JAPAN DEBATES IMMIGRATION

Japan needs more immigrants, but they must be given a long-term perspective

By The Immigrant Times

Immigrants in Japan are needed to support an ageing population, but they are increasingly demanding to be treated as residents, not just as workers  (Photo: Emiko Jozuka/CNN)

August 2025: As Japan grapples with a shrinking population and mounting labour shortages, its immigration policies are undergoing a quiet but consequential transformation. In 2024 alone, the country lost nearly one million people - 1.6 million deaths against just 720,000 births. With one of the world’s fastest-ageing populations and a dwindling workforce, the government faces a stark reality: without foreign labour, entire sectors could collapse.

Once known for its insular stance on foreign labour, the country now finds itself at a crossroads - welcoming more migrants than ever before, while tightening the rules that govern their stay.

In 2025, Japan’s foreign resident population surpassed 3.76 million, accounting for just over three per cent of the national total. While modest by global standards, this marks a significant shift for a country long resistant to large-scale immigration. The top nationalities - Chinese (874,000), Vietnamese (635,000), South Korean (410,000), and Filipino (342,000) - reflect Japan’s strategic recruitment from neighbouring Asian economies, particularly through labour-focused visa programs. But, according to government statistics, there are also 212,000 Brazilians working and living in Japan.

Most of the immigrants fill critical gaps in healthcare, construction, agriculture, and hospitality sectors where domestic labour is scarce. But their work permits are mostly temporary and restrictive. Japan’s recent immigration reforms allow for more immigrants, but make it harder for foreigners to regard Japan as a permanent home.

But this expansion comes with caveats. Recent reforms have introduced stricter compliance checks for residency renewals, enhanced surveillance of overstayers, and a new electronic travel authorisation system (JESTA) set to launch by 2028. Even seemingly mundane processes, like converting a foreign driver’s license, now require a rigorous traffic test, signalling a broader push for integration through regulation.

While cities like Tokyo and Osaka are increasingly multicultural, rural areas remain wary of foreign presence. Public discourse often frames migrants as economic contributors, not future citizens. Younger generations are more open. Universities, start-ups, and creative industries are embracing diversity, and local governments are experimenting with multilingual services and cultural exchange programmes.

A survey by the Japan Centre for Economic Research and Nikkei

A number of prominent Japanese economists have recently come out in favour of increased immigration. In a survey by the Japan Centre for Economic Research (JCER) and the Nikkei economic newspaper, they say that an increase in foreign residents would be beneficial for Japanese citizens overall.

In an introduction to the survey, its authors say that expanding the intake of foreign workers is essential for the Japanese economy in addressing labour shortages. On the other hand, they caution that from a social security perspective, although the share of medical expenses attributable to foreign residents remained low, concerns had been raised about their relatively low compliance rate with insurance premium payments. Regulations on real estate purchases by foreigners and foreign firms have also emerged as a policy issue.

Details from the JCER survey, conducted in July 2025

• When asked whether the increase in foreign residents contributes to improving the average living standard of Japanese citizens, 76% of participants responded ‘strongly agree’ or ‘agree’.

• When asked whether the increase in foreign residents contributed to improving Japan’s fiscal balance, 66% of participants agreed.

• When asked whether it was desirable to strengthen regulations on real estate purchases by foreigners and foreign companies, 53% of participants strongly agreed or agreed, while some 40% did not offer an opinion.

During the interviews, the survey’s authors were also told that foreign workers should not be seen as competitors but as ‘complements’, filling gaps in sectors strained by ageing and depopulation. The survey’s participants also said that the economic benefits of increased immigration were clear, but integration remained a challenge. “As foreign residents become long-term contributors, policies must evolve from temporary labour solutions to inclusive social planning.”

In conclusion, the question is no longer whether Japan needs foreign residents - it’s whether it can offer them a future worth staying for. As the country reimagines its social contract, the welfare of Japanese citizens may well depend on how generously it extends that contract to others.

Further reading: Immigrants create Wealth |

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