The Training and Employment System, starting April 2027, marks the 'abolition' of Technical Intern Training and a redesign of foreign talent career paths. A business owner with 20 years in construction explains what managers must do now, covering job mobility, N4 Japanese requirements, and the 10-year path to becoming a core asset.
建設業界で20年の現場経験を持ち、数多くの外国人技能実習生の指導にあたってきた。現在はUKARU代表として、建設分野の特定技能試験対策をDXし、外国人が日本で長く活躍できる環境づくりに注力している。
著者について詳しく→3-Line Summary
- The Training and Employment System (Ikusei Shuro), starting April 2027, effectively "abolishes" Technical Intern Training. The system's purpose shifts from the pretense of skill transfer to the actual "training for Specified Skilled Workers."
- With a 3-year period, mobility (transferring jobs) allowed after 1–2 years, and N4 Japanese requirements, foreign workers will now be in a position to "choose" their employers. Companies are now forced into a competition to be the "chosen" workplace.
- A 10-year template for creating a core workforce is now institutionalized: 3 years Training → 5 years Specified Skilled Worker (SSW) Level 1 → Level 2. Only companies that proactively transition workers from Level 1 to Level 2 before the new system starts can avoid mobility risks.
"I heard Technical Intern Training is ending—what happens to my current interns?" "If job mobility is deregulated in 2027, will our foreign staff run away?" "What exactly should I do first?"
As a business owner with 20 years of experience in the construction industry and hands-on site experience, I will clarify the essence of the Training and Employment System (Ikusei Shuro) starting in April 2027 and outline what construction company owners must do in the 12 months leading up to its implementation. I will focus on the business decisions regarding "how to build your company with foreign talent over the next 10 years" rather than the minute details of exams and paperwork.
For specific procedures and cost estimates for obtaining Specified Skilled Worker Level 2, please refer to the Specified Skilled Worker Level 2 Construction Sector: Comprehensive Guide for Business Owners, which I recommend reading alongside this article.
To put it simply: the Training and Employment System is a long-term retention rail designed to "help foreign talent acclimate to Japanese society over 3 years, send them to Specified Skilled Worker Level 1, and eventually allow for permanent residency via Level 2."
While the Technical Intern Training Program was a "one-off labor force returning home after 3–5 years," Training and Employment fundamentally changes the design into a "system where the state supports the process of turning someone into a core asset over 10 years."
By April 2027, ensure your current Technical Interns and SSW Level 1 employees perceive your company as a "place where they can live in Japan with their families."
In this context, a "company where you can live in Japan with your family" equals "a company that supports the acquisition of Specified Skilled Worker Level 2." Only companies that achieve this will retain foreign talent after job mobility is deregulated. In all other companies, the most talented individuals will be the first to leave.
The Training and Employment system transforms the "3-year contract Technical Internship" into a "3-year contract SSW Level 1 Prep School." Since the goal changes from Returning Home → Permanent Residency, every aspect of employment design must change.
In June 2024, the amendment to the Immigration Control Act and the Technical Intern Training Act was passed, with implementation set within three years of promulgation (by June 2027). The actual start date is currently being coordinated for April 1, 2027.
| # | Item | Details | |---|---|---| | 1 | Abolition of Technical Intern Training | The existing Technical Intern Training Program will stop accepting new recruits and transition to "Training and Employment" (Ikusei Shuro). | | 2 | Shift in Purpose | From "international contribution via skill transfer" to "Securing and developing human resources." | | 3 | Duration and Transition Route | Institutionalizing a career path: 3 years Training → SSW Level 1 → SSW Level 2. | | 4 | Allowing Job Mobility (Tenseki) | Allowing workers to transfer jobs after 1–2 years within the same business field (under certain conditions). | | 5 | Strengthening Japanese Requirements | Aiming for N5 equivalent upon entry and N4 equivalent when transitioning to SSW Level 1. |
The details directly affecting practical operations are in the stage of being finalized through ministerial ordinances and notices throughout 2026.
Please check for updates on the Immigration Services Agency: Maintenance of Related Laws Regarding the Training and Employment System (Provisional Name).
As a manager, the first thing you must grasp is "how the logic of the system is changing."
| Item | Technical Intern Training (Current/Ending) | Training and Employment (From April 2027) | |---|---|---| | System Purpose | International contribution via skill transfer (Pretense) | Training for SSW Level 1 (Intent) | | Period of Stay | 3–5 years | 3 years | | Sectors | 90 occupations (Limited list) | Generally the same as Specified Skilled Worker (e.g., 14 construction occupations) | | Job Mobility | Prohibited in principle | Possible within the same field after 1–2 years | | Japanese Requirement | None | N5 equivalent at entry → N4 equivalent at Level 1 transition | | Career Path | Premised on returning home | SSW Level 1 → Level 2 → Permanent Residency | | Supervisory Body | Supervising Organization (Kanri Dantai) | Reorganized into "Supervising and Support Organizations" with stricter requirements | | Company Obligations | Plan certification/training implementation | Ensuring educational opportunities is expected to become mandatory | | Human Rights Issues | Structural problems with ties to employer | Structurally mitigated by allowing job mobility |
Among the many changes, three directly impact management decisions:
The following sections dive deeper into these three pillars.
