News On Japan

Foreign Worker Freeze Hits Japan's Restaurant Industry

TOKYO - Japan's restaurant industry is facing growing uncertainty after the government suspended the acceptance of new foreign workers under the Specified Skilled Worker visa program for the food service sector, a move that is affecting businesses, language schools, and students who had hoped to build careers in Japan.

Among those feeling the impact is the popular chicken wing chain World Yama-chan, where foreign employees have become an essential part of daily operations.

Before opening hours at one of its restaurants, 23-year-old Poudel Pabin from Nepal carefully fries batch after batch of the chain's signature chicken wings.

"I usually fry them for about three and a half minutes, separate them so they don't stick together, and then fry them again," he said.

Pabin taught himself Japanese through books and YouTube before obtaining a work visa that allows full-time employment. He arrived in Japan at the age of 20 and joined World Yama-chan three years ago. Today, he works both in the kitchen and dining area and is considered one of the restaurant's key employees.

He admits mastering Japanese cooking techniques was not easy.

"At first it was difficult. I cut my fingers many times, but senior staff who had worked at Yama-chan for years taught me. I'm still not perfect," he said.

After gaining restaurant experience in Nepal and developing his cooking skills at a hotel restaurant, Pabin came to Japan with a long-term goal: opening a business in Nepal that combines a convenience store and a restaurant.

"I think taking care of customers is the most important thing. When I return to Nepal, I want to create a restaurant with the same atmosphere as Japan," he said.

At World Yama-chan, foreign nationals account for roughly half of all employees, including both full-time staff and part-time workers. Some locations are reportedly staffed by foreign workers at rates approaching 90%.

Tsuyoshi Sasano, deputy general manager of human resources and general affairs at SY Food, said foreign employees have become indispensable.

"They are succeeding in jobs that suit their abilities. Many foreign employees are even more capable than Japanese store managers. Overall, they are extremely talented people, and we hope their numbers continue to grow. They are very valuable human resources," Sasano said.

Many workers like Pabin are employed under the Specified Skilled Worker Type 1 visa, a residency status introduced in 2019 to address labor shortages. The program covers 16 industries, including food service, nursing care, agriculture and construction.

The food service sector has been one of the most popular categories under the program, with worker numbers rising rapidly since its introduction.

However, the sector has now reached a critical turning point.

Agriculture, Forestry and Fisheries Minister Norikazu Suzuki announced on April 14th that the number of Specified Skilled Worker Type 1 visa holders in the restaurant sector was expected to exceed the government's cap.

By the end of February, the number had reached approximately 46,000. With the ceiling of 50,000 workers expected to be reached, authorities halted the acceptance of new Type 1 workers into the restaurant industry in mid-April.

Sasano said the industry was surprised by the speed at which the limit was reached.

"It happened much sooner than expected. Since the ceiling has been reached, it is understandable, but we hope the government can respond flexibly, including raising the limit," he said.

The suspension comes as labor shortages continue to worsen. Last fiscal year, the restaurant industry recorded a record number of business failures linked to staffing shortages.

World Yama-chan has already begun reviewing working conditions and benefits in an effort to attract more Japanese employees.

The disruption is also being felt at language schools that prepare students for careers in Japan.

At ARMS Japanese Language School in Nagoya, around 500 students from countries including Nepal, Myanmar and Sri Lanka are studying Japanese. Approximately 30 students had been preparing to obtain Specified Skilled Worker qualifications for restaurant jobs.

Principal Yukihiko Isomura said students were forced to reconsider their plans after the suspension was announced.

"Some students hoped to work in restaurants after graduation under the specified skills program, but that path has disappeared. It's unfortunate because they can no longer pursue what they originally wanted to do," he said.

Among them is 24-year-old Aye Win Phyu from Myanmar, who arrived in Japan in October last year with hopes of entering the restaurant industry.

"Because restaurant-sector acceptance has stopped, my dream has changed," she said.

She is now considering employment at a food manufacturing plant while continuing to study. At the same time, she works part-time at a Japanese restaurant to learn customer service and cooking skills.

"I want to study hard now and eventually open a restaurant in my home country," she said.

Another student from Myanmar, 22-year-old Ei Mon Zaw, had already secured a position with a Japanese restaurant chain before arriving in Japan in April. The company had also lent her money for tuition expenses on the condition that she would work there after graduation.

However, with new restaurant-sector visas suspended, she can no longer take up that position.

