- Life expectancy of 87 years (longest living people) – due to high quality healthcare
- Following World War II, there was a three-year period baby-boom
- However, the birth rate has decreased ever since
- Low Fertility Rate
- Due to high expenditure on health and pensions, Japan’s public debt has soared over double its GDP
- Increased life expectancy and falling birth rates have cause the population to shrink.
- Working population is also shrinking.
- Higher dependency ratio
- The aging population is causing a strain on the nation’s finances
- Immigration is not high enough to make up for the shrinking workforce
Policies to combat the issues:
- The prime minister aims to keep the population above 100 million
- “Robot revolution” – investment in capital that can replace certain jobs involving labor
- Prime minister is still reluctant to open Japan’s doors to foreigners, hence immigration is not being considered as a solution