Japan reported a record number of foreign residents in the country this year, despite rising anti-immigration sentiment amid ongoing demographic challenges. As of June 30, the Immigration Services Agency said 4.28 million foreigners were living in Japan, excluding short-term visitors. This represents an increase of 156,000 from the end of 2025 and accounts for approximately 3.5% of the nation’s total population based on government estimates.
The rise in foreign residents comes as Japan continues to face a shrinking and aging population, which has contributed to widespread labor shortages across various sectors. Toshihiro Menju, a visiting professor at Kansai University of International Studies, noted that the shortfall affects all levels of the workforce, from highly skilled professionals to service workers. “With Japan’s population shrinking by more than 900,000 a year, we have no choice but to rely on foreign workers,” Menju said. He added that technological advances such as artificial intelligence and robotics, along with increased workforce participation from women and older individuals, are insufficient to fully address labor demand.
Japanese businesses have called for more comprehensive government policies to support foreign residents amid these demographic pressures. However, the government has responded with stricter immigration rules. This month, new requirements for permanent residency came into effect, raising the standards for income and Japanese language proficiency. Prime Minister Sanae Takaichi, reflecting a "Japanese-first" stance, has urged tighter regulations amid growing public opposition to immigration.
The Sanseito party, known for its strong anti-immigration rhetoric and characterization of immigration as a “silent invasion,” achieved significant gains in the 2025 upper house election. On social media, unfounded claims have circulated suggesting that foreigners receive disproportionate welfare benefits and contribute to decreased public safety.
Menju suggested the recent regulatory changes might be affecting foreign resident growth, as the increase for the past year was about 300,000 compared to 360,000 the previous year. He warned that tougher residency criteria could discourage long-term stays, particularly given challenges such as a weak yen and relatively low wages.
Despite these obstacles, Menju projected that the number of foreign residents could reach 10 million by the 2040s as Japan continues to grapple with labor shortages. Meanwhile, the justice ministry reported a 4.8% decline in the number of illegal overstayers, down to approximately 65,000 as of July 1 compared to the start of the year.