The deregulation of job mobility (Tenseki) is the change that managers must understand most clearly.
Under Technical Intern Training, workers were essentially tied to the same company for three years. This restriction was the background behind the social issue of "disappearances."
Under Training and Employment, workers will be able to transfer jobs within the same business field after 1–2 years (varies by industry) of entering Japan. This means that a "labor market equivalent to that of Japanese workers" will open up for foreign talent.
| Position | Risk | Opportunity | |---|---|---| | Companies with poor conditions | Top talent will be the first to leave via transfer | (Almost none) | | Companies with average conditions | Constant risk of mid-level staff transferring | Possible to accept talented staff from other companies | | Companies supporting Level 2 | Minimal risk | Attracting talent who transfer because they want a company where they can live with their families |
Many managers misunderstand this point, thinking, "If I raise the salary, they will stay."
In reality, whether or not foreign talent "can bring their families" is the deciding factor for retention. Even if the salary differs by 30,000 yen a month, a company where they can "obtain Level 2 → live in Japan with my wife and children" is overwhelmingly stronger. This was consistent across my on-site interviews in Vietnam, Indonesia, and the Philippines.
The mechanism that allows for family accompaniment and the numerical impact on management are covered in detail in the Specified Skilled Worker Level 2 Construction Sector: Comprehensive Guide for Business Owners.
While job mobility deregulation seems like a scary change, it is a system where only companies that have a clear route to Level 2 will win structurally. While salary competition has no end, providing a family accompaniment and permanent residency route is a "long-term investment that is difficult for other companies to imitate."
"What happens to the Technical Interns currently at our company in April 2027?"
While we must wait for the 2026 ministerial ordinances, the scenarios currently considered certain are as follows:
| Case | Expected Handling | |---|---| | Already in Technical Intern Training by April 2027 | Continue until completion according to the existing plan. After completion, choose to transition to SSW Level 1 or Training and Employment. | | Already in SSW Level 1 by April 2027 | No impact. Continue Level 1 for 5 years; the route to Level 2 also continues. | | New recruits after April 2027 | Accepted as Training and Employment (Ikusei Shuro). New certifications for Technical Intern Training will cease. |
Rather than waiting for the details of transitional measures, there are management decisions you should already be moving on:
The rule of thumb is to prioritize measures you can take now to prepare for the possibility that transitional measures turn out to be more "difficult."
Foreign talent costs change significantly based on the "fee structure for each status of residence."
| Status of Residence | Main Cost Items | Estimated Total Annual Cost | |---|---|---| | Technical Intern Training (Current) | Supervision fees + initial entry expenses | Approx. 300,000–500,000 yen | | Training and Employment (2027–) | Supervision & support fees + Japanese education costs | Unconfirmed (Estimated 300,000–600,000 yen) | | SSW Level 1 | Registered Support Organization fees (approx. 360,000 yen) | Approx. 360,000 yen | | SSW Level 2 | Not required (Independent employee) | 0 yen |
Transitioning to SSW Level 2 directly leads to a permanent fixed cost reduction of 360,000 yen per year per person. For 10 years of employment, this is a cumulative reduction of 3.6 million yen per person.
The management decision is clear:
The number of people you can successfully guide through the "Training → Level 1 → Level 2" rail will determine your company's fixed cost structure 10 years from now.
For specific cost estimates (including CCUS registration, administrative scrivener fees, and exam prep), please refer to the cost estimation section of the Specified Skilled Worker Level 2 Construction Sector: Comprehensive Guide for Business Owners.
Under the new system, "ensuring Japanese language education opportunities" is expected to be a company obligation. It is realistic to anticipate an educational cost burden of several thousand yen per month in addition to supervision fees. The mindset of "they'll come for free" will not work after 2027.
This is the strategic heart of the system.
