Choosing Japan: The Benefits for Foreign Software Engineers

Is Japan a country I should move to as an Information Technology professional? Is it a good destination for software developers?

If you had asked these questions 20 years back, the answer was a simple “No.” In those days and earlier, Japan’s reputation was only in manufacturing and hardware domains. Therefore, it was natural that people working in those areas were respected. IT jobs in Japan were supporting jobs without much respect.

But things change!!!

Moreover, foreign IT professionals ask these questions because, on the one hand, Japan has an aura of being an alluring place, but on the other hand, people get worried reading and hearing about the Japanese working culture, overtime working, and all.

But times change!!!

This article is to throw a realistic light on working in Japan as a software developer or other IT professional as a foreigner. This realistic picture is crucial because the negativity we find in the media is often exaggerated.

Who Am I?

If I write something so detailed, I must introduce myself so that readers can analyze if I am the right person to talk about information technology and Japan.

Well, I am an ex-pat who came to Japan long ago for a 2-month IT project. Somehow, those two months extended to almost two decades. Since coming to Japan and ultimately settling here for good, I moved out of Japan a couple of times. Once to Germany & Switzerland and once to India – but somehow, Japan kept pulling me like a magnet.

Starting in Japan as an IT consultant, I moved to business development in the information technology space and then headed Japan operations for a multinational IT company before moving out to start my own business in Japan.

I have loved every moment in Japan, and the 360-degree experience in the software industry of Japan has given me a good insight into Japan and its IT industry.

Job Vs. Career: Japan for a Software Engineer

A job fills our survival needs, but a career is for life. A job is only a step to building a career; hence, the criteria to go for a job are not good for planning for the career.

The above differentiation is very important before we decide to take up a job in Japan.

So, before we dive deep into the reasons and the ground realities, let me start by saying that Japan is a great place for foreign software professionals looking for a great career.

(You may also like to read the guide to finding a software job in Japan.)

In this article, I will talk about the reasons behind believing in Japan’s great present and future potential for software developers, the opportunities for software developers and other IT professionals, and future growth prospects.

However, there is nothing absolute, and there are always Pros and Cons, so we will also look at the pros and cons of working as a software developer in Japan, considering the type of information technology roles.

So, first, let’s see the advantages foreigners have in working in Japan’s tech industry.

Being Where the Future of Opportunities Lies

It is always about the right timing, considering the future potential, and investing in that.

Let me take the example of China. This example is nothing to do with foreigners working as IT professionals in Japan. However, it backs up that identifying the potential pays well.

China became the world factory for manufacturing as companies found great opportunities to save costs. The private corporations headed that way at the right time made some handsome profits and grew in size. Those companies also got the advantage of the expected huge consumer market.

It was all about being at the right place and time, and Japan is that place for software professionals now. Let’s see why.

Growing Tech and Information Technology Sector in Japan

Japan’s tech industry is growing rapidly. However, the field has a significant talent shortage, particularly in AI, data science, and cybersecurity sectors.

This high demand for IT professionals means plenty of job opportunities and potentially better compensation packages for foreign software developers and other IT professionals.

The talent shortage also leads many companies to expedite the visa process. This makes it very easy for foreign IT professionals to get work permits. You may like to read about the engineer visa in Japan.

Before moving on to the software industry, let us look at some macroscopic data about the changing industrial structure from the Statistics Bureau of Japan. The following table highlights the primary, secondary, and tertiary industry changes. These changes are in terms of the employment of people. They also reflect their share in Japan’s overall GDP.

Employment and GDP Share of Japanese Industry Segments

Employment	Primary Industry	Secondary Industry	Tertiary Industry
Percentage of people employed in 1970	19.3%	34.1%	46.6%
Percentage of people employed in 2015	4.0%	25.0%	71.0%
Percentage share of GDP in 1970	5.9%	43.1%	50.9%
Percentage share of GDP in 1970	1.0%	25.9%	73.1%

Please note that the definitions of primary, secondary, and tertiary industries of Japan are as follows:

• Primary industries: Agriculture, Forestry, and Fisheries.　　　
• Secondary industries: Mining, Quarrying, Construction, and Manufacturing.　　　
• Tertiary industries: All others, including tech and information technology industries.

It is evident that the tertiary industry, including the software industry, continuously creates more jobs. Moreover, its share of the GDP has been growing fast.

However, it is not only about more demand for IT professionals in Japan because of the increasing share of tertiary industry, but also increasing demand for software professionals in all the other industries.

This increasing demand is because the role of software and information technology is exponentially increasing in every industry – be it agriculture, fisheries, or manufacturing.

There were days when cars were just mechanical with no software at all. You must manually roll up or down the windows, as no embedded software was installed. However, it is estimated that 80 to 90% of the future development of automobiles will not be mechanical but software-based.

