Japan's population has continued its decline for the 15th consecutive year, with a drop of over half a million people in 2023. This trend is attributed to the aging population and persistently low birth rates in the country. Last year, Japan recorded a historic low of 730,000 births, while the number of deaths reached a record high of 1.58 million, resulting in a total population of 124.9 million as of January 1.
On a positive note, the data released by Japan's Internal Affairs Ministry revealed an 11% increase in foreign residents, pushing their population over 3 million for the first time. These foreign residents, predominantly in the working-age group of 15 to 64, now constitute nearly 3% of the total population.
Studies indicate that younger Japanese individuals are increasingly hesitant to marry or start families due to discouraging job prospects, the rising cost of living outpacing income growth, and a corporate culture that places a disproportionate burden on women and working mothers.
To address the declining birth rates, the government has allocated 5.3 trillion yen ($34 billion) in the 2024 budget to provide incentives for young couples to have more children. These incentives include increased subsidies for childcare and education, with an annual expenditure of 3.6 trillion yen ($23 billion) in tax funds over the next three years.
However, experts point out that these measures primarily target married couples planning to have or already having children and do not address the growing segment of young individuals who are reluctant to marry.
Projections suggest that Japan's population could plummet by around 30% to 87 million by 2070, with four out of every ten individuals being 65 years or older at that time.
