Japan Job Market Points to Shift on Immigration

Japan is hoping to tackle a worsening manpower shortage in its transportation industry by licensing up to 24,500 foreign taxi, bus, and truck drivers by fiscal year 2028.While public acceptance of large-scale immigration has been slow to develop in Japan, many sectors facing acute labor shortages—such as construction, manufacturing, agriculture, and elder care—are struggling to fill roles amid a dearth of interest among younger Japanese.

The shift in immigration policies comes amid mounting demographic challenges.People over 65 account for about 30 percent of the 'super-aged' society. Compounding the issue is one of the world's lowest fertility rates, which last year dipped to just 1.2 births expected per woman—a figure well below the replacement rate of 2.1.As a result, Japan has been forced to turn to immigration in hopes it can help offset the shrinking labor pool.

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