Japan continues to face challenges in integrating a foreign workforce, according to a recent survey of 1,000 company managers. Only 26.8 percent of companies currently employ foreign workers. Including those planning to consider it in the future, the total rises to just 32.5 percent. About two-thirds of respondents said they have no plans or remain undecided.
The survey, conducted by Begin Gyōsei Shoshi Jimusho, examined why companies hire foreign workers and the issues they face. Among the 268 companies currently employing foreign workers, 42.1 percent said they do so to address labor shortages. Another 38.4 percent cited the need for specialized skills and knowledge. Additionally, 36.5 percent said foreign hires support overseas expansion.
Despite these motivations, over 80 percent of companies expressed concerns. More than 30 percent cited language and cultural barriers. A similar share mentioned the complexity of residence status procedures. These results highlight operational and compliance challenges.
Knowledge of the residence status system remains limited. Only 32 percent of companies understood the system to some degree. Meanwhile, 23.8 percent admitted their understanding was inadequate. This gap makes legal compliance more difficult.
To address these issues, companies are taking measures. Common steps include implementing internal rules, consulting immigration lawyers, and checking employees’ residence status. However, 17.1 percent said they have taken no specific measures, showing ongoing vulnerabilities.
Experts say improving understanding of legal frameworks and supporting foreign workforce integration is crucial. Japan increasingly relies on foreign talent to fill labor gaps and provide specialized skills. Addressing these challenges will be essential for both companies and policymakers.