So, the above factors, one Japan-specific and the other general drive huge demand for software jobs in Japan.

But then, where is the supply?  

Japan – The Land of Opportunities for IT Professionals

While the information technology sector has grown, hiring in Japan has always been challenging. Some of the main factors are as follows:

• Demand-Supply gap for IT Jobs and IT professionals in Japan
• Declining and aging population
• The increasing number of tech companies
• Aspiration of progressive software companies to go global by adding employee diversity
• Two extremes – Employment for life or too often job hopping

Let’s have a look at some important statistics:

Population Statistics and Takeaways – 2022

Japan’s total population in 2022 was 124.63 million, per the Statistics Bureau of Japan. However, digging deeper into the following objective will provide some interesting insights:

1. What is the working-age population?
2. What is the population available if you wish to hire a 6-7years, experienced person
3. What does the future look like?

To have the answers to the above questions, let’s break down Japan’s population into different age groups. Here is what we get:

Age Group	Population
Up to 24 years old	26.12 million
Up to 29 years old	32.51 million
Above 60 years old	43.69 million
Between 29 and 60 years old	54.82 million
Between 29 to 60 years old	48.43 million

Together with the above age group statistics, the following data points are also critical to analyzing the labor force market situation in Japan:

• The total population of men is 60.68%
• The total population of women is 63.95 million
• The percentage of people who go to higher education is 70%
• Women’s employment rate is 53%

You may ask why this data is important for job opportunities for information technology professionals in Japan. However, please note that even though this article is about software jobs in Japan, these general statistics can help us understand the overall labor market, which also affects software jobs.

Analysis of Data

• The total number of employable people in the age group of 24 to 60 years old is just 54.82 million.
• With 70% going for higher education, the above number of employable people goes down to 38.37 million with higher education. As women make up 51.31% of the population and women’s employment rate is 53%, the percentage of such people comes down to 29.12 million.
• If a company is looking for people with at least 6-7 years of experience, such people are only 48.43 million. Out of this, such experienced people with higher education are just 33.90 million. Considering the above statistics about women’s population, this number goes down to 25.73 million.
• Young people under the age group are just 26.12 million. As per the past trend, this population may only have 18.28 million people with higher education. This population will be available for jobs in the coming days. Include the fact that the population is continuously declining, and we get the picture of rising opportunities for foreigners for jobs in Japan.

Note: It is hard to accurately calculate the above numbers because even the male population in the above age groups will not be employable because of health and other reasons.

Also, the above numbers represent the overall labor market, not just software jobs.

However, this representative data makes it quite clear that Japan will have continuously increasing job opportunities for foreign software talent.

Japan’s information technology (IT) industry is experiencing robust growth. It is expected that by 2030, there could be a deficit of between 420,000 and 790,000 IT engineers. Concurrently, the trend of hiring international IT professionals is on a significant upswing within the country’s corporate landscape.

Lowest Unemployment Rate and Labor Market Insecurity – 2023

The following table compares the unemployment rate and labor market insecurity of Japan among the top 15 economies of the world (Source: OECD)

Countries	GDP (US$ Trillion)	Unemployment Rate	Labor Market Insecurity
USA	22.99	4.40%	3.70%
China	17.73	2.9% (undefined)	5.80%
Japan	4.94	3.00%	1.60%
Germany	4,22	3.80%	1.90%
UK	3.19	4.50%	2.70%
India	3.17	3.70%	3.60%
France	2.93	9.20%	4.40%
Italy	2.1	11.40%	10.70%
Canada	1.99	6.40%	3.80%
S. Korea	1.77	3.80%	2.40%
Brazil	1.61	13.00%	6.60%
Australia	1.54	5.80%	3.80%
Spain	1.42	17.30%	17.50%
Mexico	1.29	3.60%	4.00%
Indonesia	1.19	5.60%	9.20%

We can clearly see that the unemployment rate and job insecurity are the lowest in Japan. It means that the availability of employable people is the lowest, and those employed have the highest job security in Japan.

Moreover, the job market for IT and communications engineers is notably buoyant, with an impressive 2.28 jobs available per applicant in 2019, surpassing the average job-to-applicant ratio of 1.48 across all sectors.

Each year, the presence of foreign professionals in Japan grows. In 2019, the nation hosted 1.66 million foreign workers, 67,540 contributing their skills to the information and communication technology sector.

Compare the above numbers with the USA, where Jobvite 2019 Recruiting Benchmark Report, The average number of applicants per job opening was 29 in 2018.

Please note that this data from the USA is not specific to software jobs; hence, please compare it with Japan’s overall data of a 1.48 job-to-applicant ratio.

Increasing Demand for “Foreign” Software Talent

As we have seen above, a huge demand exists for software developers and other IT professionals in Japan.

