The Ministry of Health, Labour and Welfare (MHLW) reported that the number of foreign workers in Japan reached 2.3 million as of October 2024, representing a 12.4% year-over-year increase. The net increase of 250,000 workers marks the largest annual growth since data collection began in 2008, driven by intensified corporate recruitment amid labor shortages. Foreign workers now constitute 3.4% of Japan’s total workforce. By sector, healthcare and welfare services recorded the highest growth rate at 28.1%, followed by construction at 22.7%, and hospitality services at 16.9%. Manufacturing remains the largest employer with 590,000 foreign workers, followed by services (350,000) and wholesale/retail (290,000). Analysis by visa status reveals that “specialized and technical fields,” which includes manufacturing technicians and healthcare workers, became the leading category with 710,000 workers, up 20.6% year-over-year, surpassing the “residence status based on personal status” category (including permanent residents and spouses of Japanese nationals) for the first time. Notably, the Specified Skilled Worker visa program saw a 49.4% increase to 200,000 workers, maintaining consistent growth since its introduction in 2019.
Breaking down the bankruptcy figures by service category reveals widespread pressures across the sector: 81 home visit nursing care providers (up by 14), 56 day service and short-stay facilities (up by 15), 18 private nursing homes (up by 14), and 17 other providers (up by 7) filed for bankruptcy. Industry analysts note that smaller operators face particular challenges in managing rising costs, securing adequate staffing, and competing with larger providers. The concurrent trends of increasing demand and provider strain suggest the sector may be approaching an inflection point. While demographic trends continue to drive service needs, the market structure appears to be evolving, with some industry observers suggesting that consolidation and operational enhancement could help address the current challenges facing smaller providers.