Japan's Employment for Skill Development Program: Guide to the April 2027 Reform (Scheduled)

Japan’s Employment for Skill Development (ESD) program is scheduled to come into operation on April 1, 2027, replacing the Technical Intern Training Program (TITP). The program aims to develop and secure human resources in labor-shortage fields. The period of ESD is three years in principle, during which workers are developed to the skill level of Specified Skilled Worker (i) (SSW(i)).

Note: The ESD program is scheduled to take effect on April 1, 2027. This article is based on the Immigration Services Agency of Japan (ISA)‘s “Outline of Employment for Skill Development Program (Revised July 2026),” the ESD Q&A (in Japanese), and the field-specific operation policies decided by the Cabinet on January 23, 2026. Operational details may be added or revised before the program starts.

What Is the Employment for Skill Development Program?

The purpose of the ESD program is to develop human resources with skills at the level of SSW(i) through three years of employment in Japan in the ESD industrial fields, and to secure human resources in those fields (ISA, Outline of the ESD Program). Its legal basis is Act No. 60 of 2024, promulgated on June 21, 2024.

The ISA explains that issues had been pointed out with the TITP, including the gap between the program’s purpose and its actual operation and the protection of foreign nationals’ rights (ESD Q&A). The ESD program was established by restructuring the TITP, which aimed at international cooperation through skills transfer, into a program for developing and securing human resources.

Program Structure at a Glance

Item	Details
Legal basis	Act on Partial Revision of the Immigration Control and Refugee Recognition Act and the Act on Proper Technical Intern Training and Protection of Technical Intern Trainees (Act No. 60 of 2024)
Start date	April 1, 2027 (scheduled)
Period of ESD	Three years in principle (the ISA’s policy is to allow continued stay of up to one year for those who fail the tests required for SSW(i))
Purpose	Develop SSW(i)-level human resources and secure workers in labor-shortage fields
Scope	ESD industrial fields (17 fields as of July 2026)

Key Organizations

The following organizations are involved in the ESD program (ISA, Outline of the ESD Program):

• Employment for Skill Development Organization (ESDO): Accredits ESD Plans, conducts on-site inspections, and provides guidance and advice
• Supervising and support organizations: Mediate employment relationships between foreign nationals and implementing organizations, and audit whether ESD is properly carried out (license system)
• Implementing organizations (accepting employers): Employ foreign nationals and develop their skills
• Sending organizations: Recruit candidates and provide pre-departure training in sending countries
• Hello Work (Public Employment Security Offices): Supports employer changes in cooperation with supervising and support organizations and ESDO

For an overview of Japan’s residence status categories, see our guide to the types of residence status in Japan.

Five Key Differences from Technical Intern Training

The ESD program differs from the TITP in the following five respects.

1. Purpose

The TITP aims at international cooperation through human resource development via the acquisition of skills in Japan. The ESD program, by contrast, aims at developing and securing human resources in labor-shortage fields (ESD Q&A).

2. Voluntary Employer Changes

The ISA explains that changing employers at the worker’s own will “was not permitted under the TITP” (ESD Q&A).

Under the ESD program, in addition to changes for unavoidable reasons, such as human rights violations including violence or power harassment, voluntary employer changes are permitted under certain conditions (see below).

3. Revised Supervision and Protection

	TITP	ESD Program
Supervising body	Supervising organizations (license system)	Supervising and support organizations (license system with tightened criteria)
Plan accreditation and on-site inspections	Organization for Technical Intern Training (OTIT)	ESDO

The license criteria for supervising and support organizations are stricter than those for TITP supervising organizations. TITP supervising organizations cannot provide supervising and support services under the ESD program without obtaining a supervising and support organization license (ESD Q&A; examples of the criteria are given below).

On the sending side, Memoranda of Cooperation (MOCs) are prepared with sending countries, and mechanisms are introduced to ensure that costs paid to sending organizations are not unduly high (see below).

4. A Clearer Pathway to Specified Skilled Worker

The ISA states that the ESD program is designed to have continuity with the SSW system so that foreign nationals can advance their careers while working in Japan (ESD Q&A).

ESD (three years in principle) → SSW(i) (up to five years in principle) → SSW(ii) (no upper limit)

5. Japanese Language Proficiency Levels

The ESD program sets the following Japanese language levels (ISA, Outline of the ESD Program; main points of the field-specific operation policies, in Japanese). The levels are those of the Framework of Reference for Japanese Language Education, which, based on the Common European Framework of Reference for Languages (CEFR), describes Japanese language proficiency in six levels from A1 to C2.

