Japan is facing pressure to boost its appeal to foreign talent as it looks to attract up to 820,000 skilled workers over the next five years, doubling the previous cap, in a competition for talent with other countries facing labor shortages, reports Nikkei Asia. The government presented its proposal to expand the Specified Skilled Worker program beginning in fiscal 2024, which targets overseas workers with specialised skills and Japanese language ability, to a working group under the ruling Liberal Democratic Party. The new figure was approved without major pushback.

The 820,000 limit reflects Japan's expected labor shortage in a wide range of industries in the coming years, from construction and manufacturing to farming and nursing care. The expansion comes amid growing competition for talent worldwide. With countries like Australia and South Korea actively courting foreign labour, Japan will also need to make working there a more appealing option. Japan had capped the number of participants in the Specified Skilled Worker program at 345,000 for the five years following its launch in 2019. But only around 200,000 were participating in the framework as of November. The program has struggled to gain momentum in large part because of Covid-19.