Building an inclusive workforce through disability employment in Japan

Work is not only a means of contributing to society and the economy, it is a vital pathway to economic independence and social inclusivity. The UN SDGs call for “sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” clearly reflects this principle. Crucially, this goal is intended for everyone, regardless of disability.

According to a 2023 report by Japan’s Ministry of Health, Labour and Welfare (MHLW), approximately 11.6 million people (9.2% of the population) live with a disability. In 2024, the actual employment rate of persons with disabilities reached 2.41% in private-sector companies, 3.07% in national public institutions and 3.05% in prefectural public institutions. The private-sector employment rate has risen steadily from 1.46% in 2004 to 2.41% today, a 1.65-fold increase over 20 years. While around 30% of graduates from special needs schools enter regular employment, approximately a third use employment-related welfare services. Notably, the number transitioning from these services into private-sector jobs has increased nearly 20-fold in the same period.

Japan’s demographic challenges compound the importance of expanding inclusive employment. A July 2025 survey found that 50.8% of companies reported shortages of full-time workers, while 28.7% faced shortages of non-regular employees. Strengthening pathways for people with disabilities to enter the workforce can help mitigate these shortages while fostering more diverse corporate cultures, advancing CSR and encouraging workplace redesign through adapted accommodation.

In January 2023, MHLW announced plans to raise the statutory employment rate of private-sector companies for persons with disabilities from 2.5% to 2.7% by FY 2026. The target has already increased in stages, from 2.3% in 2023 to 2.5% in 2024, with a further rise to 2.7% scheduled.

In October 2025, a new nationwide Employment Choice Support programme was launched, strengthening systems that help individuals select work arrangements that suit their abilities and aspirations. The programme is expected to expand career options and improve job retention, while promoting more flexible pathways to work.

In November 2025, MHLW proposed revising the criteria of the “Monisu” certification programme, originally created to promote disability employment in SMEs and extending eligibility to large corporations. Established in 2020, the scheme provides certified SMEs with access to low-interest financing, with 545 certified companies as of June 2024. Current discussions focus on improving objectivity in evaluation criteria, introducing mandatory requirements and balancing corporate burdens through levies and incentive schemes.

Support systems for employers are also evolving. In August 2025, the Tokyo Metropolitan Government launched the Severe Disability Employment Support platform, providing practical information and services to jobseekers and companies. The platform connects individuals with severe disabilities to support organizations employers. It also shares case studies and introduces digital assistive technologies tailored to different types of disabilities including eye-tracking input systems and chin-controlled device. It deploys specialized coordinators to support job matching and workplace adjustments.

Japan’s Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers (JEED) offers foundational training programmes for professionals working in disability employment support across the welfare, education and healthcare sectors. It aims to strengthen the skills and capacity of those who support jobseekers.

Momentum is also building in the private sector. Sony Group has pursued a recruitment policy based on the principle of hiring “people who can work together with Sony,” regardless of age, gender, sexual orientation or disability status. Many employees with disabilities work as full-time employees. Recognizing diversity as a driver of innovation, Sony promotes inclusion through four pillars: leadership commitment, peer awareness, employee self-empowerment and workplace infrastructure developed by HR and general affairs.

Money Forward, a cloud-based accounting software company, has introduced a tailored performance evaluation system for employees with disabilities. New hires start on fixed-term contracts focused on integration and retention, before transiting to productivity-based evaluation as permanent employees. Opportunities to transition into general career-track roles are supported by performance-based management with appropriate accommodation. At Sumitomo Precision Products, employees with hearing impairments play an essential role in welding aircraft components, among other skilled tasks.

Expanding access to work strengthens the social participation and economic independence of people with disabilities and brings diverse talent and unique perspectives into organizations. The cumulative impact of collaboration among government, business and civil society is building the foundation for a more inclusive and resilient society in which no one is left behind.