria and related testing for the second tier were more complex to develop and lower priority.
By the end of 2021, fewer than 50 000 specified skilled workers were in Japan, almost all of them transitioning from other statuses of residence rather than admitted from abroad as SSWs. Compared with the initial expectations in 2018 of the distribution of SSWs by sector was quite different; one sector, food and beverage manufacturing, exceeded initial expectations, while others lagged far behind.
Figure 4.12. The Specified Skilled Worker Programme has been successful in several sectors
Number of SSW workers by sector of employment, December 2022, and initial expectations by sector for April 2024
Note: Initial expectations were announced in 2018.
Source: Ministry of Justice, www.moj.go.jp/isa/policies/ssw/nyuukokukanri07_00215.html.
The SSWP nonetheless grew quickly – to more than 130 000 by the end of 2022 – and revealed itself to be a popular next step for TITP workers who finished their cycle of technical internship training, as well as foreigners completing vocational education in Japan. Vocational training institutions adapted to the new system as well, developing curricula to prepare students for the SSWP exams. VET providers in origin countries have been slower to develop curricula to meet the SSWP standards but have shown increased interest now that SSWP is better known.
A wealth of niche labour migration programmes
In addition to the main labour migration programmes above, Japan hosts participants in smaller migration programmes. Japan has a programme for nurses and certified care workers under economic partnership agreements (EPA); some programmes that target specific jobs such as housekeepers to diplomats or ski instructors; and several programmes under the National Strategic Special Zones (NSSZ).
Migrants participating in these smaller programmes enter and stay in Japan under the Designated Activities SoR (See Box 4.2). However, the Designated Activities SoR is not granted to labour migrants alone. Very different categories of migrants are granted this SoR, as for example, some categories of humanitarian migrants, working holiday makers, athletes, trainees, former international students searching for a job in Japan, etc.
Box 4.2. Designated Activities Status of Residence
The status of residence Designated Activities encompasses many small migration programmes, including Economic Partnership Agreements, programmes under the NSSZ, and exceptional migration programmes such as those in preparation for the 2020 Olympics.
Categories under Designated Activities are divided into “KOKUJI” (designated) and “non-KOKUJI” (not designated), depending on whether the Minister of Justice assigns a specific number to the activity. As of April 2023, there are 49 sub-categories under KOKUJI (Table 4.8). Many other activities are excluded, such as international students who continue their stay for job-hunting or business start-ups and those who are in the process of refugee recognition.
Table 4.8. Sub-categories (KOKUJI) of the Designated Activities status of residence
Note: As of April 2023.
Source: Status of residence “Designated Activities” KOKUJI list, Ministry of Justice, www.moj.go.jp/isa/content/001389019.pdf.
Newly established migration programmes often start under the Designated Activities SoR until a new SoR is created. For example, participants in the TITP were under a Designated Activities SoR until 2011 when the TITP SoR was created. Similarly, participants in the Points-Based system, established in 2012, were under the Designated Activities SoR until 2015 when the SoR Highly skilled Professional was introduced. Part of the dependents of Highly Skilled Professionals continue to be under the Designated Activities SoR.
There are more status changes into Designated Activities than new immigrants arriving in Japan under this SoR (Figure 4.13). This was already the case pre‑pandemic. However, the number of status changes into Designated Activities, as well as the stock of migrants under the status, increased greatly during the pandemic. This was due to the extraordinary measures to extend statuses of migrants who could not depart from Japan due to travel restrictions.
Figure 4.13. Stocks, inflows, and status changes into Designated Activities, 2011‑21
Source: Immigration Services Agency.
There is no available data on all sub-categories of the SoR. Different programmes are managed by different government actors and there is no integration of the data of all categories. In particular, almost two‑thirds of migrants entering Japan during the period from 2011 to 2019 under Designated Activities are participants in working holiday youth exchange programmes. Japan signed the first working holiday programme with Australia in 1980. Currently, Japan has agreements with 29 countries/regions. Another 10% come to Japan for internships. Migrants coming to Japan under Designated Activities typically stay only for a short period.
There is no detailed information on the subcategory of 82% of migrants in Japan under Designated Activities mid‑2022 (60.5% at the end of 2019). The status seems to be used to allow migrants who would not qualify for other SoR to remain in the country (see Chapter 5).
