Japan Retains Skilled Foreign Workers Amid Population Decline

The Organisation for Economic Co-operation and Development (OECD) and the National Institute of Population and Social Security Research (IPSS) released a summary of their review on Japan’s foreign worker acceptance policy. They found that about 40% of highly skilled foreign professionals, particularly those with university degrees, remain in Japan, which was evaluated as “high.” They suggested that to attract more talent, Japan should explain its unique employment practices to foreigners.
The OECD and IPSS have been analyzing government-published data and interviewing relevant parties since 2021 to compile the review. This is the 12th review by the OECD on a country’s foreign worker policy and the first comprehensive analysis of Japan’s foreign worker policy.

According to the review, among the foreign workers who entered Japan with residence permits for highly skilled professionals between 2011 and 2017, about 40% were still residing in Japan five years later. Considering that this group includes highly mobile foreigners, such as expatriates from overseas companies, the retention rate is “quite high.” The OECD states that “Japan has over 600,000 highly skilled professionals and their families residing in the country.”

Additionally, the Ministry of Internal Affairs and Communications released the population dynamics survey based on the Basic Resident Register. As of January 1, the number of Japanese citizens was 121,561,801, a decrease of 861,237 from the previous year. This marks the 15th consecutive year of decline, and the year-on-year decrease was the largest since the survey began in 1968.

On the other hand, the number of foreigners increased by 11.01% to a record high of 3,323,374, surpassing 3 million for the first time.