Demographic Crisis: Japan's Births Drop to Record Lows, Population Shrinks

Japan’s birth rate fell to a new low in 2022, dropping below 800,000 for the first time in history, according to official estimates released this month.

The decline was much faster than the government had anticipated, and it underscored the demographic challenges facing the world’s oldest and most rapidly aging society.

The number of births in Japan was 796,000 last year, down 5.8 percent from 2021 when it was already the lowest on record.

The number of deaths was 1.6 million, up 1.2 percent from the previous year.

As a result, Japan’s population shrank by about 800,500 people, or 0.65 percent, to 122.42 million as of January 1, 2023.

This was the largest annual decrease since comparable data became available in 1968.

Japan has been grappling with a population crisis for decades, as its people live longer and have fewer children.

The average age in Japan is 49, the highest in the world after Monaco, according to the World Bank.

About one in every 1,500 people in Japan is 100 years old or older, according to government data.

 

Shrinking Implications

The shrinking population has serious implications for Japan’s economy and society, as it strains the pension and healthcare systems, reduces the labor force and consumer spending, and threatens to erode the country’s global influence.

Prime Minister Fumio Kishida, who took office in October, has vowed to take urgent steps to reverse the trend and increase the birth rate.

He has pledged to spend about $140 billion on measures to support young couples and families, such as child allowances, tax breaks, paternity leave, and nursery facilities.

But experts say that such policies alone are not enough to solve the problem, and that Japan needs to address deeper issues such as gender inequality, work-life balance, and immigration.

Japan has one of the lowest female labor participation rates among developed countries, according to the Organization for Economic Cooperation and Development.

Many women face discrimination and harassment in the workplace and are expected to shoulder most of the domestic and child-rearing responsibilities at home.

Japan also has one of the most restrictive immigration policies in the world and has been reluctant to accept foreign workers and refugees.

The number of foreign residents in Japan increased by more than 10 percent last year to 2.99 million, but they still account for less than 2.5 percent of the total population.

Some analysts say that Japan needs to embrace a more diverse and inclusive society if it wants to overcome its demographic crisis and revitalize its economy.

“Japan is on the brink of a crisis,” Kishida said in January. “We have to act now or never.”

 

Parenthood Cost

Many young Japanese find the idea of starting a family in Japan daunting due to the costs involved in parenthood.

The high cost of living, the long working hours, and the urban lifestyle make having children a luxury they cannot afford.

A study by Jefferies Financial Group, reported by CNN, ranked Japan as one of the most expensive places in the world to raise children in 2022.

The latest population statistics show that Japan’s birth rate has fallen to a record low, raising concerns about the future of the aging nation.

Masataka Nakagawa, a senior researcher at the National Institute of Population and Social Security Research, told Deutsche Welle that the decline in marriages was also a factor.

He said that Japanese people tend to marry later and have fewer children, mainly because of financial pressures.

For her part, Chisato Kitanaka, an associate professor of sociology at Hiroshima University, blamed the lack of effective policies from the government to address the population problem.

She said that the government had known that the decline was inevitable but had failed to act.

She also pointed out the social obstacles that young people face when they want to have children.

 “In Japan, having a child means that the couple must get married. Only 2% of children are born out of wedlock in Japan,” she added.

“This is not socially acceptable here, and it makes raising a child as a single mother difficult because she has to work and earn money, while at the same time being defined by society,” she noted.

Some experts suggest that large-scale immigration could be a solution to Japan’s population problem and provide a stable supply of workers.

However, they acknowledge that this step is difficult to achieve at present, especially as many Japanese are not yet ready to accept foreigners.

 

Fading Future

The new government of Prime Minister Fumio Kishida has vowed to make Japan a more child-friendly society, hoping to reverse the country’s long-term demographic decline.

But critics say the government’s proposals are not enough to overcome the deep-rooted social and economic factors that discourage parenthood in Japan.

They point out that previous administrations also tried to boost fertility rates with generous spending but failed to achieve any significant results.

Japan is facing a severe aging crisis, with nearly 30% of its population over 65 years old.

The consequences of this trend are felt in every aspect of Japanese life. More than half of the country’s municipalities are classified as depopulated areas, and many small businesses are struggling to find successors, as The Guardian reported.

The media and entertainment industry has shifted its focus to cater to the elderly, with commercials for funeral services, joint pain supplements, and incontinence pads.

Even the yakuza, the notorious Japanese crime syndicates, are aging rapidly, with more members in their seventies than in their twenties.