Japan has introduced a new program for foreign employers to replace the Technical Intern Training Program, which was implemented over the last three decades, with a new training and employment system expected to be fully implemented within three years to tackle the labor shortage.
Overall, the new training and employment system is more flexible than the previous Technical Intern Training Program. It relaxes restrictions on foreign employees changing companies and eliminates the compulsory requirement for them to return to their home countries after three years.
Instead, it allows foreign workers who meet certain Japanese language and technical proficiency criteria to switch employers, and those with adequate technical abilities and meeting specific requirements can even apply to obtain permanent residency.
This initiative aims to address a labor shortage exacerbated by a 13-year consecutive decline in the Japanese population, with 16.1 percent of people aged over 75. This demographic trend has left around 70 percent of medium- and small-sized enterprises facing labor shortages.
"Women who previously had no jobs are now employed, and elderly workers continue to work, which helps to fill gaps in the labor market. However, sectors such as civil construction still face severe labor shortages," said Masaaki Shigehara, member of a council at General Affairs Department of Dai-ichi Life Group.
Experts believe the new system will enable foreign labor to more easily access industries experiencing critical labor shortages, including construction, nursing, agriculture, and car maintenance.
"In the car maintenance industry, the talent shortage issue could be alleviated if the new training and employment system develops as expected. This could significantly reduce the survival risks faced by enterprises. We hope this new system will be implemented successfully," said Ichi Yoshino, chairman of Japan Autobody Repair Work Association.
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Japan introduces new employment system for foreigners to tackle severe labor shortages