Japan’s inhabitants contracted by half 1,000,000 final yr, underscoring the nation’s mounting challenges in tackling labor shortages and financing its social safety system with a shrinking tax base.
The general inhabitants dropped by 550,000 from the earlier yr to 123.8 million in 2024, extending the streak of declines to 14 years, in keeping with information as of October 2024 launched Monday by the Ministry of Inner Affairs and Communications. The variety of Japanese nationals alone declined by 898,000, the steepest fall since comparable data started in 1950.
The info function one other reminder of Japan’s bleak demographic outlook, elevating alarms over the sustainability of its social welfare system because the variety of contributors dwindles. The variety of individuals aged 15 to 64—the core of the labor pressure—fell by 224,000 to 73.7 million, intensifying the fiscal pressure on a nation already carrying the best debt-to-GDP ratio amongst developed economies.
Knowledge additionally present that Japan’s youngster inhabitants declined by 343,000 to 13.8 million, or a record-low 11.2% of the whole. That drop follows labor ministry figures launched in February that confirmed births fell to a new historic low, amplifying issues over the long-term way forward for home industries amid a dwindling provide of latest employees.
Japan’s unemployment charge is 2.4%, the bottom amongst OECD international locations, and has stayed beneath 3% for 4 years. By 2040, Japan is projected to face a labor shortfall of 11 million, in keeping with an estimate by Recruit Works Institute.
Partially offsetting the general inhabitants shortfall, the variety of overseas residents rose for the third straight yr, rising by 342,000 from a yr earlier, the newest information present.
Japan’s inhabitants woes mirror broader world patterns. South Korea’s fertility charge ticked up barely final yr for the primary time in 9 years, however at simply 0.75, it stays properly beneath the substitute charge. In France, the drop in births accelerated in 2023 to the quickest tempo in half a century, whereas China’s inhabitants has declined for 3 consecutive years.
This story was initially featured on Fortune.com
