Core Insights - The home care industry in Japan is facing a significant crisis, with many institutions on the brink of collapse due to declining profitability, labor shortages, and an aging workforce [1][2][3] - The number of home care institution closures has reached a historical high, with 85 closures reported from January to November 2025, and a total of 172 elderly welfare institution closures [1] - A recent revision of care compensation regulations has negatively impacted home care institutions, reducing their basic compensation by 2% to 3%, despite an overall increase of 1.59% in the care industry [2] Group 1 - The home care sector is experiencing a wave of closures, with 85 institutions shutting down in 2025, marking a record high [1] - The aging population in rural areas is particularly reliant on home care services, with some towns having over 30% elderly population and insufficient local care providers [1] - The average monthly salary for home care workers is 300,000 yen, which is 80,000 yen lower than the overall average salary in the care industry [2] Group 2 - The number of care workers in Japan has decreased from 2.154 million to 2.126 million in 2023, while the demand for care services remains high at approximately 7.26 million [2] - Many care workers are aging, with a significant portion over 60 years old, leading to a workforce that is increasingly unable to meet the demands of the industry [3] - The rising costs of care supplies and the inability to offer competitive wages are forcing many institutions to transfer operations to larger organizations [3]

Core Viewpoint - From April, foreign workers with "specific skills" will be allowed to engage in home care services in Japan, addressing the growing demand for elderly care in the country [1] Group 1 - The introduction of foreign workers in home care is a response to Japan's aging population and labor shortages in the caregiving sector [1] - The "specific skills" visa program aims to attract skilled foreign labor to fill gaps in the domestic workforce, particularly in sectors like healthcare [1] - This policy change is expected to enhance the quality of care provided to the elderly, as well as improve the overall efficiency of the home care industry [1]