Japan’s population decreased by 500,000 last year, highlighting the nation’s growing difficulties in addressing labor shortages and maintaining its social security system amid a shrinking tax base.
The country’s total population fell by 550,000 from the prior year, reaching 123.8 million in 2024. This marked the 14th consecutive year of decline, as per data from October 2024 released on Monday by the Ministry of Internal Affairs and Communications. The number of Japanese citizens decreased by 898,000, the largest drop since records began in 1950.
These statistics underscore Japan’s challenging demographic situation, which raises concerns about the viability of its social welfare system as the number of contributors decreases. The working-age population, those aged 15 to 64, dropped by 224,000 to 73.7 million, further straining a nation with the highest debt-to-GDP ratio among developed countries.
Japan’s child population also decreased by 343,000 to 13.8 million, making up a record-low 11.2% of the total population. This decline coincides with labor ministry data released in February showing that the number of births hit a new historic low, heightening worries about the long-term sustainability of domestic industries in the face of a shrinking workforce.
The unemployment rate in Japan stands at 2.4%, the lowest among OECD countries, and has remained below 3% for four years. By 2040, Japan is anticipated to experience a labor shortfall of 11 million, according to an estimate by Recruit Works Institute.
Partially mitigating the overall population decline, the number of foreign residents increased for the third consecutive year, rising by 342,000 from the previous year, according to the most recent data.
Japan’s demographic challenges reflect broader global trends. While South Korea’s fertility rate slightly increased last year for the first time in nine years, it remains well below the replacement level at 0.75. In France, the decline in childbirths accelerated in 2023, marking the fastest rate in half a century. Meanwhile, China’s population has shrunk for three consecutive years.
