Why has Japan employed temporary foreign workers during labor shortages?

Japan has utilized temporary foreign workers primarily to address labor shortages in low-skilled job sectors during periods when the domestic workforce was insufficient to meet the demands of its vast economy.1

These shortages are a direct consequence of Japan's significant demographic shifts. Since the late 20th century, the country has experienced a stagnant population, a declining birth rate, and a rapidly aging society. As the working-age population (ages 15–64) has shrunk since the early 1990s, the country has faced persistent labor deficits across various sectors, including manufacturing, health care, and education.21

While these foreign workers have helped fill critical gaps in the labor market, these arrangements have historically been flexible, with the government suspending or adjusting such programs during economic downturns.1