Foreign Talent in Demand: Expansion of Labour Jobs in Japan

WeXpats
2020/10/26

Labor jobs are an important component of an economy. Without it, sustaining progress may not be viable at all. A robust economy also opens a huge labor market. In Japan, there is a constant expansion with the labor market that appeals to foreign participation, providing an opportunity for employment.


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Labor Market of Japan

Japan is currently facing an imminent workforce shortage for the years to come. The pressure of Japan's aging population is one of the main reasons for this impending shortage. To deal with this, the Japanese government enacted laws that would expand foreign workers' entry in various industries. One of these would be removing visa restrictions that would allow foreigners to stay and work in Japan for up to 5 years.

Aside from the demands of highly skilled workers and professionals in Japan's top industries, the need for manual labor or blue-collar jobs is also on the rise. Sectors such as agriculture, construction, nursing, and hotel and restaurant are in dire need of blue-collar personnel in their payroll.

※ Ministry of Health, Labour and Welfare, "Ministry of Health, Labour and Welfare Service Guide 2019," p.14  

Opportunities for labor jobs in Japan

The Japanese government expects to welcome 500,000 foreign manual laborers to the country by the year 2025. But what are the industries that would need manual laborers? What are the prospective career paths for foreigners in Japan? Take a look at the leading sectors by which blue-collar jobs are abounding. Here are some of the sectors in Japan that would need blue-collar jobs:

※ Nikkei Asian Review, "Abe vows to bring in more foreign workers"

Agriculture

Japan’s agricultural sector requires manual labourers. For the past decades, the Japanese government made motions that would widen the opportunities for foreign labourers to enter the sector. This is the 9th Basic Plan for Employment Measures. The law regarded manual laborers to fall under the training program (TP). Workers are contracted in this arrangement through recruitment agencies. The usual positions that are held in this sector are the following:

※ FFTC Agricultural Policy Platform (FFTC-AP), "Unskilled Foreign Laborers in Japanese Food Processing Companies and Farms Under the Pretense of Training"

o  Farm Equipment operation

o  Farmworker (planter, fruit picker, etc.)

o  Livestock Care

o  Tractor operation

On average, farmers in Japan who own their own land earn an average of 4 million yen per year, but annual income varies per region. A person working on a farm will probably earn a little less than this but this depends on your contract type and extent of your work. 

※ Heikinnenshu, "Average annual income of farmers"

Construction

An ongoing infrastructure boom in Japan seems not to stop at any moment under Abe’s administration. This is enough to justify the ongoing demands for construction jobs in the country. Manual laborers and construction workers are in need along with highly skilled positions such as architects, engineers, and the like. In fact, 3 out of 4 construction companies in Japan support the entry of foreign workers in the construction industry. Here are the roles fulfilled by laborers in the construction sector:

※Reuters, Japan Inc supports bringing in low-skilled foreign labor: Reuters poll

o  Manual labor (covers machinery equipment operation and construction roles such as crafting, digging and fixing structures)

An average manual labourer in Japan can earn up to 620,000 yen per month based from a housing construction company located in Tokyo. Annual income ranges from 3.6 million yen to 13 million yen per year.

※ Heikinnenshu, "Ichijo construction company annual income"

Logistics/Transportation

The logistics industry covers an array of connections. From industrial level forwarding and transportation to daily necessities of transports, logistics can be found everywhere. Japan is in need of personnel tasked in these positions. This is due to the trend of younger Japanese to pursue corporate careers rather than posts such as driving in the logistics sector. Here are the main roles under the logistics sector:

o  Packaging & delivery

o  Taxi drivers

o  Truck drivers

Truck drivers in Japan earn around 4 million yen per year or an average of 250,00 yen to more than 300,000 yen per month. 

Taxi drivers earn an average salary of 300,000 yen to 410,000 yen per month or an average income of around 3.4 million yen per year.

※ Heikinnenshu, "Annual income of truck driver"
※ Heikinnenshu, "Individual taxi annual income"

Manufacturing

The manufacturing industry cannot be removed from the sectors that need a workforce. As one of Japan’s leading industries, there is an ongoing need for foreign workers in the assembly lines of automobile factories, electronic companies, and food processing plants, to name a few. Basically, workers in the manufacturing sector will be in charge of the following roles:

o  On-hand product assembly

o  Operation of factory equipment

o  Quality control

Salaries of workers in the manufacturing industry in Japan varies by age and the size of the company. It ranges from 2 million yen up to 5 million yen income per year. The annual income at large manufacturing companies like Toyota, Nissan and Suzuki range from 7 million yen to 7.5 million yen, but this depends on position and experience.

※ Heikinnenshu, "Manufacturing annual income"
​​​​​​​※ Heikinnenshu, "Annual income from factory work"

Restaurant/Food

The food service industry in Japan has and continues to gain popularity in the inherent changes in the dynamics of urbanization. Restaurant goers are ever more on the rise and in order to suffice the demands, food chain owners welcome a new line of workers to cater to orders. Not to mention the withstanding aspect of market diversification that is preempted by the growing tourism sector, the food service industry is pushing forth a diversified workforce as well. In restaurant service, manual labors may include roles such as:

o  Dishwashers

o  Kitchen Assistants

o  Waiters and Waitresses, especially those who speak another language

Mostly, these restaurant service jobs are part-time jobs. A person in the service industry earns an average of 2.5 million yen if they work full-time. Workers can do lengthier shifts upon agreement with the management of the employer, where they can earn more based on the number of hours.

※ Ministry of Health, Labor and Welfare, “2018 General Statistics on Annual Wage Survey

Additional information

Eligibility requirements may vary. But on the minimum, companies expect that applicants were able to complete at least the secondary level education. For language requirement, it is already provided under visa issuance that will be discussed further. 

As mentioned earlier, the Japanese government supports the entry of foreigners to fulfill labour jobs in the country. In fact, a new visa was enacted to specifically cater and provide eligibility for foreigners who wish to work in one of the industries above. This is the Specified Skills Visa. Under this plan, two subcategories of visas can be issued: V1 (for labor jobs) and V2 (for those that completed training in industry jobs). In this discussion, we will be focusing on V1.

For V1 issuance, eligibility requirements must be met. This includes the Japanese language proficiency test (JLPT). Applicants are required to acquire the N4 level in JLPT to be qualified. N4 is an equivalent of basic proficiency and understanding of the Japanese language. Moreover, V1 holders are eligible to stay in Japan for up to 5 years of residence and can be renewed for a limited time. Arrangement of visa application can be coordinated with the company for which the applicant intends to enter. This is called visa sponsorship. Through this, the company will help and provide the necessary documentation for the issuance of Certificate of Eligibility (COE).

※ Ministry of Foreign Affairs of Japan, "Specified Skilled Worker"

Summary

There is a huge demand for labour jobs in Japan and this discussion proves it. Spreading across various sectors and the projected demand for the years to come indicate opportunities for foreign workers. Just acquiring the necessary eligibility requirements as well as the necessary documentation will be the first step towards it.

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