In June 2024, Japan witnessed a significant shift in its labor policies with the passing of a revised Immigration Control Act centered on the “Training and Employment” system. This new framework aims to address challenges in the existing Technical Intern Training Program (TITP) and focuses on securing and nurturing foreign talent.
This article provides a clear explanation of the background and details of the Training and Employment system.
Background of the Legislative Revision
The revision was prompted by Japan’s increasingly severe labor shortage. Consider the following population projections for Japan:
- Population decline: The total population is decreasing by approximately 1 million people annually, with the working-age population expected to shrink by 12 million by 2040.
- Aging society: By 2100, 40% of the population is projected to be elderly.
In rural areas, foreign workers are becoming an essential part of the labor force. Amid intensifying global competition for talent, securing foreign workers has become critical to sustaining Japan’s economy, particularly in local regions.
Challenges in the Existing Technical Intern Training Program
The previous Technical Intern Training Program, which targeted foreign workers, faced the following issues:
Discrepancies between Objectives and Reality
- Purpose vs. reality: While the program aimed to contribute to international cooperation through skills transfer, in practice, it primarily functioned as a system to supplement domestic labor shortages.
- Difficult transitions: Certain occupations did not allow for smooth transitions from Technical Intern Training to Specified Skilled Worker (SSW) status, forcing many participants to return to their home countries after completing their internships.
- Limited scope of work: The program had narrowly defined categories, restricting the range of jobs participants could perform.
- Mandatory return: Upon completing their internships, participants were generally required to return to their home countries, preventing them from continuing their careers in Japan.
- Lack of Appeal to Foreign Workers
- Unclear career paths: Long-term career development and advancement opportunities in Japan were not evident, making the system unattractive.
- Restricted job mobility: A ban on job changes within the program led to inflexible employment practices and contributed to issues like worker disappearances.
- Operational issues: Problems such as inappropriate supervisory organizations and high intermediary fees were frequent.
- These challenges resulted in societal issues, including illegal employment and mistrust of the system.
Key Features of the New “Training and Employment” System
The Training and Employment system seeks to resolve the issues in the existing program and includes the following features:
1. Long-Term Talent Development
- Employment period: A standard three-year employment term aimed at developing workers to the level of Specified Skilled Worker (SSW) Level 1.
- Alignment with SSW fields: The program’s fields are aligned with those of the SSW system, expanding the scope of permissible work.
- Data-driven intake: Worker intake numbers are determined appropriately based on labor shortages and expert opinions.
2. Attractiveness to Foreign Workers
- Clear career paths: Stronger pathways to transition into the SSW system are established.
- Flexible career support: Career formation beyond the initial employer is supported, offering flexibility in job mobility.
- Career plans: Government agencies will design career development plans for participants.
- Job transfers: Transfers due to unavoidable circumstances are clarified and expanded, allowing voluntary transfers within the same occupational category.
3. Proper Management and Prevention of Misconduct
- Stricter standards: Eligibility criteria for accepting organizations and supervisory bodies are strengthened.
- Transparency in fees: Malpractice by sending organizations will be addressed, and intermediary fees will be made transparent.
- Support structure: A new Training and Employment Organization will be established to enhance support for foreign workers transitioning to the SSW system.
4. Support for Community Integration
- Language and cultural support: Assistance in improving Japanese language proficiency and establishing regional councils will help foreign workers integrate into local communities and foster coexistence.
Summary
This system lays the foundation for Japan to become a “preferred destination” in the global labor market. By enhancing its appeal to workers and creating a supportive and sustainable environment, Japan aims to evolve its foreign labor policies.
The Training and Employment system is expected not only to address labor shortages but also to contribute to revitalizing regional economies and elevating Japan’s position in the international community.
Translation provided by ChatGPT
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