Since the mid-1980s, Japan has accepted number of foreign workers including illegal workers who are in violation of immigration control laws. Even under the long-continued depression, about 700,000 foreign workers work in various local labor markets. Considering the forecast of population decrease in the future, there emerged a new voice that requests the acceptance of permanent immigrants. However, examination of various points including the tightness of demand and supply of labor in critical areas shows that the labor shortage at the current stage and for the foreseeable future, e.g. 2010, looks not critically serious. It depends on various factors including Japan's foreign direct investment, development of new technology and participation of older and women workers in labor market. We also have to consider the increasing number of unemployed in domestic labor market, which stands at about 3,500,000 in 2001. On the other hand, the Japanese immigration policy has various problems that should be reorganized. They include the measures towards illegal foreigners who are almost 40 percent in the number of total foreign workers and the social integration of those who already overstayed in Japan and who are not willing to return to their countries.