However, another reason is Japan’s huge opportunities and tremendous potential for foreign software engineers. And that reason is Japanese software companies’ hunger to increase diversity in the workforce.

Japan has been comparatively a very close country compared to countries like the USA.

Following Japanese work practices and culture was always the most important objective for Japanese companies. However, unlike the manufacturing industry, the lack of diversity prevented Japanese software companies from being competitive globally.

Many modern Japanese tech companies, especially successful Japanese startups, seek to diversify their workforce to be more competitive globally.

Diversity brings a range of perspectives, encouraging innovation and creativity – key factors for success in the software industry. Foreign IT professionals, therefore, have the opportunity to play an integral role in driving the country’s tech industry forward.

This need for diversity further increases the career prospects for foreign information technology professionals in Japan.

What Japan Offers Apart from Career Opportunities?

A career is just a part of life; we need many other things. Let’s do a brainstorming about the other factors:

• Money (of course, part of the career, but still)
• Opportunity to make the professional profile stronger
• Opportunity to make the personal profile stronger
• Leisure and Entertainment
• Convenience
• Safety

Money: IT salaries in Japan

The salaries for software professionals are competitive in Japan. Please note that the salaries may be lower than in the US and some European countries.

However, foreign software professionals typically earn more than Japanese software engineers in Japan. Moreover, salaries are continuously increasing. And, with the increasing talent shortage, the future growth prospects for earnings are more promising than in many other countries.

Please check our detailed guide for IT salaries in Japan.

Opportunity to make the professional profile stronger

Working in Japan can help software engineers professionally and strengthen their professional profiles.

One of the core benefits of working in a foreign country like Japan is exposure to a different culture.

Japan’s unique blend of tradition and modernity provides an enriching personal and professional experience. This involves adapting to the new work culture and understanding different business etiquette and communication styles.

The way companies look for diversity, it is equally important for employees to add diversity to their profile. Diversity always adds new dimensions to experiences, adding to knowledge and opening the minds to new ways and new possibilities.

Today’s world is a global village. For future growth as leaders of a diverse workforce, the experience of various cultures is always crucial. One needs to have diversity to be able to handle diversity; otherwise, it is very easy to fall prey to the Peter Principle in the career journey.

Japanese work culture is a sharp contrast to the work cultures of most other countries. The exposure to a very different work culture has also created many successful global mega-corporations and surely adds much-needed strength of diversity to the professional profile. This exposure can broaden one’s perspectives and enhance adaptability – a key trait in the ever-evolving tech industry.

And it’s not just limited to the professional profile; the experience of dealing with different cultures, people, and mindsets helps personally also.

Leisure and Entertainment

Japan offers a rich tapestry of leisure and entertainment options, ensuring ample opportunities for foreigners to indulge in captivating activities during their free time.

Renowned for its unique blend of traditional and modern culture, the country presents an array of captivating experiences.

From exploring ancient temples and serene gardens to immersing oneself in the vibrant nightlife hustle and bustle of urban centers like Tokyo and Osaka, Japan caters to diverse interests.

Moreover, despite being a small country, Japan has many fascinating tourist spots for people who like to explore new places.

Additionally, Japan boasts a thriving entertainment industry, including anime, manga, and video games, attracting enthusiasts from around the globe.

You can also attend lively festivals, savor delectable cuisine, soak in rejuvenating hot springs, or witness exhilarating sports like sumo wrestling.

Whether seeking cultural immersion, outdoor adventures, or innovative technological marvels, Japan offers an extraordinary range of options to ensure an unforgettable leisure experience for every visitor. You may also like to read the article about what the Japanese do for relaxation and entertainment.

Convenience

Japan is renowned for its unparalleled convenience, making it an ideal destination for foreigners considering working there.

The Japanese emphasis on efficiency and attention to detail permeates every aspect of daily life.

From a robust public transportation system that is punctual, reliable, and extensive to the abundance of convenience stores that operate 24/7, convenience is ingrained in the fabric of Japanese society.

Workplaces often provide amenities such as on-site cafeterias, rest areas, and shower facilities, ensuring employees can maximize their productivity and comfort.

Furthermore, the prevalence of advanced technology and digital infrastructure streamlines processes, such as cashless payments, online services, and efficient communication systems.

Additionally, the safety and cleanliness of Japanese cities contribute to a stress-free living environment. Whether it’s accessing services, navigating the city, or running errands, the exceptional convenience in Japan ensures that foreigners can seamlessly adapt to the working culture and enjoy a comfortable and efficient lifestyle.

Safety

Safety is a paramount aspect that distinguishes Japan as an attractive destination for foreigners seeking work opportunities.

With its low crime rates and a strong emphasis on social order, Japan consistently ranks as one of the safest countries in the world.

Whether walking the streets late at night or commuting on public transportation, individuals can feel a sense of security in their daily lives. The Japanese culture of respect, discipline, and adherence to rules contributes to a harmonious and peaceful society.

