Tokyo, Dec. 23 -- Japan is preparing for a major overhaul of its foreign labour policies, balancing a desperate need for workers with growing public concern over immigration, Kyodo News reported.

The government announced plans to cap the number of trainees under its upcoming "Employment for Skill Development" program at approximately 426,000 for its first two years, starting in fiscal 2027.

The move comes as Japan reviews its broader foreign worker policies, including stricter measures against visa overstays, following instructions from Prime Minister Sanae Takaichi. Public concern over the growing number of foreign nationals in the country has also influenced the review.

At the same time, Japan is grappling with a chronic labour short...