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Increasing Demand for Foreign Skilled Workers in Japan's Construction Industry

In recent years, Japan's construction industry has been facing a significant talent shortage, prompting companies to increasingly look beyond domestic borders for skilled workers. A survey conducted by Human Resocia, a comprehensive human resources services company, sheds light on the current state and future trends of foreign talent demand in this sector. The survey, involving 345 professionals working in construction, revealed some alarming insights.

Key Insights from the Survey

1. Growing Anticipation of Workforce Shortages: Approximately 59.4% of the respondents predict that the shortage of construction management personnel will intensify over the next five years. This anticipation reflects a heightened awareness of the pressing workforce challenges facing the industry. Moreover, similar sentiments were expressed across technical fields, with over half of the respondents citing an expected increase in personnel shortages for BIM/CIM and design roles, indicating a widespread concern regarding future talent acquisition.

2. Positive Attitude Towards Employing Foreign Workers: The survey indicated a strong willingness to recruit foreign talent, with over 80% of participants in technical occupations, including BIM/CIM and design, expressing openness to hiring overseas personnel. Specifically, 85.7% of those in BIM/CIM roles are in favor of seeking international talent, demonstrating a promising shift towards more diverse hiring practices,

3. Support for Onboarding and Retention Crucial: As companies confront escalating labor challenges, the emphasis on not just recruiting but effectively integrating foreign workers into the workplace becomes increasingly essential. Continuous support for skill development and retention strategies must accompany the hiring process to ensure these professionals thrive long-term.

Context of Talent Shortage in Japan

Japan is projected to have over 2.3 million foreign workers by October 2024, showcasing a stark contrast to the declining domestic workforce. Over the past decade, employment in the construction sector has decreased by 300,000 workers while simultaneously aging. A notable increase in the number of foreign workers in construction roles—estimated at 180,000 by 2024—marks an 8.5-fold rise within ten years, illustrating the escalating reliance on international expertise to mitigate talent shortages.

Amidst this backdrop, the construction industry is now looking to elevate productivity through digital transformation (DX) initiatives while leveraging foreign skilled workers as a solution to ongoing labor shortages.

Industry Response

The construction labor landscape in Japan is witnessing a paradigm shift with increased employment of foreign professionals. As businesses adapt to these challenges, it is crucial for them to establish supportive environments that facilitate the full integration of foreign skilled workers into their teams.

Furthermore, as international workers make inroads into the technical sectors of construction—predominantly in white-collar roles—it becomes imperative for Japanese companies to refine their hiring strategies. The current survey findings indicate a modest proactive approach towards foreign employee recruitment, with only about 20% of respondents having already employed international talent. It underscores a critical need for companies to enhance their recruitment efforts and foster a welcoming work culture that promotes skills acquisition and job satisfaction.

In conclusion, the demand for skilled overseas talent is poised to grow as Japan confronts escalating workforce deficits in the construction industry. To navigate these challenges efficiently, businesses must prioritize both the hiring and integration processes, ensuring that foreign workers can contribute effectively to the economy while fostering a diverse, skilled labor force for the future.

Overview of Human Resocia

Human Resocia is a leading human resource service provider in Japan, specializing in staff dispatch, recruitment, and business contracting in various fields, including construction. Their services play a pivotal role in facilitating the hiring of foreign talent and addressing labor shortages in critical sectors. For more insights, visit Human Resocia.