Moreover, efficient and well-organized emergency response systems ensure quick assistance in times of need. Additionally, the well-maintained infrastructure, including well-lit streets, surveillance cameras, and reliable public services, further enhances the country’s overall safety.

Foreigners considering working in Japan can have peace of mind knowing that they are entering an environment where personal safety and security are highly valued, allowing them to focus on their professional pursuits and enjoy a worry-free experience.

Cons of Working as a Software Engineer in Japan

It is also natural that while discussing the advantages of working in Japan in the software field, we also discuss the cons. After all, no coin can have only one side.

However, in this case, let me call these challenges and not cons or disadvantages because I do not see any disadvantages to making a career in Japan as a software professional.

Following are some of the challenges which will need you to come out of your comfort zone to make the most out of working in Japan:

Adapting to a Different Culture

As we discussed, exposure to completely different work cultures and practices will add value to the personal and professional profile. However, adapting to new ways always requires stepping out of your comfort zone to adapt to the differences in the working styles of Japanese companies.

Moreover, it is not only about the work culture; one has to adjust to the overall Japanese culture to integrate well. And believe me, one needs to be very observant, flexible, and adaptive to adjust to a pleasing but very different culture and many unspoken rules of Japan.

Language

Many companies in Japan are adding English as their official language along with Japanese. Moreover, most modern tech companies in Japan do not need software developers to communicate in Japanese.

However, even if you do not need Japanese at work, learning it will make your career path smoother and make you better integrate into Japanese society. It will certainly add value if you can pass at least the N3 level of JLPT or, for a more practical Japanese, the J-Test for Japanese.

Considering the above, please adopt this challenge of learning Japanese even if you do not find it mandatory.

Different Styles of Software Project Execution

Software project execution methodologies are the same all over the world. The old Waterfall to the current agile, DevOps, and all. However, the flavors may differ even though there are definite guidelines to describe how we manage an IT project. And Japan has always had its own flavor to execute IT projects.

In a way, Japan was more agile even during the waterfall ways of software project execution days.

The reason is that, unlike other parts of the world, Japan never had very rigid functional requirement documentation, and hence also a technical requirement. The requirements used to evolve on the way with during the continuous face-to-face meetings for which Japan is famous.

Another difference was the lack of user documentation. The reason was that people stayed with their employers for life.

All the above points are changing now, but nothing changes overnight, so please be prepared to face and adjust to some things that might be new.

Strict Quality Consciousness

The expectations about quality expectations in Japanese software projects come as a surprise to many. Be prepared for those unexpected extra hours for QA activities.

Smaller Houses

Everyone with some knowledge of Japan knows about the small apartments and houses in Japan. However, experiencing something is completely different from knowing about it. So, unless you are not from some megacity with small apartments, please be prepared to adjust to smaller accommodations.  

Do read the guide for finding and renting apartments in Japan.

Final Thoughts and Conclusion

The IT industry in Japan, which comprises approximately 3% of the global market, exhibits a promising trajectory of steady growth for the foreseeable future.

A shortage of domestic programmers and the need for diversity to become globally more competitive have urged Japanese companies to extend their hiring efforts beyond national borders in the IT realm.

Despite its appeal, IT roles in Japan tend to offer lower annual base salaries compared to the USA and others.

Salary determinants can range from the particular skill set, years of experience, and the city of employment to the employing company.

While startups typically foster a diverse work environment, larger corporations tend to present more substantial salary offerings.

However, on the one hand, it is about what we earn today; on the other, it is about the prospect of tomorrow. Japan clearly has great prospects of much higher earnings and career growth because of a continuously increasing demand and a short talent pool. Moreover, job stability, safety, convenience, etc., easily compensate for the slightly lower earnings.

As the global IT sector and Japan’s role continues to increase, job opportunities in the field are practically limitless.

Conclusion

New enterprises emerge daily in Japan as anywhere else in the world, and specialists can find abundant opportunities in their niche areas. However, as we discussed earlier, Japan has the distinction of having a lesser number of people as compared to the rising demand for them.

Japanese companies such as Fast Retailing (UNIQLO), Mercari, Rakuten, and PayPay often recruit international talent to extend their global influence.

Simultaneously, international giants such as Amazon Japan, Google Japan, and Apple are known for their active recruitment efforts and tend to offer more competitive salaries than their Japanese counterparts.

It always pays to head to where opportunities are more or expected to be more. More demand with less supply always favors the supply, and that’s why Japan, or the land of the rising sun, is the land of opportunities for information technology professionals and a great destination to work.

If you are convinced that Japan is a great place to work as a software engineer, you may also like to read about the cost of living in Japan. If you are looking forward to working in Tokyo, we have guides for the cost of living in Tokyo and the average rent in Tokyo.