Can labor shortages be offset without foreign workers? Approximately 2.04 million workers, with regular monthly pay of ¥292,000

The Ministry of Health, Labour and Welfare has published estimates based on its “2025 Survey on Employment of Foreign Nationals” for establishments with 5 or more employment insurance-covered employees that employ at least 1 foreign worker. The total number of foreign workers was approximately 2.04 million, an increase of approximately 220,000 from the previous year. By status of residence, “professional and technical fields” accounted for the largest share at 42.1%, up from 38.9% the previous year.

“Monthly scheduled cash earnings” for foreign regular workers were ¥292,400, up 6.4% year on year. By status of residence, pay was ¥306,500 for “professional and technical fields,” ¥254,100 for “specified skilled worker,” ¥213,500 for “technical intern training,” and ¥347,200 for “status-based categories,” indicating substantial differences by status.

Among establishments employing foreign workers, 68.2% cited “addressing or easing labor shortages” as the primary reason for hiring. A total of 56.2% of establishments expected foreign workers to perform at least as well as Japanese workers, while some also cited the aim of promoting internationalization and diversity.

The most common challenge in employing foreign workers was communication difficulties related to Japanese-language proficiency, cited by 46.2%. Other challenges included the complexity of administrative work, cited by approximately 23%, as well as problems arising from differences in culture and lifestyle and the cost of improving living environments.

Companies are expected not only to hire foreign workers but also to create environments in which they can work. The use of digital tools, including translation tools, digitized educational content and more efficient labor management, is being considered.