Foreign residents accounted for 9.5 per cent of people in their 20s in Japan in 2025, more than double the share recorded a decade earlier, underscoring their growing importance to the country’s workforce and social security system as Japan’s population ages and shrinks.
An analysis of government data shows that the number of foreign residents in their 20s rose by around 680,000 over the past ten years to reach 1.22 million, while the number of Japanese nationals in the same age group fell by more than one million to 11.64 million.
The sharp contrast highlights the demographic pressures facing Japan and the increasingly central role played by younger foreign workers.
The trend is expected to accelerate after the government submitted a draft plan to an expert panel proposing the admission of up to 426,000 foreign workers over two years from fiscal 2027, aimed at easing chronic labor shortages across key sectors of the economy.
Regional data show particularly high concentrations of foreign residents in their 20s in parts of central and eastern Japan. Gunma recorded the highest proportion at 14.1 per cent, followed by Gifu and Ibaraki, while major urban centers including Tokyo, Osaka and Kyoto also exceeded the 10 per cent threshold.
Beyond the labor market, foreign residents are increasingly viewed as vital contributors to Japan’s social welfare and pension systems. Across all age groups, foreign nationals made up 3.0 per cent of Japan’s total population in 2025.
By nationality, Chinese residents formed the largest foreign community at around 900,000 people, followed by Vietnamese nationals at about 660,000, according to official figures. The data underline how immigration is reshaping Japan’s demographic profile and playing a growing role in sustaining its economy.
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