Table 4.9. Inflows and stocks, Designated Activities, sub-categories
Source: Immigration Services Agency Data.
Economic Partnership Agreements for nurses and care workers
Japan has concluded Economic Partnership Agreements (EPA) with Indonesia (2008), the Philippines (2009), and Viet Nam (2014) for accepting nurses and care workers. Under this framework, EPA candidates are trained in Japan for up to 3 years for nursing, and 4 years for care work, and are then eligible to pass the Japanese national qualifications exams. If successful, they have the option to stay in Japan indefinitely.
The requirements for candidates to participate in the programme differ slightly depending on the partner country (See Figure 4.14). Nevertheless, irrespective of the country of origin, the candidates must have a nursing license or at least two years of work experience for the nurse stream and have completed a relevant educational course for nurses in their country of origin.
Language training is a key feature of the EPA. Language training is provided partly in the country of origin and partly in Japan. In the initial agreements with Indonesia and the Philippines, six months of language training take place in the country of origin and six months in Japan. However, this proved to be insufficient, and language training has been increased to 12 months in the country of origin in the agreement with Viet Nam, followed by two and a half months of language training in Japan.12
EPA candidates are matched to hosting institutions in Japan. Hosting hospitals and care giving facilities post job offers that are then matched to the candidates’ preferences, and an employment contract is concluded between both parties. EPA candidates may not change employers during the training.
EPA candidates in the nursing stream may take the Japanese national qualification exam in their first year in the programme. If they fail, they are eligible to re‑take the exam annually in the next two years. In the meantime, they work as assistant nurses. EPA candidates in the care stream must do an apprenticeship in a Japanese facility and may only take the test in the fourth year of the programme.
EPA are managed by Japan International Corporation of Welfare Services (JICWELS) together with the governmental organisations of the partner country. EPA stipulate the conditions necessary to be a sending organisation. The sending organisation screens candidates and promotes the programme. In particular, they are responsible for providing accurate information about the programme, such as ensuring that potential candidates understand they need to pass the Japanese national certification exams to remain working in Japan. Sending organisations in the country-of-origin invoice JICWELS for real expenses.
Figure 4.14. Process of Accepting Candidates under EPA
Source: Employment Security Bureau, Ministry of Health, Labour and Welfare, Japan.
There are strict requirements for participating hosting facilities in Japan. Japanese organisations accepting EPA candidates must be approved in accordance with criteria stipulated by the MHLW. They need to prepare a training plan, provide financial support for the trainees’ accommodation, and pay trainees prevailing wages. Employers receive subsidies from the MHLW to participate in the EPA. Tuition for language, a tutor and a computer purchase are provided. Furthermore, EPA mandates that there is a designated staff member of the hosting facility who is responsible for EPA workers. The designated staff also receives a government allowance.
JICWELS provides language training in the country of origin, facilitates the job match between EPA candidates and hosting institutions, and oversees the integration of EPA candidates in Japan. JICWELS checks and visits hosting institutions regularly. JICWELS conducts surveys on working conditions of EPA candidates and reports periodically on their wages.13 It also offers a hotline for participants and yearly one on one meetings with candidates.
EPA candidates who pass the Japanese national certification exams may remain in Japan indefinitely under the same status of residence (Designated Activities) or may change to the SoR Nursing Care or Medical Services. Remaining under the initial status allows immigrants to continue using JICWELS support (hotline and individual meetings). Once EPA candidates pass the qualification tests, they have the right to sponsor accompanying family to Japan, irrespective of their SoR.
As of 2021, 1 587 nursing candidates and 6 454 care worker candidates have participated in the EPA, but only 529 and 1 762 candidates have passed the Japanese qualifications (Figure 4.15). Despite the training offered through the EPA, the candidates’ pass rates of Japanese national qualifications remain low. In 2021, only 20.9% of EPA candidates obtained the national qualification as nurses (compared with a pass rate of 90.4% for Japanese candidates) and 36.9% as care workers (compare with 72.3% for Japanese candidates).
Figure 4.15. EPA pass rates
Source: Trends in the number and pass rate of EPA candidates taking the national qualification exams, Ministry of Health, Labour and Welfare, Japan, www.mhlw.go.jp/content/000639886.pdf.
