Market Overview

The size of the foreign worker support services market (SSW worker support, TITP supervision and foreign worker job placements) is estimated at 246,700 million yen in FY2023, up by 34.8% from the preceding fiscal year.

The reduction in population, particularly among those in the working-age group, is becoming progressively more evident in Japan. To address labor shortages across industries, the government revised the foreign worker employment system to allow foreign nationals with certain level of skills and experience to work in the country. According to the Immigration Service Agency, the number of foreign residents increased to 3,410,992 (as of the end of December 2023). According to the Ministry of Health, Labour and Welfare, 2,048,675 foreign nationals are employed in Japan (as of the end of October 2023).

Increase in the number of Specified Skilled Worker and Technical Intern Training Program trainees is noteworthy in particular. This has led to a rise in the demand for SSW support by registered support organizations and Technical Intern Training Program trainee supervision. Furthermore, the need for foreign worker placement services is expanding among foreign nationals that are seeking new jobs or planning on changing jobs in Japan, as well as among companies hiring foreign nationals. The number of non-Japanese jobseekers are increasing in tandem with the increase of foreign residents in Japan, coupled with the situation where Japanese companies are having difficulties hiring workers.

Noteworthy Topics

Trends in Each Market

The market for SSW support services is experiencing an upward trend in conjunction with the rise in the number of SSW. The increase in SSW can be attributed to two factors: First, enterprises find it easier to hire foreign nationals, as individuals with SSW status possess Japanese language proficiency and the requisite occupational skills to commence work immediately without undergoing any specialized training; second, there is an advantage for SSW applicants (who aspire to work longer in Japan), as those who have successfully completed Technical Intern Training (residence status "TIT ii" and "TIT iii") will be qualified to transition their residence status to SSW.

The demand for supervision of the Technical Intern Training Program experienced a decline corresponding to the reduction in the number of TITP trainees between FY2020 and 2021, which was attributable to border restrictions imposed during the COVID-19 pandemic. Beginning in 2023, however, in tandem with the rise in the number of trainees, the market is showing signs of recovery once more.

Amidst the worker shortage and challenges in recruitment, the intention to hire non-Japanese highly skilled professionals (such as those possessing work visa of "Engineer/Specialist in Humanities/International Services") is increasing among enterprises. Under the circumstances, the demand for job placement services is experiencing an upward trend. Moreover, while the instances of enterprises hiring SSW are increasing, the heightened demand for services that connect SSW with implementing organizations is also fostering the expansion of the foreign worker job placement market.

Future Outlook

The size of the foreign worker support services market (as a total of SSW worker support, TITP supervision and foreign worker job placements) for FY2024 is projected to grow by 26.2% from the previous fiscal year to 311,260 million yen.
The number of foreign residents and foreign workers in Japan is anticipated to rise in the future amidst ongoing recruitment challenges and worker shortages. Going forward, growth is forecasted for all three sectors that make up the foreign worker support services market.

Research Outline