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Fortune
Fortune
Lionel Lim

‘No time to spare’ to address Japan’s baby bust as Tokyo promises free day care to all preschoolers

(Credit: Yuichi Yamazaki—AFP/Getty Images)

Japan is dealing with a demographic crisis. The country’s total fertility rate (TFR), which measures the average number of children a woman will have during her life, dropped to 1.2 last year, a new low. It’s even worse for Tokyo, the nation’s capital, where the TFR dropped below one for the first time ever in 2023.

Now, the city of Tokyo is dangling another incentive for prospective parents to consider: free day care.

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