The number of job offers for care worker candidates has been on the rise since 2014 reflecting the increasing interest of employers in foreign care workers. However, EPA aim to enhance bilateral partnerships in economic activities, not to address labour shortages in Japan. Furthermore, the cost of the programmes is high, estimated at approximately JPY 600 000 per candidate regardless of the stream. The official guidelines provide the cost breakdown of the amount that hosting facilities need to pay JICWELS to hire an EPA candidate from each country of origin, including intermediary commission fees of job offers, accommodation expenses and language training costs. Cost estimations are also available from hosting facilities and municipalities. For example, Funabashi City reports that hosting two Viet Namese EPA candidates for two years costs JPY 1.2 million on top of their wages.
Hence, these programmes have no vocation to be scaled up; especially as alternatives have emerged. Among immigrants under a nursing care SoR at the end of 2022, only 14% had entered Japan through the EPA.
Figure 4.16. EPA supply and demand
Source: Trends in the job offers and accepted EPA candidates, Ministry of Health, Labour and Welfare, Japan National Strategic Special Zones.
Prior to strong market interest in recruiting care workers from abroad, it was necessary to subsidise the care worker channel to contribute to the broader success of the EPA. The question of cost sharing in developing channels for migration by healthcare workers – nurses and care workers, especially – is one faced by a number of OECD countries. Cost sharing is particularly important when destination-country-specific human-capital, such as language skills or certification for a regulated profession, is required. Candidates may not have the resources to invest in this specific destination-country capital, especially when migration channels are new and untested and outcomes uncertain or unknown. One approach to this is to implement partnerships with origin countries to train in both origin and destination and place in firms. Germany’s “Triple Win” recruitment of nurses is one example (Box 4.3). Private sector actors can perform similar roles, and indeed the introduction of the SSWP has led to some initiatives in Japan (see Chapter 6, Box 6.11).
Box 4.3. Public-Private International Co‑operation on training and placement of nurses
Germany’s Triple Win initiative
Since 2013, Germany’s development co‑operation agency, GIZ, has worked with the International Placement Services (ZAV) of the German public employment service and public employment agencies in partner countries to train and place nurses in German healthcare facilities. The programme operates in the Philippines, Indonesia, Viet Nam and India, among other origin countries. The public employment service in the origin countries identifies candidates trained as nurses. They receive German language training and bridging courses to prepare for the national examination in Germany. Upon arrival in Germany, they receive initial integration support and assistance in obtaining recognition. Employers cover the cost of GIZ services (about EUR 8 000) as well as the travel costs and cost of language and professional certification. More than 5 000 nurses have participated in the programme through 2023.
Source: Bundesagentur für Arbeit, http://www.arbeitsagentur.de/vor-ort/zav/projects-programs/health-and-care/triple-win.
Migration Programmes in National Strategic Special Zones.
Within the National Strategic Special Zones (NSSZ) (see Box 4.4), nine programmes currently target migration in three different ways: creating new migration channels; easing or simplifying migration procedures; and offering immigration advice to employers and migrants (see Table 4.10).
The NSSZs offer three migration channels for specific occupations: domestic workers (see Box 5.4), agricultural workers, and domestically trained hairdressers. The ISA does not publish the intake numbers for each of these channels. The programmes are small and represent an experimental phase for potentially larger programmes nationwide.
Several existing projects simplify migration procedures under the existing status of residence Business/Manager for entrepreneurs. The initiatives relax the requirement to have office space already secured upon arrival in Japan and make it easier for international students to transition to the Business/Manager SoR.
An additional programme offers bonus points in the PBS to migrants selected by firms sponsored by local governments.
Box 4.4. National Strategic Special Zones
The National Strategic Special Zones (NSSZ) are special designated regions in which regulatory reforms and other measures, such as tax incentives, are implemented through projects carried out jointly by the central government, local governments, and the private sector. The aim is to strengthen Japan’s economic competitiveness and foster economic growth.
NSSZs were established in 2013 as part of the third arrow – a growth strategy – of Abenomics. There are currently 10 NSSZs, encompassing 17 municipalities, and covering over 50% of GDP and 45% of the population. As of April 2020, over 100 reforms had been realised and over 350 projects were ongoing.
The establishment of a new special measure is done in several steps. First, anyone – local government or private actor – may file a proposal. A Special Zone Working Group, led by private‑sector experts, studies the proposal, and issues an opinion. The Special Zone Advisory Council, led by the Prime‑Minister, deliberates as necessary and obtains the consent of each competent minister. The special measure is then realised through a revision to the Special Zones Act and related laws and regulations.
