japan aging and shrinking

What is the population issue in Japan?

• Ageing + shrinking population

• Very high life expectancy: 81 (men), 88 (women)

• Low birth rate (declining since 1975)

• Population growth now negative ( -0.19%)

What is Japan’s population structure?

• (2016)

• 12.8% young (0–14)

• 59% working (15–64)

• 27% elderly (65+)

• Dependency ratio: 69 dependents per 100 workers

Why is Japan’s population ageing?

• People living longer
  → better healthcare + diet
  → more elderly

Why is the birth rate low in Japan?

• Women have children later: 25.6 → 30

• Fewer marriages

• High cost of living
  → Result: ageing population + shrinking workforce

What are the economic impacts of ageing?

• Fewer workers
  → labour shortages
  → lower productivity
  → slower economic growth

• More elderly
  → higher healthcare + pension costs
  → government spending increases
  → taxes rise

What are the social impacts?

• High dependency ratio
  → workers support more dependents
  → lower standard of living

• Closure of schools (fewer children)

• Shortage of army recruits

What problems will Japan face in the future?

• By 2050:

  • ~40% elderly

  • Only ~9% young

• Population falls: 126m → ~90m
  → even fewer workers + more dependents

How is Japan responding?

• Increase workforce (e.g. raising retirement age)

• Use of technology/automation

How successful are Japan’s responses?

• Policies have partly reduced impacts (more workers, tech use)

• But core problem not solved (low birth rate + ageing)

• Overall: long-term issue, difficult to manage → only partly successful