Japanese PM, Kishida, vowed to take effective steps to address the declining population at the opening of this year’s parliamentary session.
While addressing the Parliament, National Diet, PM Kishida promised to actively take measures to address the declining population and it is a “now or never” situation for the nation.
During his speech, Kishida said that by June, he would submit plans for doubling the budget for child-related policies, and that a new government agency would be created by April to deal with the issue.
Kishida said in his policy speech , “Our nation is on the cusp of whether it can maintain its societal functions.”
He further added, “It is now or never when it comes to policies regarding births and child-rearing – it is an issue that simply cannot wait any longer.”
Decrease of Japan’s Population
There has been a continuing decrease in population since 2008, and that decline has only grown larger and larger every year. About 20,000 people were lost in 2008. From 100,000 in 2010, the number had grown to more than half a million by 2019. Japan lost more than 640,000 people in 2021, according to the most recent data released in 2022.
Japanese birth rates are declining due to a combination of factors, including a declining marriage rate, an increase in the average age of those getting married, an increased economic burden, childcare costs, and an increase in infertility. Japan remains one of the most expensive countries when it comes to raising a child.
Currently, new parents in Japan receive a one-time payment of 420,000 yen after the birth of their child. A proposal has been made by the Ministry of Health, Labor and Welfare to raise the amount to 500,000 yen, and it is expected to take effect on April 1, 2024, at the start of the next fiscal year. According to experts, rising inflation and stagnant wages will make this an inadequate incentive. Japanese policies to boost birth rates including the birth care incentives have been struggling and have not shown signs of success.
There is also a demographic shift underway in other East-Asian countries such as China and South Korea. In 2022, China’s population plunged for the first time in 60 years. Other countries are also experiencing population declines as well.
Japan had an estimated 4.9 trillion U.S. dollars in gross domestic product in 2021. As a result, Japan is now ranked third in terms of GDP in the world. But the current median age of the country is 48.4 years which makes it the world’s oldest society. This might be concerning since it will result in an older workforce which may affect the productivity of the nation which in turn will have a negative impact on the economy.