NSSZs act as regional laboratories for regulatory change. Some reforms target strategic sectors (agriculture, education, health, tourism, etc.) and others are cross-sectoral, such as projects to reform employment practices or urban planning. Programmes are systematically evaluated and potentially scaled up nationwide.
Source: The website The National Strategic Special Zones (chisou.go.jp) provides an overview of the NSSZ projects in place.
Table 4.10. Labour migration in NSSZ projects
As of end of 2022
Source: National Strategic Special Zones Regulatory Reform Menu List, www.chisou.go.jp/tiiki/kokusentoc/menu/gaikokujinzai.html.
Recent labour migration policy developments led to overlapping migration channels
The labour migration policy developments of the last decade led to some overlap between migration channels. The creation of the SSWP introduced a clear overlap with the existing TITP. Despite the differences between the two programmes (in terms of skill requirements, eligible occupations and industries, conditions in the labour market), migrants from the TITP and SSWP are in many cases filling the same labour market needs. (See Chapter 6 for an in-depth review of the TITP and SSWP).
Beyond the SSWP, the recent multiplication of migration programmes has led to the overlap of migration channels and complexification of migration paths. Three indicative examples, described below, are the current migration channels for care workers, agricultural workers, and start-up founders.
Labour migration channels for care workers
There are four different statuses of residence for foreign care workers. The first channel is the Economic Partnership Agreement (EPA) for nurses and caregivers that Japan has with Indonesia, Philippines and Viet Nam. EPA candidates from these countries study and/or work in Japan while preparing to pass the national exams for certified care worker and a Japanese language exam (see section above).
The second channel is the Nursing Care status of residence created in 2016. This status of residence is meant for foreigners who have graduated from training facilities for certified care workers and would like to remain working in Japan after passing the national exams for certified care worker. Lastly, both the TITP and SSWP have a nursing care stream.14
These four different streams differ in the requirements in terms of certification, both of care giving skills and Japanese language, conditions of employment, and allowed duration of stay in Japan. A detailed comparison of the different streams is provided in Table 4.11.
Table 4.11. Labour migration channels for care givers
Source: Adapted from Ogawa (2022[3]), “The State and The Market: Acceptance of Migrant Care Workers Through Multiple Channels”, in Reiko Ogawa, Agents of Care Technology Transfer: Trends and Challenges of Migration Care Workers Across Borders, ERIA Research Project.
An important difference between these streams lies in who bears the cost of training. Most immigrants who work in Japan as care workers first studied in Japan to qualify for the national qualification exams. In this case, the cost is borne by the migrants themselves. Similarly, participants in the SSWP also need to have passed the qualification exams before being eligible for the programme and hence have no training support. They may be trained in origin countries at their own cost or by placement agencies who recover the costs from the employer. In contrast, the training cost of participants in the TITP is shifted to the employers in Japan, and even more so in the EPA, the costs are borne by Japanese employers and the Japanese Government.
Labour migration channels for agricultural workers
Another case of multiple channels is that of foreign agricultural workers. These may migrate to Japan under the TITP or the SSWP. Table 4 compares the two programmes.
Table 4.12. Labour migration channels for agricultural workers
Source: Ministry of Agriculture, Forestry and Fisheries.
Channels for start-up founders
Like other OECD countries, Japan has recently introduced several pathways to support start-ups (see section above). There are three different programmes: the “Foreign Entrepreneurship Activity Promotion Program”, the “Projects for Encouraging Foreign Entrepreneurs to Start Business” and measures introduced to help international students who graduate from a Japanese university to launch their start‑up.
The first two programmes are very similar. The “Foreign Entrepreneurship Activity Promotion Program” was created in 2015 in the context of the NSSZs, and as such is overseen by the Cabinet. The “Projects for Encouraging Foreign Entrepreneurs to Start Business” was introduced in 2018 by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Justice (MOJ). Migrants under the first programme stay in Japan under the Business Manager SoR for up to 6 months, whereas those under the second are eligible for Designated Activities for up to one year. In both cases, candidates are supported by local governments and expected to transition to the Business Manager SoR.
