Japan’s foreign resident population has surpassed 3 million as the country continues to face a labor shortage

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Hassan Khan

Japan's foreign resident population has surpassed 3 million as the country continues to face a labor shortage.

In Japan, the number of foreign residents has surpassed 3 million for the first time, accounting for 2.66% of the total population, according to data released on Wednesday. This marks a significant increase of 11% from the previous year, with foreign nationals numbering 3.32 million as of January 1, 2023. The rise in foreign residents comes amid a decline in the Japanese citizen population, which fell by 861,237 to 121.6 million in 2023. This represents the 15th consecutive year of decline and the largest annual drop since the survey began in 1968. The total population of Japan, including both citizens and foreign residents, decreased by 0.42% to 124.9 million.

The largest groups of foreign residents in Japan are Vietnamese, followed by Chinese and Filipinos. Tokyo and Osaka saw the most significant increases in foreign populations, with foreigners making up nearly 4.7% of Tokyo’s population.

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Japan’s aging population and low fertility rate of 1.2 children per woman have intensified the need for foreign labor. To address this, the Japanese government has introduced measures such as a digital nomad visa and plans to double the cap on skilled worker visas to 800,000 over the next five years. Despite these efforts, Japan faces a projected shortage of nearly one million foreign workers by 2040 if economic growth targets are to be met. In response to the country’s birth crisis, which saw only 727,277 births last year, the government has also launched an official dating app to encourage marriage and family formation.

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