Japan Faces Population Decline; Government Invests to Spur Birth Rates

Japan's population has marked its 15th consecutive year of decline, shedding over half a million people. Record lows in birth rates, coupled with record highs in deaths, highlight serious demographic challenges. Despite government incentives, experts say these measures may not fully address the issue of reluctant young couples.

Japan's total population marked the 15th straight year of decline, according to government data released Wednesday. The nation has lost more than half a million people as its demographic landscape ages and birth rates remain low.

In 2022, Japan's births hit a record low of 730,000, while deaths soared to a record high of 1.58 million. As of January 1, 2023, Japan's population stood at 124.9 million.

New data from the Internal Affairs Ministry revealed an 11% increase in foreign residents, surpassing 3 million for the first time. This demographic, mostly aged 15 to 64, now constitutes nearly 3% of the total population.

Bleak job prospects, high living costs, and a gender-biased corporate culture have made younger Japanese increasingly reluctant to marry or have children. Government surveys confirm this trend.

In response, the government has allocated 5.3 trillion yen ($34 billion) in the 2024 budget to fund child-related incentives, including increased subsidies for childcare and education. Over the next three years, another 3.6 trillion yen ($23 billion) will be spent annually in tax money.

Experts argue the measures primarily target married couples who already have or plan to have children, failing to address the broader reluctance among young people to marry.

If trends continue, Japan's population could plummet around 30% to 87 million by 2070, with 40% of people aged 65 or older.

(With inputs from agencies.)