The measures to encourage the creation of start-ups by international graduates were introduced in 2020 by the Ministry of Education, Culture, Sports, Science and Technology (MEXT). International students having graduated from selected universities are eligible for a Designated Activities SoR for 2 years to launch their business. Furthermore, international students are also eligible for the other programmes. An international student after graduating in Japan may benefit from the “Foreign Entrepreneurship Activity Promotion Program” and then from the special measures for international students for a total duration of two years.
Table 4.13. Labour migration channels for start-up founders
Source: Promotion of acceptance of foreign talents, The Japan External Trade Organization, www.jetro.go.jp/invest/setting_up/section2/page12.html; Measures related to entrepreneurial activities by international students who graduated from Japanese universities, ISA, www.moj.go.jp/isa/publications/materials/nyuukokukanri07_00001.html.
References
[3] ERIA (ed.) (2022), The State and The Market: Acceptance of Migrant Care Workers Through Multiple Channels, ERIA Research Project Report FY2022.
[1] OECD (2023), International Migration Outlook 2023, OECD Publishing, Paris, https://doi.org/10.1787/b0f40584-en.
[2] OECD (2022), What are the risks and rewards of start-up visas?.
Annex 4.A. Additional tables
Annex Table 4.A.1. High skilled statuses of residence
Note: Statuses of residence considered under highly skilled statuses of residence.
Source: Immigration Services Agency.
Annex Table 4.A.2. The points-based system
1. For the categories of engineers and business managers, it is required that their annual income must be at least JPY 3 million.
2. Points allocation based on the age group:
Source: Immigration Services Agency, How does the scoring work? | Immigration Services Agency of Japan, www.isa.go.jp/en/publications/materials/newimmiact_3_evaluate_index.html.
Annex Table 4.A.3. Occupations eligible for each high-skilled status of residence, as listed in the certificate of eligibility
Note: List of occupations stated in each Certificate of Eligibility as eligible for each status of residence.
Source: Immigration Services Agency.
Notes
← 1. The SoR considered under high skilled labour migration in this review do not match exactly the SoR Japan classifies as Specialized and Technical Fields. First, this chapter includes the SoR Professor, which is the status of residence given to college professors but is not classified under Specialized and Technical Fields. Conversely, the chapter excludes the SoR Entertainers, which is the status of residence of actors, singers, dancers, or professional athletes. This SoR accounts for a large share of new entries under the Specialized and Technical Fields (41% in 2019) but is negligeable in the stock of migrants under this category in Japan (0.6% in 2019). Migrants typically stay in Japan only for short periods under this SoR. Moreover, the SoR corresponding to the new Specified Skilled Worker Programme (SSWP) is also excluded since this programme is covered in the next section as part of programmes for low-skill and medium-skill trades jobs.
← 2. Immigration Services Agency, 2021 Immigration Control and Residency Management.
← 3. Estimation for the 2017 entry cohort only.
← 4. Citizens of India are now also eligible to teach English and teaching of Chinese is also part of the visa.
← 5. Immigration Services Agency data.
← 6. Immigration Services Agency data.
← 7. Since applicants may be unfamiliar with occupation codes for their jobs, the Home Office links to the Office for National Statistics on-line tool, available for anyone, where candidates may input their job title and find the matching occupational code.
← 8. An exception is for migrants under a start-up visa, see section Like most OECD countries, Japan has specific migration tracks for researchers/professors and entrepreneurs.
← 9. A domestic worker may accompany the principal applicant under the PBS if he/she has been in employment for at least one year before arrival in Japan. The annual household income must be of at least 10 million yen and the worker must be paid at least 200 000 yen per month. The requirement for the one‑year minimum employment relationship may be waved under some conditions (e.g. the household has a child under 13 years of age). Furthermore, principal applicants under the PBS Business Management stream may sponsor two domestic workers if their annual household income exceeds 30 million yen.
← 10. For Business Managers, the duration may also be 4 or 6 months.
← 11. Initially 14 industries; reorganised into 12 industries in April 2022 with the merging of the three manufacturing industries (Machine Parts, Tooling, Industrial Machinery, Electric, Electronics, and Information Industries).
← 12. Furthermore, Indonesian and the Philippino candiates are screened after six months and are required to reach Japanese language level equivalent to N4/N5 of JLPT to continue in the programme. Pre‑screening appears important to identify candidates who are less adaptable or motivated.
← 13. 令和３年度 外国人看護師候補者受入れ施設巡回訪問実施結果について
← 14. The nursing care stream was added to the TITP in 2017.