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Labor crisis forces companies to seek workers from abroad, but 85% enter through agencies and some pay up to 6,000 euros even before starting to work
The labor crisis in Japan is creating a scene that seems contradictory: the country urgently needs foreign workers, but a large part of these individuals still arrives with a bill to pay. Instead of traveling with a closed contract and their lives sorted, many enter through a system of intermediaries that charges high fees just to open the door.
According to the data, Japan closed 2025 with 2.57 million foreign workers, a historic record. However, this number alone does not account for the less obvious side: 85% arrive through agencies, and there are cases of charges that can reach 6,000 euros even before the worker sets foot in the country.
Why Japan became so dependent on foreign workers
The data indicates that the need to “import” workers arises from a difficult internal scenario, with low birth rates and vacancies that cannot be filled with local labor.
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The Ministry of Health, Labor and Welfare of Japan reported that the total number of employed foreigners reached 2.57 million at the end of 2025, an increase of 11.7% over the previous year and the 13th consecutive record.
In terms of pace, this helps to understand the weight of the labor crisis: in about a decade, the number of foreign workers has become almost three times larger.
The “toll” of agencies before employment begins
It is not the Japanese government that charges for someone to work, but a network of intermediary recruitment agencies that demands a commission even before the person arrives.
According to the cited study, 85% of foreign workers entered Japan through some type of intermediary. The most common fee ranges between 200,000 and 400,000 yen, equivalent to 1,200 to 2,400 euros. Even so, 13.2% reported having paid up to 6,000 euros just for the opportunity to get a job in Japan.
This is where the labor crisis gains a harsher layer: the country needs people, but many start off in debt or with high costs right from the beginning.
In which sectors are foreigners most visible
The data also shows where this workforce is concentrated. The manufacturing sector represents 24.7% of foreign workers, followed by services (15.2%) and wholesale and retail trade (13.3%).
By city, Tokyo, Aichi, and Osaka account for more than 43% of these workers. This indicates that it is not just about “a few vacancies,” but entire sectors and key regions that already rely on foreigners to maintain operations.
Labor conflicts and feeling of lack of support
The data also provides insights into who faced problems after arriving. Among the 10.9% who reported labor conflicts, 18.6% cited excessive fees charged by recruitment agencies. Additionally, 14.9% said they did not know who to turn to when they encountered difficulties.
On the companies’ side, the labor shortage appears as the dominant reason for hiring foreigners: 69% pointed to the labor crisis as the main reason, up from 64.8% the previous year.
TITP: an old system that became a target of criticism
Part of this friction is linked to the design of the migration system mentioned in the data. For over 30 years, the Technical Intern Training Program (TITP), launched in 1993, was presented as training for workers from developing countries, but in practice, it functioned as a means to obtain cheap labor.
According to the data, workers had little room for maneuver, with complaints that included exhaustive working hours, wage violations, and difficulties in changing sectors or jobs.
What changes with the Ikusei Shuro Seido expected for 2027
In June 2024, the Japanese Parliament approved the replacement of the TITP with the Ikusei Shuro Seido, set to take effect in June 2027. For the first time, the government officially recognizes that the goal is to train and retain foreign workers to address the shortage.
The data highlights two points of the new model:
- allow workers to change companies within the same sector, under certain conditions
- limit agency commissions to the equivalent of two months’ salary of the worker
In other words, the promise is to reduce the most abusive part of the process, but this is still on the horizon, and the labor crisis continues to pressure the country until then.
New entry routes and the attempt to attract different profiles
Japan has been opening new avenues for foreigners. In March 2024, the Specialized Skilled Worker (SSW) visa added new sectors, raising the total to 17.
The foundation also mentions the J-Find visa, for graduates from the 100 best universities in the world, allowing them to stay in Japan for up to two years in search of work or to develop a business project, without employer sponsorship. It is an attempt to attract highly qualified individuals, not just to fill vacancies.
Companies also have difficulties dealing with the system
The foundation emphasizes that Japanese companies also face problems: a survey by MHLW indicates that 30% of establishments reported difficulties, citing language and cultural barriers and complex procedures for managing residency situations.
In the end, the labor crisis is not just a lack of people. It is an entire system trying to adjust, with friction for both employers and newcomers.
It’s hard not to think about this: if Japan is in such need of foreign workers, why does the entry point still depend on such high fees charged by intermediaries?
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