Tokyo: Japan’s population continues to decline at an alarming rate, severely impacting its economic and industrial sectors. The country recorded 720,988 births in 2024, a 5% drop from the previous year, marking the lowest birth rate since records began in 1899. Meanwhile, the death rate increased by 1.8%, reaching 1.6 million, further exacerbating the demographic crisis.
The shrinking workforce has led to a decline in tax revenues and rising social security costs. Prime Minister Ishiba has allocated 3.6 trillion yen to support childcare policies in an effort to encourage families to have more children. However, factors like rising unemployment, high living costs, gender discrimination, and a reluctance among young people to marry or have children continue to drive the decline. Experts predict that if this trend persists, Japan’s population could drop to 86.7 million by 2060.
Labor shortages have also affected businesses, with 342 companies going bankrupt in 2024, according to Teikoku Data Bank. Public debt has soared to 232.7% of GDP, while social security spending has increased by 20% in the past decade, reaching $253 billion.
Global Trends in Birth Rates
- France and China have also seen a decline in birth rates, with China’s birth rate falling for the third consecutive year.
- South Korea, however, recorded a slight increase in births for the first time in nine years, with 238,300 births in 2024, largely attributed to delayed marriages post-COVID-19.
