Japan’s foreign workforce surpasses 2.5 million for the first time, with Vietnam leading the market

According to Nikkei Asia, Japan’s foreign workforce reached a record 2,571,037 people in 2025, according to the latest data from the Ministry of Health, Labour, and Welfare, released last Friday. This is the first time since data collection began in 2008 that the number of foreign workers in Japan has surpassed the 2.5 million mark.

The foreign workforce in Japan grew by 11.7% last year, although the growth rate slightly declined by 0.7 percentage points compared to 2024. Nonetheless, it marks the third consecutive year of growth exceeding 10%.

Foreign workers now make up around 4% of the total workforce in Japan. By nationality, Vietnam has the largest number of foreign workers, with approximately 600,000 people, accounting for 23.6% of the foreign workforce.

This is followed by workers from China, with around 430,000, and the Philippines, with about 260,000. Meanwhile, workers from Myanmar saw the highest increase, rising by 42.5%, while workers from Indonesia and Sri Lanka also saw significant increases at 34.6% and 28.9%, respectively.

The Ministry of Health, Labour, and Welfare stated, "Although Japan faces competition from other destination countries, such as South Korea and Taiwan, some foreign workers still choose Japan due to factors like the country's overall safety and cultural appeal."

In terms of industries, the number of foreign workers has risen the most in the healthcare and welfare sector, including elderly care, with an increase of 25.6%. The hotel and restaurant sector followed with a 17.1% increase, and the construction sector grew by 16.1%.

However, in terms of total foreign workers, the manufacturing sector still employs the most foreign workers, with approximately 630,000 people.

The Japanese government is set to launch a new system for foreign workers called the "Employment for Skill Development Program," which will replace the current Technical Intern Training Program. The new programme is scheduled to begin in April 2027 and will accommodate up to 426,200 workers within two years.

This transition aims to address Japan’s labour shortage in 17 sectors, including hotels, restaurants, and elderly care.

Additionally, Japan’s Specified Skilled Worker programme seeks to attract more highly skilled workers. Together, both programmes will allow Japan to accommodate up to 1.23 million foreign workers.