Japan Faces Severe Population Decline as Birthrate Hits Historic Low

Japan is facing a severe and worsening population decline, a trend that has persisted for decades. According to the latest data, in 2024, the number of deaths reached 1,618,684, while the number of newborns dropped to just 720,988 &mdash marking a record low. This results in a natural population decrease of nearly 900,000 people. Since Japan&rsquos population peaked in 2008, the total population has shrunk by nearly 5 million. Experts predict that by 2048, Japan&rsquos population could fall below 100 million and decrease further to 87 million by 2060.

Despite the Japanese government's continuous efforts to encourage childbirth &mdash such as offering childbirth subsidies, expanding childcare facilities, and promoting improved parental leave policies &mdash these measures have failed to reverse the declining birthrate. Currently, Japan&rsquos total fertility rate stands at just 1.20, far below the replacement level of 2.2. Many young people are delaying marriage or choosing not to have children at all due to financial pressures, work stress, and changing family values. Even though the number of marriages slightly increased in 2023, the birthrate did not show corresponding growth.

Aging Population Poses Financial Strain on Japan&rsquos Economy

Currently, about one-third of Japan's population is over 65, requiring increased government spending on healthcare and welfare, while the working-age population continues to decline. This results in labor shortages, impacting business growth and adding pressure to Japan&rsquos social security system.Japan's total fertility rate is only 1.20, significantly lower than the replacement level of 2.2. (Image / Source: Pexels)

To address the workforce shortage, Japan has relaxed some immigration policies in recent years, allowing more foreign workers to enter the country. However, this effort has not fully offset the economic challenges posed by population decline.

In response, Japan has also turned to artificial intelligence (AI), robotics, and automation to boost productivity and reduce reliance on traditional labor. Many companies have adopted automated systems in industries such as logistics and manufacturing. Additionally, digital transformation and remote work are being promoted to enhance efficiency. Nevertheless, these strategies alone may not be enough to resolve the structural issues caused by Japan&rsquos declining population.