Japan’s smaller companies are increasingly turning to foreign workers to fill roles that are becoming harder to hire for locally. More than half of the 2.3 million foreigners now working in Japan are employed by companies with fewer than 100 employees — a big shift from just a few years ago.
Why More Foreigners Are Joining Small Companies
Japan’s aging population means there simply aren’t enough workers to meet demand. That’s why many small and mid-sized businesses — from manufacturing to hospitality — are hiring globally.
In Saitama Prefecture, for instance, a manufacturer called Koganei Seiki Co. has brought in 40 skilled Vietnamese engineers out of a team of 300. These employees handle high-tech machinery and programming tasks that keep production moving.
“They’re incredibly talented and reliable,” said the company president. “They bring both skill and passion to the team.”
Hospitality Industry Welcomes Diverse Teams
Meanwhile, in Mie Prefecture, the long-running Todaya Ryokan has embraced diversity by hiring 37 staff members from 11 different countries, including China and Myanmar. Many help serve foreign guests thanks to their English fluency, while also learning Japanese hospitality culture.
“Our goal is always to make guests feel at home,” shared the inn’s owner. “That’s why we teach our team not just the language, but also the manners and traditions that make Japanese service special.”
Growing Numbers, Growing Responsibilities
Japan’s foreign workforce has more than tripled over the past decade, climbing from under 800,000 in 2014 to over 2.3 million in 2024.
However, not all workers enjoy the same experience. About 470,000 are technical trainees, and many have faced challenges such as unpaid wages or excessive hours. In 2023 alone, nearly 10,000 trainees went missing, according to immigration data.
New Visa System Coming by 2027
To improve working conditions, the government plans to phase out the current Technical Intern Training Program and replace it with a new “Training and Employment” visa by 2027.
The updated system will:
- Allow job changes after 1–2 years instead of 3.
- Provide clearer work rights for foreign employees.
- Encourage fair opportunities outside of big cities like Tokyo and Osaka.
Where Foreign Workers Are Concentrated
As of 2024, most foreign workers are still based in major urban areas:
- Tokyo – 585,000 workers
- Aichi – 229,000 workers
- Osaka – 174,000 workers
By contrast, rural areas such as Akita Prefecture have fewer than 4,000 foreign employees.
The Bigger Picture
Experts warn that Japan’s working-age population could shrink from 75 million in 2020 to just 55 million by 2050, meaning labor shortages will only grow.
That’s why more companies — large and small — are realizing how vital global workers are to Japan’s future.
What This Means for You
If you’re a foreign job seeker in Japan, the opportunities are expanding fast — especially in smaller companies that value loyalty, skill, and cultural exchange.
