Japan is staring down a demographic cliff. With births hitting a record low of 730,000 last year and deaths surging to 1.58 million, the population has shrunk for 15 straight years.
It now stands at around 125 million, but projections warn of a staggering drop to just 87 million by 2070—with 40 percent of that being seniors aged 65 or older. These numbers have lit a fire under policymakers too reverse the trend before it's too late.
Why It Matters
Japan's demographic crisis is a warning sign for much of East Asia. Neighboring countries like South Korea and China are grappling with the same issues of plunging fertility rates and aging populations. For Japan, the challenge lies not just in policies but in transforming a culture that has long prized long work hours and traditional family roles.
Newsweek reached out to the Japanese Children and Families Agency via email with a request for comment.
Moves in the Pipeline
The government is throwing everything it has at the problem, from cash incentives to matchmaking apps. Prime Minister Ishiba Shigeru has outlined a slate of policies aimed squarely at reversing the decline and easing the pressures on the nation's aging society.
Cash for Kids
Massive financial backing is at the heart of Japan's strategy. In 2024 alone, the government earmarked 5.3 trillion yen (about $34 billion) to help young families. Over the next three years, an annual 3.6 trillion yen ($23 billion) will be poured into extending child allowances and boosting childcare and education support. Officials hope these moves will convince couples that starting a family doesn't have to be a financial gamble.
Work-Life Imbalance
The grind of Japan's work culture has long been blamed for discouraging parenthood, especially among women. Starting April 2025, Tokyo is introducing a four-day workweek for its 160,000-plus state employees. Parents with young kids can also opt to shave up to two hours off their daily schedules to focus on family—though this comes with a pay cut.
Experts, however, warn that real change won't happen unless more men step up to share parenting duties. Ekaterina Hertog, a researcher in Japanese labor practices, noted that while new policies like extended paternal leave are a step in the right direction, "cultural shifts are needed to get men to actually take it." Otherwise, women will continue bearing the brunt of family responsibilities, often at the expense of their careers.
Opening the Doors
Japan has also begun loosening its notoriously rigid immigration policies. With industries like elder care and agriculture desperate for workers, the government is widening visa categories and ramping up plans to triple the number of foreign workers by 2040. Immigration reform is a practical necessity to sustain economic growth as the domestic workforce dwindles.
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