Overview

• Japan’s total fertility rate dropped to 1.15 in 2024, the lowest level since records began in 1947, while annual births fell to 686,061 for the first time below 700,000.
• Deaths in 2024 reached around 1.61 million, resulting in a net population loss of approximately 919,000 and marking the 18th straight year of decline.
• Prime Minister Shigeru Ishiba has expanded child allowances, introduced tuition-free high school and guaranteed full wage compensation for couples taking joint parental leave.
• A shrinking pool of pension contributors and a nearly 40 percent rise in beneficiaries have pushed social security spending to one-third of the national budget, contributing to the highest debt-to-GDP ratio among advanced economies.
• Persol Research and Consulting estimates Japan could face a shortage of 6.3 million workers by 2030, a challenge compounded by strict immigration rules.