"Since I can't work in restaurants now, I'm studying food manufacturing. If I can work in restaurants in the future, I want to switch back," she said.

She plans to work at a factory affiliated with the company while repaying her tuition loan and waiting for the restrictions to be lifted.

Industry groups are calling for an expansion of the visa quota, but experts argue that the current cap may not reflect actual labor market conditions.

Ayumi Minamida, a senior researcher at Mitsubishi UFJ Research and Consulting, said estimating labor demand in the restaurant industry is particularly difficult.

"It is not wrong in principle to estimate labor shortages and set a limit based on that figure, but accurately estimating demand in the restaurant sector has proven challenging," she said.

Minamida also warned that the policy could damage Japan's reputation among prospective workers overseas.

"My greatest concern is that students who studied with the goal of working in Japan's restaurant industry, and who invested their own money in that dream, suddenly find the door closed. Japan's image could suffer greatly. Even if we later ask people to come, they may no longer be willing to do so," she said.

As labor shortages continue across much of the Japanese economy, policymakers face increasing pressure to balance protecting domestic employment with securing the workforce needed to sustain economic activity. The sudden halt in restaurant-sector recruitment has highlighted the growing challenge of designing an immigration system that can respond quickly to changing labor demands while maintaining confidence among foreign workers seeking opportunities in Japan.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

Typhoon No. 27 (Choi-wan) is expected to rapidly intensify into a very strong storm as it moves north toward the Ogasawara Islands, bringing prolonged strong winds, heavy rain and waves exceeding six meters from October 5 to October 6, according to the latest forecast issued at 9 p.m. on October 2.

Nearly one year after the Osaka-Kansai Expo closed, the former exhibition grounds were opened to the media on October 2, revealing that around 90% of the pavilions and other facilities have been demolished, while the Forest of Tranquility remains a peaceful green space at the center of the site.

Time magazine has named Shoko Kawata, the 36-year-old mayor of Yawata in Kyoto Prefecture, among its 100 most influential emerging figures worldwide, recognizing her decision to become Japan's first sitting mayor to take maternity leave and highlighting a political career that has taken her from municipal administration to national politics and the leadership of a city of nearly 70,000 people.

Hokkaido's highest peak, Mount Asahidake in the Daisetsuzan mountain range, recorded its first snow cover of the season on October 2, with the area around the Asahidake Ropeway's Sugatami Station, at an elevation of approximately 1,600 meters, blanketed in snow.

Tokyo authorities carried out the capital's first emergency shooting of a captured bear in Hachioji after an adult Asiatic black bear was found caught in a trap near a residential area about 8 kilometers from Takao Station.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell on October 2, with the Nikkei 225 closing at 68,309, down 647 points, as investors took profits after the previous day’s sharp rally and turned cautious ahead of U.S. employment data, rising global bond yields and renewed concern over energy prices.

Pan Pacific International Holdings (PPIH), the operator of discount retail chain Don Quijote, has announced plans to acquire the Japanese operations of Toys R Us, the American-founded toy retail giant, taking over approximately 150 stores nationwide while maintaining employment for existing workers.

Japan's unemployment rate rose to 2.5% in August, up 0.1 percentage point from July, marking the first deterioration in five months, according to data released by the Ministry of Internal Affairs and Communications.

Tokyo stocks surged on October 1, with the Nikkei 225 closing at 68,957, up 2,203 points, as investors rushed back into artificial intelligence and semiconductor-related shares after Micron Technology’s strong earnings outlook reinforced confidence in global chip demand.

TOKYO - Tokyo stocks fell on September 29, with the Nikkei 225 closing at 65,481, down 396 points, as the September-end ex-dividend adjustment, U.S. stock weakness, higher bond yields and oil-related inflation concerns weighed on investor sentiment.

Osaka Prefecture's minimum wage will rise to 1,231 yen per hour in October, providing welcome relief to part-time workers struggling with higher living costs while placing growing financial pressure on businesses, some of which are responding by reducing employee hours and introducing robots that can perform certain tasks for the equivalent of just 94 yen an hour.

The average annual salary for employees at private-sector companies in Japan rose 1.9% to a record 4.87 million yen last year, marking the fifth consecutive annual increase, according to the National Tax Agency.

Toyota Motor's global vehicle sales fell 6.4% from a year earlier to 790,743 units in August, marking the second consecutive month of year-on-year declines as high gasoline prices linked to the Middle East crisis continued to weigh on demand for gasoline-powered vehicles in China.