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Japan Plans New Residency System for Foreign Workers Starting 2027

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Kenji Govaers

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Japan is preparing for a major shift in how it welcomes and supports foreign workers. Beginning April 2027, the government will launch a brand-new residency qualification system called “Employment for Skill Development”, replacing the long-running Technical Intern Training Program.

This change is designed to create a fairer, more sustainable environment for foreign talent while also addressing Japan’s urgent labor shortages.

Why the Change?

The Technical Intern Training Program was introduced in 1993 with the goal of providing trainees from developing countries the chance to learn skills while working in Japan. However, the system has long been criticized. Many companies ended up using it as a way to secure cheap labor, leading to issues such as unpaid wages, long working hours, and restrictions on changing employers.

With neighboring countries like South Korea and Taiwan attracting more workers through flexible systems and competitive wages, Japan recognized the need for a serious reform to stay attractive for skilled foreign talent.

Key Features of the New System

The upcoming Employment for Skill Development system is designed to provide a clear pathway for growth while ensuring better working conditions for foreign nationals.

Here are some highlights:

  • Skill Training & Career Path
    Workers will spend about three years developing skills to reach the level of “Specified Skilled Worker Type 1” status, which allows up to five years of employment in Japan.
  • Job Transfer Flexibility
    Unlike the current intern system, workers will be able to change employers within the same industry, provided they meet certain conditions like passing skills and Japanese language tests. This is aimed at making workplaces more supportive and preventing exploitation.
  • Limits on Excessive Job Hopping
    To balance fairness with stability, there will be industry-specific waiting periods (1–2 years) before transfers are permitted, helping prevent over-competition for labor.
  • Focus on Rural Areas
    Japan faces severe labor shortages outside its major cities. Under the new system, rural companies will be allowed to accept up to three times more foreign trainees compared to standard limits. At the same time, stricter rules will prevent too much movement of workers into higher-paying urban areas.

What This Means for Foreign Workers

For people considering Japan as a place to work, these reforms are promising:

  • More opportunities to build long-term careers here.
  • A fairer system with clear training goals and recognition of skills.
  • Better workplace flexibility, since transfers will now be possible under certain conditions.

The government is still working on the details, with final rules expected by the end of this year after expert discussions. But one thing is clear: Japan is positioning itself to be more competitive in attracting foreign workers while ensuring they can grow and thrive in the country.

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