The economy of Japan is one of the most developed in the world and the standard of living in this country is very high. Most of the GDP in Japan is produced by the services sector. Hence, the workforce is mainly employed in this sector, with less than a third of the Japanese workforce being employed in industry and only a bit more than 1% in agriculture in this country.
In this article, our company formation consultants in Japan explain a few important considerations related to the Japanese workforce. We can also provide assistance if you want to open a company in Japan.
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Foreign workers in Japan
The number of foreign employees exceeded one million for the first time in 2016, since the labor-impecunious country struggles to identify enough local workers.
This number represents a 20% increase from the previous year and a new record for the fourth consecutive year in the country.
Employees in Japan are hard working, educated, they speak English and they are highly educated. Many of them are experts in the IT industry.
The labor shortage is mainly felt in the construction industry, where the demand has increased rapidly before the 2020 Tokyo Olympics and for the reconstruction after the 2011 Great East Japan Earthquake and tsunami.
Foreign citizens who want to work in Japan have to obtain the appropriate work visa in this country. A working visa, though, does not allow by itself a foreign citizen to live or work in the country.
After entering Japan, the person has to obtain the appropriate “status of residence” which determines the extent of the person’s ability to live and work in the country. Our company registration advisors in Japan can offer more details on this matter.
Hiring employees in Japan
Business owners who intend to hire employees in Japan have to be aware of the rules and regulations related to hiring foreign citizens, as well as the labor market regulations like signing an employment contract (individual, fixed-term or collective). Our Japan company formation representatives can provide more information on these rules and regulations.
In Japan, employers with 10 or more employees must create work rules and file them with the Labor Standards Inspection Office.
These work rules should contain the terms and conditions of employment, such as the salary, working hours and breaks, and so on.
In case you need to know more about employment in Japan, please speak to our friendly company formation agents in Japan.