The cost of a Japanese work visa has risen by 40% in a single year, a move that trade experts say signals a broader retreat from globalisation. For British workers and businesses, the contrast could not be starker. While Tokyo erects new barriers, London pushes on with its post-Brexit strategy of free-trade agreements and labour mobility.
"This is a protectionist turn," said Maria Gonzalez, an economist at the London School of Economics. "Japan is making it harder for foreign talent to enter, and that will hurt its own competitiveness in the long run." The fee hike, announced without fanfare in the budget, brings the cost of a standard work visa to ¥60,000, roughly £330. That may seem modest, but for a nurse or a factory technician from the Philippines or Vietnam, it can represent several weeks' wages.
Japan's labour market is already notoriously tight. The country faces a shrinking workforce and an ageing population. Yet instead of opening doors, the government has chosen to make them more expensive. "It's a tax on the workers Japan desperately needs," said Gonzalez.
In contrast, the United Kingdom has been aggressively lowering barriers. The post-Brexit points-based system, while criticised by some, has prioritised skilled workers from around the world. The Home Office reports that visa applications for health and care workers have doubled since the new system was introduced. And the cost of a skilled worker visa from outside the EU? Around 70% of what Japan now charges, adjusted for income levels.
But the real vindication, say proponents of the British model, lies in the broader economic philosophy. "Openness is not just a moral stance, it's a competitive advantage," said Lord Digby Jones, former director-general of the CBI. "Japan is turning inward. We are turning outward. And that means British businesses can attract the best talent at lower cost."
The numbers back him up. Since the UK left the EU, it has signed new trade deals with Australia, New Zealand, and is in advanced talks with India. Each deal includes provisions for easier movement of professionals. Meanwhile, Japan's trade agreements remain stuck in the pre-pandemic era, with few concessions on labour mobility.
For British workers, the immediate impact is on wages and prices. A more open labour market keeps inflation in check by ensuring employers can fill vacancies quickly. In the care sector, where staff shortages had been pushing up costs, recruitment from overseas has helped stabilise prices. "We've been able to hire three nurses from Kerala without a visa fee that would break the bank," said Joan Watson, manager of a care home in Manchester. "That means we can keep fees affordable for families."
The contrast is even sharper in manufacturing. Japan's fee hike comes as its factories struggle to meet demand for electronics and cars. "British factories can pivot faster because we can bring in engineers from anywhere in the world," said Kevin Bell, a union official at a Toyota plant in Derbyshire. "Japanese workers might have more job security now, but they'll see slower wage growth as their companies can't expand."
Critics of the British model warn that open borders can depress wages for low-skilled workers. But the evidence suggests otherwise. The Office for National Statistics calculates that since 2020, wages for the lowest-paid have risen faster than for the highest-paid. And unemployment remains near record lows.
"The Japanese government is trapped in a zero-sum view of the world," said Gonzales. "They think every foreign worker takes a job from a local. But Labour mobility expands the pie. British openness is the right call."
As the global economy slows, the choice between protectionism and open trade becomes ever more stark. Japan's visa fee hike is a warning sign. Britain's response should be to double down on its model, not just as a matter of principle, but as a matter of survival.