Solving Labor Shortage ( 労働力不足 ) in Japan’s Service Industry ( サービス 業 )

a japanese man walking in Japan with a hovering text about solving labor shortage in Japan's service industry

Japan has been dealing with a labor shortage (労働力不足) in the service industry (サービス業) for the past few years. This is a growing problem the government has yet to find a permanent solution. Driven by the aging population and the shifting labor dynamics, the country is turning to human resource dispatch companies to tap into the skills and expertise of foreign workers. 

One prominent source of professionals is the Philippines, which offers a diverse range of talents that can help mitigate Japan’s recruitment challenges.

Filipino workers are renowned talents worldwide. Their ability to speak a language that is foreign to them and how they can easily form strong cultural bonds are what make them pleasing to work with. But that’s not all that there is to them.

Learn in this blog how foreign workers (外国人労働者) can contribute to solving Japan’s labor shortage (労働力不足).

Why is There a Shortage of Labor in Japan?

Japan is currently facing a labor shortage due to the aging population and persistently low birth rates. As a result, hiring managers from Japan’s service industries are struggling to find enough skilled workers. To fill these gaps, more Japanese companies are now hiring foreign workers.

In this case, human resource dispatch companies have gained importance in Japan’s labor market.

What is Human Resource Dispatch Company?

人材派遣会社 helps connect your business with a wide range of skilled foreign workers from around the world, including the talented workforce from the Philippines.

How Filipino Skilled Workers Can Help Solve Japan’s Service Industry Labor Shortage

Japan can reduce labor shortages in the service industry by hiring Filipino workers through programs like the Specified Skilled Worker (SSW) and the Technical Intern Training Program (TITP). With added support such as language training and easier entry rules, these programs help provide a steady and skilled workforce for Japan’s service sector.

Let’s take a more detailed look at these programs.

Specified Skilled Worker (SSW):

Allows skilled workers from various sectors, including healthcare and hospitality, to work in Japan. The SSW program offers a pathway for Filipino workers to gain work experience and contribute to Japan’s economy.

Technical Intern Training Program (TITP):

Provides opportunities for foreign workers to gain practical skills and training while working in Japan. It allows for changes in job roles after a year or two and requires companies to offer support to the workers.

Why Filipino Skilled Workers Are Japan’s Best Bet at Maximizing Their Business’ Potential

Learn why filipino skilled workers are the best fit for your business in Japan.

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Reasons Why Filipino Workers Are Key to Solving Japan’s Growing Labor Shortage

In 2023, the Philippines sent out more than 2.6 million overseas Filipino workers (OFWs) to meet global labor demands. Surpassing the previous year’s estimated number of 1.96 million, with a significant increase of 9.8 percent.

Projections for years to come show that this number will remain strong, highlighting the Philippines’ ability to provide skilled workers to countries facing labor shortages, especially in Japan.

Here are more reasons why Japanese companies should consider working with Filipino skilled workers:

1. Young Filipino Workforce vs. Japan’s Aging Population

Approximately 30% of Japan’s population comprises people over 65 years old. In contrast, Filipinos aged 65 years and above only make up 5%.

Given this information, filipino skilled workers are in place to contribute vitality to Japan’s workforce. 

2. Filipino Skilled Workers Are Technically Trained and Globally Ready

Before working in Japan, Filipino skilled workers must show proof that they are qualified for their professions.

Over the years, Filipinos have earned a strong reputation for being highly trained and experienced. 

In a 2023 report from the Philippine Statistics Authority, the largest share of Filipino workers were in the following occupations:

  • Plant and Machine Operators and Assemblers (25.4%)
  • Technicians and Associate Professionals (17.4%)
  • Services and Sales Workers (15.4%)
  • Craft and Related Trades Workers (12.3%)
  • Elementary Occupations (12.2%)

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3.Supporting Service Industries with Specified Skilled Workforce

The Ministry of Foreign Affairs of Japan has listed key industries that require specified skilled workers. These 16 sectors are comprised of the following:

  • Nursing Care
  • ビル清掃管理
  • Manufacture of Industrial Products
  • 建設業界 
  • Shipbuilding & Machinery
  • Automobile, Repair, and Maintenance 
  • Aviation 
  • Accommodation
  • 農業 
  • Fishery and Aquaculture 
  • Manufacture of Food and Beverages 
  • Food Service 
  • Automobile Transportation Business 
  • Railway 
  • Forestry 
  • Wood Industry

Japan is especially concerned about the shortage of nurses, caregivers, and medical staff. These roles are essential for supporting its aging population.

Although these areas are a top priority, the need for skilled workers also affects many other industries. So, to help fill these gaps, Japan is turning to overseas talent.

Granted, the Philippines stands out as a reliable source of skilled workers ready to support Japan’s growing labor demands.

4. Adaptability and Flexibility

Filipino workers are known for their adaptability, strong work ethic, and friendly attitude—qualities that many Japanese employers highly value. Their communication skills also stand out. Most Filipinos speak both English and Filipino fluently, making them excellent at working in international environments.

While Japan prefers communication in Nihongo, this is not a major challenge for Filipino workers. Through the Japan-Philippines Economic Partnership Agreement (JPEPA), they undergo a 6-month intensive Japanese language training. For many Filipinos, learning Nihongo comes naturally, helping them adjust smoothly to Japanese workplaces.

結論

Japan’s labor shortage—especially in the service industry—calls for practical, long-term solutions. With its aging population and shrinking workforce, Japan must look beyond its borders for skilled, dependable workers. Filipino workers offer exactly what Japan needs: technical expertise, youth, adaptability, and a willingness to integrate into Japanese culture and language.

Through government-backed programs like the SSW and TITP, and with the help of trusted human resource dispatch companies like Greatways Manpower International, Japanese businesses can easily connect with qualified Filipino talent.

How Greatways Offers a Collaborative Solution
to Japan’s Skilled Labor Crisis

This collaboration between Japanese businesses and specialized skilled workers presents a win-win solution to Japan’s labor shortages. Ultimately, it reflects the potential for international cooperation and the benefits of a diverse and inclusive workforce. So, if you’re all fired up and ready, we invite you to partner with us! 

At Greatways Manpower International, Inc., we want nothing more than to build great partnerships in Japan.

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