[Training and Employment: 3 Years]
↓ Japanese N5 → N4, Pass skill evaluation exam, CCUS Level 2 equivalent
[Specified Skilled Worker Level 1: 5 Years]
↓ N4 → N3~, Team leader experience, CCUS Level 3, Pass JAC evaluation exam
[Specified Skilled Worker Level 2: Indefinite]
↓ Family accompaniment possible, Route to Permanent Residency
[Permanent Residency / Naturalization]
At the shortest, one can reach permanent residency status in 10 years from entering Japan. Compared to the previous "Technical Intern (3–5 years) → Returning Home" one-way ticket, the investment value for the company increases exponentially.
| Stage | Main Role of the Company | |---|---| | Training: 3 Years | Support for N4 acquisition, site OJT, prep for skill evaluation exams | | SSW Level 1: 5 Years | CCUS registration (business and technician), accumulating work history, obtaining level certification | | Transition to Level 2 | Prep for JAC evaluation exam (40 academic/25 practical questions, 75% pass), proving team leader experience, immigration application (using an administrative scrivener recommended) | | SSW Level 2 | Appointment as a core employee, role as a mentor for juniors, support for family accompaniment |
The implications for managers are clear:
This is the reality of the "rail towards integration."
Under Training and Employment, it is expected that JLPT N5 equivalent upon entry and JLPT N4 equivalent when transitioning to SSW Level 1 will be mandatory requirements.
| Level | Benchmark | Capability | |---|---|---| | N5 | Introductory | Basic greetings, understanding simple instructions, Hiragana/Katakana + approx. 100 Kanji | | N4 | Basic | Everyday conversation, site safety instructions, approx. 300 Kanji | | N3 | Intermediate | Abstract concepts, newspaper articles |
The system is being designed with the obligation for companies to ensure educational opportunities. Specifically:
This should be viewed as an investment, not a cost. An employee who cannot reach N4 and transition to SSW Level 1 must return home after 3 years, meaning 3 years of educational investment cannot be recovered.
Many construction companies fall into this trap:
"Their practical Japanese on-site is sufficient, yet they can't pass the JLPT exam."
The JLPT measures reading and listening; it uses a different scale than practical conversation on-site. "My employee is fluent, so N4 will be easy" does not apply. Learning opportunities specifically for JLPT prep are necessary.
UKARU specializes in exam prep for the SSW Level 2 Construction Sector, but for N4 prep, it is practical to use JLPT-specific materials in parallel.
The Training and Employment system is expected to cover generally the same 16 fields as Specified Skilled Worker. Understanding the impact on sectors other than construction allows you to read the movements of the overall labor market.
| Industry | Impact at Implementation | Advice for Managers | |---|---|---| | Construction | High (CCUS integration + established Level 2 track record) | Accelerate transition to Level 2. Use family accompaniment as a selling point. | | Caregiving | High (Shortage is most severe) | Japanese investment is key due to N3 requirement. Organize EPA/Intern mix. | | Agriculture | Medium (Compatibility with seasonal hiring) | Shift thinking to year-round employment to get on the Level 2 route. | | Food Manufacturing | Medium (Already highly dependent on foreign talent) | Smoothly transition relations with Supervising Organizations to the new "Support Organizations." | | Manufacturing | Medium | Competition with large companies. SMEs can differentiate with "Family Accompaniment + Permanent Residency." | | Food Service/Lodging | Medium | Possibility of N3 requirements for customer-facing roles. | | Auto Maintenance/Aviation | Low | Limited mobility risk due to high specialization. |
The construction industry is 3–5 years ahead of other industries in the transition to SSW Level 2. The "three-piece set" of CCUS integration, team leader requirements, and Level 2 evaluation exams is already operational.
In other words, while other industries are confused by the implementation of Training and Employment, top companies in construction are already in a position to secure talent using the "family accompaniment model." This is a first-mover advantage at the industry level.
Right now, while other industries are confused asking "What is Training and Employment?", is the strongest window for securing human resources. Companies with a track record of obtaining Level 2 are prioritized for introductions by sending organizations in Vietnam and Indonesia as "companies where you can live in Japan with your family."
It is realistic to think in terms of a 24-month plan: 12 months before implementation and 12 months after.
| Month | Action | |---|---| | May–July 2026 | List and score existing Technical Interns and SSW Level 1 employees (Who to transition to Level 2). | | Aug–Oct 2026 | CCUS Business Registration + Candidate Technician Registration and accumulation of work history. | | Nov–Dec 2026 | Apply for candidate's CCUS Level 3 certification / Start Level 2 exam prep (using UKARU, etc.). |
| Month | Action | |---|---| | Jan–Feb 2027 | Candidates take and pass the JAC Evaluation Exam. | | March 2027 | Apply for change of status of residence (Administrative Scrivener recommended). |
| Month | Action | |---|---| | April 2027 | Training and Employment system starts. Secure employees who have already transitioned to Level 2 before mobility deregulation. | | April 2027 | Start new recruits as Training and Employment. Formulate recruitment plans under the new standards. |
| Period | Action | |---|---| | May–Dec 2027 | Activate Japanese education programs for 1st-year Training and Employment employees. | | Jan–April 2028 | Start support for N4 acquisition for 1st-year employees (Transition to Level 1 at the earliest in 2030). |
Here are the specific actions managers should start within 6–12 months, listed in order of priority.