Stage	Japanese language level
Before starting work	Passing a test at A1 or higher (e.g., the Japan Foundation Test for Basic Japanese (JFT-Basic) or N5 of the Japanese-Language Proficiency Test (JLPT)), or taking A1-level classes (100 hours or more) at a certified Japanese language institution or equivalent
Voluntary employer change	Set for each field, within the range from A1 to the level required for SSW(i)
End of ESD / transition to SSW(i)	A2 or higher (e.g., JFT-Basic, JLPT N4); some fields require a higher level
SSW(ii)	Set for each field (the ISA’s outline chart shows a test at B1 or higher, e.g., JLPT N3)

There is no Japanese language requirement at the time of entry. Those who have not passed an A1-level test take A1-level classes, for example during post-entry training (ESD Q&A).

Eligible Fields and Acceptance Numbers

17 ESD Industrial Fields

ESD industrial fields are the SSW specified industrial fields in which it is appropriate for workers to acquire skills through employment. They were set by the field-specific operation policies decided by the Cabinet on January 23, 2026, and as of July 2026 are the following 17 fields (main points of the field-specific operation policies):

1. Nursing care
2. Building cleaning
3. Linen supply
4. Industrial products manufacturing
5. Construction
6. Shipbuilding and ship machinery
7. Automobile maintenance
8. Accommodation
9. Railway
10. Logistics and warehousing
11. Agriculture
12. Fisheries
13. Food and beverage manufacturing
14. Food service
15. Forestry
16. Wood products
17. Resource recycling

Of the 19 SSW fields, the only fields not set as ESD industrial fields are motor transport and aviation (as of July 2026).

Expected Number of Acceptances

The field-specific operation policies set the expected number of acceptances for each field, based on the shortage of workers that remains even after productivity improvements and efforts to secure domestic workers. This number is used as the upper limit of acceptance. For the figures by field, see the main points of the field-specific operation policies cited above.

Conditions for Employer Changes

To protect foreign nationals more appropriately as workers, the ESD program permits voluntary employer changes under certain conditions. In all cases, a worker may change only to an employer within the same job category (ESD Q&A).

Changes for Unavoidable Reasons

As under the TITP, changes are permitted when there are unavoidable circumstances, such as human rights violations including violence or power harassment.

Voluntary Employer Changes

Voluntary employer changes are new under the ESD program. The ISA lists the following conditions (ESD Q&A):

1. Skills and Japanese language: The worker has acquired the skill level (e.g., the basic grade of the National Trade Skill Test) and Japanese language level set for the field in the field-specific operation policies
2. Transfer restriction period: The worker has worked under the current implementing organization beyond the restriction period set for each field, between one and two years (where the period exceeds one year, the implementing organization may set it at one year)
3. No private job placement: The change does not involve job placement by a private employment agency
4. Excellent new employer: The new employer is an excellent implementing organization
5. Ratio of transferred workers: Workers who changed employers voluntarily account for no more than a certain share of the new employer’s ESD workers (one-third; where the new employer is in a major metropolitan area (outside the designated areas) and accepts workers from regional areas (within the designated areas), such transferred workers may not exceed one-sixth)
6. Payment to the previous employer: The new employer pays a set amount to the previous employer

Support for Employer Changes

Hello Work supports employer changes in cooperation with supervising and support organizations and ESDO. Regional councils are also organized to promote the development of local accepting environments.

Transition to Specified Skilled Worker

The ESD program aims to develop human resources at the SSW(i) level.

Transition Flow

ESD (three years in principle) → Pass tests → SSW(i) (up to five years in principle) → Pass tests → SSW(ii) (no upper limit)

Requirements for Transition to SSW(i)

To move from ESD to SSW(i), workers must pass the following tests (ESD Q&A):

Test	Details
Skills test	Grade 3 of the National Trade Skill Test, etc., or the SSW(i) evaluation test
Japanese language test	A test at A2 or higher (e.g., JLPT N4)

Under the current SSW system, those who have satisfactorily completed Technical Intern Training (ii) are exempt from the skills and Japanese language tests when moving to SSW(i). Under the ESD program, passing these tests is a requirement for the transition.

If the Tests Are Not Passed

Those who fail the tests required for transition to SSW(i) may be allowed a certain continued stay of up to one year (ESD Q&A). The ISA’s outline describes this as a stay to retake the tests.

Entering Japan as SSW(i) Without ESD

It is also possible to take the tests abroad and enter Japan as SSW(i) without going through the ESD program.

