Japan Labor Shortage Is Increasing Demand for Experienced Talent

Recent data indicates that Japanese companies are increasingly hiring experienced professionals to address labor shortages and operational needs. At the same time, Japan’s labor migration policies have expanded pathways for foreign workers with proven skills and experience. 

For Japanese speaking professionals across the world, including those working outside Japan, these developments reflect broader changes in both corporate hiring strategies and national workforce policy. 

Japanese Companies Are Increasing Mid-Career Hiring 

A survey conducted by the Japan Institute for Labour Policy and Training (JILPT) highlights a growing shift toward mid-career hiring among Japanese companies (link) 

• According to a Mynavi survey of 1,600 companies conducted in July 2025, mid-career recruitment is increasingly used as a strategy to secure experienced personnel. 

• 48.4% of companies stated that mid-career hiring is conducted to replenish “job ready talents”. 

• Additional drivers cited include employee resignations (32.4%) and business expansion needs (30.3%).  

• Workforce pressure is reflected in staffing conditions, where 45.8% of companies reported having insufficient full-time employees, compared to 27.0% reporting a surplus.  

Japan’s Labor Migration Policy Is Expanding 

Japan has also implemented policy reforms that expand the acceptance of foreign workers with verified skills and experience (link)(link). 

• In 2019, Japan introduced reforms that began to set aside the decades-old distinction in its migration regime between “low-skilled” work and highly skilled professional employment.  

• The policy reforms were designed to address demographic and labor pressures, with the government “hoping to bring in as many as 350,000 high-skilled foreign workers over five years to fill labor market gaps in a rapidly aging society.  

• One key mechanism supporting this shift is the Specified Skilled Worker (SSW) program, which has been expanded as the Specified Skilled Worker (SSW) Program has been steadily expanded against the backdrop of chronic labor shortages. 

• Policy updates continue to broaden the program’s scope, including expanding eligible industries under SSW (ii) in 2023 and adding additional sectors under SSW (i) in 2024, while also making pathways toward long-term settlement such as family accompaniment, unlimited renewal of residence status, and the possibility of permanent residence much clearer.  

Foreign Workers Are Becoming Essential to Japan’s Economy 

Japan’s demographic trends have significantly affected the country’s labor supply. According to Reuters reporting on labor market data, foreign workers are crucial to Japan's economy as they help to fill a severe labour shortage due to the rapid aging and plummeting birthrate. The scale of this shift is reflected in employment data, where the number of foreign workers in Japan more than quadrupled in the past 15 years to 2.05 million.  

Conclusion 

Survey data indicates that Japanese companies are increasingly recruiting experienced professionals to secure job ready talent, while national policy reforms have expanded pathways for foreign workers with verified skills. These developments highlight how Japan’s labor market is adapting to structural workforce shortages and increasing demand for skilled professionals. 

For international professionals with Japanese language capability, qualifications such as JLPT certification, professional experience, and cross border business exposure can align with the evolving needs of Japanese companies seeking high skilled workers. 

As organizations continue to expand internationally, the ability to operate in Japanese business environments while contributing specialized expertise is becoming increasingly valuable. KakehashiX aim to support this global talent connection by helping Japanese companies reach Japanese speaking professionals across international markets. Through KakehashiX, companies can access a wider pool of bilingual and culturally fluent professionals, while candidates can discover career opportunities with organizations seeking Japanese language capability, industry expertise, and internationally experienced talent. 

References 

• Japan’s Companies Seek Mid-Career Employees to Secure Job-Ready Talent 
  https://www.nippon.com/en/japan-data/h02557/ 

• Japan’s Labor Migration Reforms Breaking with the Past 
  https://www.migrationpolicy.org/article/japan-labor-migration-reforms-breaking-past 

• The Evolution of Japan's Foreign National Acceptance Policy 
  https://ippjapan.org/en_ichi/en/archives/1584 

• Japan faces shortage of almost one million foreign workers by 2040 
  https://www.reuters.com/markets/asia/japan-faces-shortage-almost-million-foreign-workers-2040-think-tank-says-2024-07-04/