JAPAN | A temporary ban on SSW visas within the food service industry has been put in place in Japan amid concerns that its quota will run out.
Japan will no longer accept new foreign workers for the food service industry from April 13th, as the country is set to hit its quota for the sector well ahead of the proposed schedule.
The move was announced by the Japanese Government as a result of the high number of Type 1 Specified Skilled Worker visa holders in the industry, which reached approximately 46,000 by the end of February. This has exceeded earlier predictions, as the cap of 50,000 was expected to last through fiscal 2028.
First launched back in fiscal 2019 to combat severe domestic labour shortages, the Specified Skilled Worker program accepts non-Japanese nationals with ready-to-work expertise.
The Type 1 status has allowed a residency of up to five years in Japan. The more advanced Type 2 category does not have a residency limit and has allowed workers to bring their families to Japan as well.
The Japanese Government's intake quotas for each of the 19 fields covered by the Type 1 visa were put in place to avoid a negative impact on domestic employment opportunities throughout several industries.
The Immigration Services Agency said that this is the second suspension, following a ban on skilled service worker visas in the industrial machinery manufacturing sector in 2022.
The Japanese food service industry currently employs approximately four million workers in total and has relied on these skilled service worker visa holders for roughly one percent of its workforce, according to the agriculture ministry.
The sector’s labour shortage is severely concerning, with a jobs-to-applicants ratio of 3.2 in fiscal 2024, far exceeding the all-industry average of 1.3.
The industry’s hiring freeze is also expected to amplify competition for talent in the market. Although it has been suggested that this could lead to improved pay and working conditions for existing employees in the sector, there is also the concern that it would result in increased costs for business owners and operators. Industry leaders said this could potentially force businesses to downsize, shut down, or raise menu prices.
The Japanese Government outlined that this was not a permanent ban, and that it could be lifted if vacancies rise within the quota.
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