From the employees currently under SSW Level 1, list 3–5 candidates who are at the team leader level and can communicate in Japanese.
Judgment Criteria:
Confirm both Business Registration (Company) and Technician Registration (Individual employees). If not registered, start this week. Obtaining CCUS Level 3 takes at least 3 months, or 6 months if starting from scratch; therefore, the bottleneck is CCUS, not the exam.
The JAC evaluation exam (40 academic/25 practical questions, 75% pass) is a difficult hurdle that only 1 in 3–5 people pass without preparation.
For the reality of pass rates and the three patterns of those who fail, see Data Analysis of Pass Rates for SSW Level 2 Construction.
Based on the premise that new recruits after April 2027 will be under Training and Employment, review the following:
The essence of the Training and Employment system is the "rail towards integration." To ensure employees get on that rail, you need a learning foundation that makes passing SSW Level 2 (75% on academic and practical exams) a standard occurrence.
What UKARU provides:
UKARU handles the exam prep portion; we do not provide CCUS procedures or administrative scrivener services. By clarifying roles, we maximize the time efficiency of managers.
A. April 1, 2027 is the most likely date. The amended law was passed in June 2024, mandating implementation within three years (by June 2027), and government agencies are preparing for an April 1, 2027 start. The final confirmation will be promulgated via a cabinet order in 2026.
A. Transitional measures allowing them to continue until the end of their existing plans are expected. After completion, they are expected to have the option to transition to SSW Level 1 or Training and Employment. Details will be finalized in 2026.
A. It is confirmed that job mobility within the same business field will be possible after 1–2 years. However, details such as the minimum service period and exam pass requirements for each industry will be determined by ministerial ordinances. It is more accurate to understand this as "conditional deregulation" rather than "unconditional."
A. There may be industries where securing talent becomes difficult temporarily. However, in the long run, "Japanese-speaking foreign talent" has overwhelmingly higher retention and productivity, allowing for a structure where educational investment is recovered. Please view N4 support as an investment, not a cost.
A. Supervising Organizations are planned to be reorganized into "Supervising and Support Organizations" with strengthened requirements (external audit functions, financial base requirements, etc.). Whether an existing contract can continue depends on whether the organization meets the new standards in 2026. We recommend confirming intentions with your Supervising Organization early.
A. There is no problem even if you don't make it. The route to SSW Level 2 will continue after April 2027. What is more important is "clearly stating to your employees that the company has a policy of supporting Level 2." Simply stating this greatly reduces mobility risk.
A. They are likely to be the same or slightly higher due to the increased operating costs associated with strengthened requirements. On the other hand, once an employee reaches SSW Level 2, supervision and support fees become permanently zero, making Level 2 overwhelmingly advantageous in the long run.
A. The route to returning home after 3 years remains. While the system's purpose is "training for Specified Skilled Workers," the freedom to choose to return home will be ensured. We recommend designing your employment by identifying "employees who wish to reach Level 2" and "employees who plan to return home after 3 years" at the intention-confirmation stage.
Here is a collection of primary sources to refer to for practical operations. Information freshness is vital, so always confirm with official sources.
The Training and Employment system is the largest structural reform of foreign talent policy in the post-war era.
If you view it as "Technical Intern Training just changing its name," you will miss its essence. The three-piece set of mobility deregulation, Japanese requirements, and the 10-year core workforce route is a system design that repositions foreign talent from "3-year disposable labor returning home" to "long-term core assets settling in Japanese society."
Ultimately, a manager's strategy boils down to one thing:
How quickly and surely can you position your company as a "place where they can live in Japan with their families"?
Obtaining Specified Skilled Worker Level 2 is the most concrete and measurable signal to create that perception. The track record of even one employee obtaining Level 2 will directly influence your future recruitment, retention, and network with sending organizations.
How many employees do you want to transition to Level 2, and by when? Once the number and timeline are decided, UKARU's B2B plan can provide total support—from progress management and learning materials to reports for the President.
Start by listing candidate employees and checking your CCUS registration status. A specific cost estimate and a 6–8 month schedule are organized in the Specified Skilled Worker Level 2 Construction Sector: Comprehensive Guide for Business Owners.
For a deeper, item-by-item breakdown of every cost — including 1st-vs-Nth-employee differences, subsidy stacking, and effectively-negative-cost scenarios — see Complete Cost Estimation: SSW2 Construction — 120k–250k yen/person, 360k yen Annual Savings, 8–10 Month Payback.