Employer Preparation

Obligations of Implementing Organizations

Employers accepting ESD workers have the following main obligations (ISA, overview of the related ministerial ordinances, in Japanese):

• Prepare an ESD Plan and apply for accreditation: Prepare a plan for each worker and obtain accreditation from ESDO. The plan sets out the period of ESD (within three years), goals (skills and Japanese language proficiency), and content
• Remuneration and treatment: Remuneration must be equal to or greater than that paid to a Japanese national engaged in the same work
• Skill development: Develop the worker’s skills and Japanese language proficiency according to the plan

Changes for Supervising Organizations

Existing supervising organizations must obtain a new supervising and support organization license to carry out work under the ESD program. The license criteria have been tightened and newly include appointing an external auditor and having at least two full-time officers or employees engaged in supervising and support work (ESD Q&A).

Sending Organizations and MOCs

Under the ESD program, new MOCs are prepared with sending countries, and in principle workers are accepted only from countries with which an MOC has been prepared. Mechanisms to ensure that costs paid by foreign nationals to sending organizations are not unduly high are also introduced (ISA, Outline of the ESD Program).

What Employers Can Do Now

Ahead of the April 2027 start, we recommend that accepting employers consider the following:

1. Check whether your field and job category are covered: The 17 fields and job categories are listed in the main points of the field-specific operation policies cited above
2. Choose a supervising and support organization: Check whether your current supervising organization will obtain the new license, and if not, choose a new organization
3. Prepare ESD Plans: Consider a three-year skill development plan
4. Prepare internal systems: Set up Japanese language education and skills training
5. Apply before the start date: Even before the system starts on April 1, 2027, applications for the license of supervising and support organizations have been accepted since April 15, 2026, and applications for the certification of ESD Plans since September 1, 2026. The Organization for Technical Intern Training explains where and how to apply (ISA Q&A on the ESD system, Q3, Q6 and Q8)

Transitional Measures for Technical Intern Trainees

The ISA has set out the following transitional measures for technical intern trainees around the start date (April 1, 2027) (ISA, Outline of the ESD Program; transitional measures for technical intern training, in Japanese).

Trainees in Japan on the Start Date

Those who entered Japan before the start date and are engaged in technical intern training on that date may continue their technical intern training. In this case, the rules of the TITP apply.

If the requirements are met, trainees may also move to the next stage of technical intern training. However, moving to Technical Intern Training (iii) is limited to those who have been in Technical Intern Training (ii) for one year or more as of the start date.

Important: In this case, trainees cannot move from technical intern training to ESD.

Plans Applied for Before the Start Date

If an application for accreditation of a technical intern training plan is filed before the start date, the trainee may be able to enter Japan as a technical intern trainee after the start date. This applies only to plans that start within three months of the start date (by June 30, 2027). Applications for accreditation of technical intern training plans cannot be filed on or after the start date.

Trainees Who Left Japan Before the Start Date

Those who completed technical intern training and left Japan before the start date cannot re-enter as technical intern trainees. However, depending on the period and type of their training, they may be able to enter Japan as ESD workers.

Transition to SSW

Even after the ESD program starts, for the time being, those who have satisfactorily completed Technical Intern Training (ii) may move to SSW(i) if the intended work is related to the occupation and operation of their Technical Intern Training (ii) (ESD Q&A).

Summary

The ESD program restructures the TITP into a program aimed at developing and securing human resources.

• Scheduled start on April 1, 2027: The TITP is restructured into the ESD program
• Three-year development period in principle: Aims to develop skills at the SSW(i) level
• Voluntary employer changes: Permitted under certain conditions, within the same job category
• 17 fields (as of July 2026): The 19 SSW fields excluding motor transport and aviation
• Japanese language: A1 before starting work; A2 or higher for transition to SSW(i)
• Supervising and support organizations: Existing supervising organizations need a new license; criteria are tightened

How We Can Help

AEGIS International Administrative Firm offers consultations on responding to the ESD program.

• Checking the system: We help you sort out, based on ISA’s published materials, whether your work falls within an ESD industrial field and job category, and how the transitional measures apply to technical intern trainees you currently employ
• Consultations on residence procedures: Our registered immigration specialists (gyoseishoshi, licensed specialists in Japanese government procedures, including visas, who have notified the Regional Immigration Services Bureau) take consultations on residence procedures related to ESD and SSW

If you have any questions about the ESD program, please feel free to contact us.

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Disclaimer: This article provides general information and does not constitute legal advice for individual cases.