Japan’s economy is under pressure from rising energy prices and defence costs and the impact of the pandemic. Plummeting birth rates and an ageing population further threaten the sustainability of its labour market. A 2023 study by independent thinktank the Recruit Works Institute points to a labour supply shortage of 3.41 million people by 2030, and over 11 million by 2040.
Gender inequality is another significant pressure point. Research shows that a gender-inclusive society and workforce leads to innovation and economic growth. However, Japan has one of the lowest levels of gender equality among G7 countries. It has slipped to its lowest ranking yet in the World Economic Health Forum’s latest Global Gender Report, particularly in terms of women in leadership positions.
