Japan, South Korea, and Taiwan are intensifying efforts to attract foreign workers amid labor shortages and aging populations. Each country has adopted distinct strategies to address these challenges, with varying degrees of success.
Japan has had restrictive policies on low-skilled foreign labor. However, recent changes signal a shift toward greater openness. As of October 31, 2023, the number of foreign workers in Japan reached a record high of 2,048,675, marking a 12.4% year-on-year increase, Nikkei Asia reported, quoting the Ministry of Health, Labor and Welfare (MHLW).
According to the MHLW, foreign workers by visa status in Japan shows 595,904 workers on visas related to professional or technical fields (24.2% increase), 412,501 technical internship trainees (20.2% increase), and 71,676 on “specified activities” visas (2.3% decrease). By industry, manufacturing accounts for the largest share at 27%, followed by the service industry at 15.7% and the wholesale and retail sector at 12.9%.
South Korea has taken a more proactive approach. The country has significantly expanded its Employment Permit System, increasing the annual cap for low-skilled foreign workers from 50,000 in 2021 to 165,000 in 2024. According to reports, this program now includes workers in restaurants, hospitality and aquaculture industries.
South Korea has also focused on specific sectors, such as opening a training center for the shipbuilding industry in Indonesia. The country offers higher wages for low-skilled foreign workers than Japan and Taiwan, making it an increasingly attractive destination.
Taiwan has adopted a more targeted approach to foreign labor recruitment, particularly in high-tech industries. The country has implemented policies to attract and retain foreign talent, such as the “Gold Card” program launched in 2018, which offers a combination of work and residency permits to highly skilled foreign professionals. Peter Sayn, the founder of TeamFirst, a platform focused on both recruitment and market entry, emphasizes the need for a more comprehensive approach in Japan: “What Japan really needs is a stronger focus on creating an environment that not only attracts but also keeps high-skilled foreign talent,” he says.
