Japan halts new foreign worker intake for food services

Japan has stopped accepting new foreign workers in its food services sector from Monday (Apr 13), as the industry nears its quota under a skilled worker scheme.

The move affects hiring under the country’s specified skilled worker programme, which allows foreign nationals to work in selected industries facing labour shortages, including restaurants and food services.

Businesses warn the decision could worsen hiring challenges in an already tight labour market.

RESTAURANTS BRACE FOR IMPACT

Among those affected is Nawab, a chain restaurant serving Indian and Pakistani cuisine with five outlets in Tokyo. All 20 of its staff come from South Asia.

Its owner said Monday’s announcement has raised concerns about sustaining operations.

“I’m in trouble. To serve meals, we need professionals. Cooks are most important for our restaurant,” said Naritsuka Shakir Khan, president of Khan Enterprises, which runs the chain.

Other eateries face similar challenges. 

A South Korean restaurant in the capital, employing staff from South Korea, China and Nepal, said hiring was already tough even before the suspension. 

“It’s going to become more difficult to hire new people … And there are working hour restrictions (to hire students),” said its manager Lee Ki-Yeung.

QUOTA CLOSE TO BEING REACHED

Under Japan’s skilled worker programme, the food services industry can hire up to a total of about 50,000 foreign workers over a five-year period through fiscal year 2028. 

As of end-February, about 46,000 workers had already been employed under the scheme.

Authorities have cautioned the sector could hit its cap as early as next month. 

The programme, introduced in 2019, also covers other sectors facing labour shortages, such as agriculture, construction and nursing care, with caps set for each industry to manage foreign worker intake.

WIDER EFFECTS

Industry observers say the impact of the hiring freeze could extend beyond restaurants.

Yoko Kono, a manager at an agency that dispatches foreign workers from Myanmar to Japan, said demand from the food services sector has grown rapidly in recent years.

“We have (dispatched) in total about 1,000 (foreign workers). Most were to the nursing sector. Starting two years ago, demand increased in the restaurant business. Cafeterias in nursing homes are also considered restaurants,” she said.

In rural Japan, where populations are shrinking faster, businesses say the policy could hit harder due to a smaller labour pool. Industry players warned the restriction would worsen staffing challenges.

“It’s a headache. The government should not set a uniform restriction on the acceptable number in rural areas and cities, but should differentiate. To revitalise the rural areas, a bigger workforce is needed,” said Hiroki Arisu, president of Funasaka Shuzo, a restaurant operator based in Takayama, Gifu Prefecture. 

GROWING RELIANCE ON FOREIGN LABOUR

Japan has increasingly relied on foreign workers to sustain its economy as its population ages and birth rates decline.

Government data shows the number of foreign residents rose by nearly 10 per cent last year, crossing 4 million for the first time as of end-2025.

More than 60 per cent of these residents are part of the workforce, with the number of foreign workers hitting a record 2.57 million as of last October. 

Advocacy groups say the decision to cap numbers should have involved more consultation with affected sectors.

“There should have been discussions with the sectors’ labour organisations where upper limits were not appropriate. Business organisations will not remain silent,” said Ippei Torii, co-chair of the board at Solidarity Network with Migrants Japan, which supports migrants in the country.

The government is now reviewing its broader immigration policies. 

Source: CNA
-- Agencies