World of HR: The majority of employers in Japan plan to hire foreign-born workers

Japan’s immigrant population hit a record high of 3.95 million this year, yet as its native-born population continues to fall, some Japanese aren’t ready for the country to diversify.

Japan has one of the oldest populations in the world (ranking at number four for people 65+ years of age), and as more people leave the workforce, the country has increasingly welcomed foreign workers to help fill the gaps. There are currently 2.3 million foreign-born workers in Japan, accounting for roughly 3.7% of the workforce, but some reports indicate that more workers are needed.

A recent survey from Japan’s Nikkei stock market index found that 98% of CEOs in the country want to hire more foreigners, and 99% plan to “actively” hire workers from overseas.

However, the country’s new far-right party, Sanseito, has encouraged a growing movement promoting the notion that immigration is detrimental to Japan’s culture, Bloomberg reported. The party and its supporters, which have expanded quickly since 2020, are driven in part by the rising cost of living and stagnant wages.

Employers are in a difficult position, and many immigrants say they have experienced discrimination at work. Some Sanseito supporters have protested outside Toyota’s headquarters in Toyota City which has an immigrant population from 76 countries. The company has turned to immigrants to accommodate expanded production because it couldn’t recruit enough local workers.

Some employers are trying to make it easier for foreign-born employees to integrate into Japanese society, offering furnished homes and language training, according to Kyodo News.

Minoru Hatanaka, president of Foodsworks Hisae Corp, who runs a sushi chain, opened a Japanese language school in 2023 to help foreign workers. His company began hiring international workers roughly 10 years ago and believes they could help boost Japan’s population, he told Asahi Shimbun.

“Unless it becomes the norm to see foreigners working for Japanese companies, Japan will be beaten by other countries.”