Japan should accept more foreign workers to address labor shortages in the economy and sustain growth, the head of the country's largest business lobby said Friday.

Japan Business Federation Chairman Sadayuki Sakakibara also said in a speech that the lobby, better known as Keidanren, will hold a dialogue with its South Korean counterpart next month for the first time in seven years, despite prolonged political tensions between the two countries.

"It is essential to create a system" for Japanese firms to more aggressively accept workers from abroad, Sakakibara said at a seminar organized by Kyodo News, calling for a "reform in the way of working."