WHY SHOULD YOU CARE?

Japan, home to 125 million people, is currently the 11th most populated country in the world. This is expected to change over the decades to come; Japan’s population is aging and shrinking. In 2014, the sales of adult diapers surpassed diapers for babies. Having a high life expectancy of 84.91 years and the highest proportion of elderly citizens in the world (29.1% as of 2022), Japan is predicted by the United Nations to experience a fall in the Japanese population below 100 million, by the year 2050. Coupled with a plummeting fertility rate, the population decline may be further hastened, with fewer people of working age in one generation after another.

A 2022 survey conducted by the Japanese government showed less than half of the population in their 30s wished to marry, with reasons for people’s decreasing desire to marry or have children including small living spaces, financial burden, and loss of freedom. The decline of the working-age population stirs grave concerns about the future of Japan’s aging workforce, its economic growth, national pension, and healthcare services.

The decline in the Japanese workforce inevitably poses a threat to the country’s global competitiveness. Japan has long been known for the high quality and innovative designs of its manufactured goods. Yet close competition has arisen from countries like South Korea and China. At the end of 2010, China overtook Japan as the world’s second biggest economy; it has since become a major source of mass market goods which challenges Japan’s position. Besides, less than 3% of the country’s population are immigrants, compared to 15% in the UK. As its population continues to shrink and age, Japan will possibly accept more immigrants and foreign workers in order to introduce new blood to the economy and stimulate economic growth.

Japan’s economy is closely intertwined with the rest of the world, and it is currently facing big challenges posed by domestic issues and by countries with rising economic powers. Personally, Japan brings many fond memories of the times when my family and I went to visit in the past. To me, it is a vibrant place where it is impossible for one to get bored; I therefore remain hopeful that the innovative spirit and resilience of Japanese people can someday pave the country’s way out of its current economic state.