Japan's Appeal to Foreign Workers Fades as Weak Yen and Rising Home Wages Dull Long-Term Prospects
- Xavi
- 23 hours ago
- 5 min read
Updated: 5 minutes ago
TOKYO — July 12, 2026 — Japan is more popular than ever with international tourists, but a newly released annual survey reveals a troubling trend for the country's long-term labor market: foreign residents are increasingly reluctant to commit to working in Japan for the long haul.
The 2026 iteration of Mynavi Global's Study of Employment Attitudes of Foreign Nationals in Japan, released on July 7, shows a sharp drop in the number of foreign residents who want to work in the country for five years or more. Only 61.6 percent of respondents said they wanted to stay for the long term — a drop of 14.7 percentage points from the previous year.
The survey, which collected 1,732 responses from foreign residents across Japan, points to a single dominant factor driving the shift: the persistently weak yen.
The Numbers: A Clear Shift in Sentiment
Intended Stay Duration | 2026 Survey | Change from 2025 |
More than 5 years | 61.6% | -14.7% |
2–5 years | 34.2% | +12.7% |
Within 1 year | 12.7% | +4.2% |
Source: Mynavi Global Study of Employment Attitudes of Foreign Nationals in Japan, 2026
While the majority of foreign residents are not looking to leave Japan immediately, a significantly increased proportion no longer see themselves staying long-term. The data suggests a growing sense of uncertainty about Japan's economic prospects and the real value of yen-based wages.
Why the Yen Matters: The Economic Reality
The weak yen is a double-edged sword. For tourists, it makes Japan a travel bargain. For foreign workers earning yen-based salaries, it erodes purchasing power and savings.
"Considering taxes and various expenses, the income gap between Japan and Vietnam is gradually narrowing. The weak yen has eroded Japan's relative wage competitiveness."— Yuzuriha Motoki, President of Mynavi Global
Key Economic Factors:
Weak Purchasing Power: The yen has fallen to the low ¥162-per-dollar range, the weakest in about 39 years and 6 months. This means everyday goods, including daily necessities, are now much more expensive for yen-based earners.
Stagnant Wages: Japanese salaries are not rising at the same pace as consumer prices.
Dwindling Savings: For foreign workers sending money home, the weak yen significantly reduces the value of their remittances.
Rising Home Country Wages: In major sending countries like Vietnam, wages have risen significantly. Vietnam's average monthly salary has increased about 1.4 times since 2019, reaching 8.4 million dong (about $320) last year. This narrows the income gap between Japan and home countries, making the economic incentive to work in Japan less compelling.
Demographic Divide: Not All Foreign Workers Are Leaving
The survey reveals significant differences by nationality and employment status.
By Nationality
Nationality | Change in "5+ years" response |
Vietnam | -18.4% (largest drop) |
Indonesia | -10.9% |
Myanmar | +6.4% |
Nepal | +4.7% |
China | +1.2% (slight increase) |
The drop was largest among workers from Vietnam, Japan's largest source of foreign labor (605,906 workers, or 23.6% of all foreign workers). In contrast, respondents from Myanmar and Nepal showed increased interest in staying long-term.
By Employment Status
The survey sample heavily skewed toward students and lower-paid workers:
41.1% of respondents were students
41.1% were working under Japan's Specified Skilled Worker programs — fields such as nursing, cleaning, manufacturing, construction, food service, and agriculture
These are not the high-paying roles that would quickly convince someone to stay in Japan for the long term, especially given current economic pressures. The survey likely does not capture the outlook of higher-paid professionals in finance, technology, or management.
Beyond the Survey: Government Policies Add to the Burden
Since the survey was conducted in January–February 2026, the government has introduced several proposals that are likely to make living in Japan more expensive and less attractive for foreign residents.
Recent Policy Changes:
Residency Status Renewal Fees Increased: The cost of renewing residency status has gone up.
Permanent Residency Fee Hike: The fee for permanent residency increased to ¥200,000.
Departure Tax Tripled: The departure tax was tripled to ¥3,000 for all travelers, including Japanese citizens.
Tighter Business Manager Visa Rules: The capital requirement for the Business Manager visa was raised sixfold, from ¥5 million to ¥30 million.
Stricter Japanese Language Requirements: New proposals would require an advanced level of Japanese for permanent residency.
Longer Naturalization Wait: The residency requirement for naturalization was doubled to 10 years.
"My dream is broken."— A 30-year-old Bangladeshi business owner in Tokyo, describing the impact of Japan's stricter visa rules
The Competition: South Korea Emerges as a Preferred Alternative
The survey also asked foreign residents about their interest in working in other countries. 83.7% of those surveyed expressed their willingness to work in a country other than Japan or their homeland.
Top Preferred Countries:
Rank | Country | Percentage |
1 | South Korea | 16.5% |
2 | Australia | 13.6% |
3 | China | 10.7% |
Why South Korea?
31.4% cited "the culture is attractive"
28.4% cited "higher income can be expected than in Japan"
The preference for South Korea highlights a growing perception that Japan's economic appeal is waning relative to its neighbors.
What This Means for Japan's Future
Japan faces a critical labor shortage. The Japan International Cooperation Agency (JICA) estimates that if Japan's economy grows 1.24% annually, the country will need 4.19 million foreign workers by 2030 and 6.88 million by 2040 to offset the decline in the working-age population.
Yet the current trends suggest that Japan is becoming less attractive to the very workers it needs.
"Policies to secure foreign labor stably are important, but macroeconomic conditions such as Japan's economic growth and wage levels are also key variables."— Yuzuriha Motoki, President of Mynavi Global
What This Means for Employers and Foreign Workers
For Employers:
Higher Turnover Risk: Companies relying on foreign labor may face increased attrition as workers opt to return home or move to other countries.
Need for Better Compensation: To retain talent, employers may need to offer more competitive wages and benefits.
Focus on Retention: Employers should consider investing in integration programs and career development to encourage long-term commitment.
For Foreign Workers:
Evaluate Your Options: Consider the long-term economic impact of working in Japan versus other countries.
Plan for Currency Fluctuations: The weak yen may affect your savings and remittances. Consider financial planning strategies.
Stay Informed: Keep up with policy changes that may affect your residency status and costs.
Methodology & Limitations
Mynavi Global collected 1,732 responses, sourcing participants through Mynavi Global users, affiliated Japanese language schools, and online communities of job-searching foreign residents in Japan.
Key Limitations:
The survey skews toward students and lower-paid workers
It may not reflect the views of higher-paid professionals in finance, management, or technology
The survey was conducted in January–February 2026, before several government policy changes were announced
Official Resources
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