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Japan Population Crisis, The Country Calls for More Foreign Workers

Japan is grappling with a pressing population crisis that continues to escalate. The latest data from Japan’s Internal Affairs Ministry reveals a decline in the number of Japanese nationals by more than 800,000 in the past year.

Japan’s life expectancy still remains high, however, rising economy has discouraged a huge percentage of locals from giving birth. As a result, their economy continues to decline due to higher numbers of old people who are not as productive as the young people. Source: Japan News

As of January 01, this year, the total population stood at 125.4 million, including both Japanese and foreign residents.

Remarkably, the number of foreign residents in Japan increased significantly by over 10% compared to the previous year. This includes nearly 289,500 new foreign residents. However, the number of Japanese residents has continued to decline for the 14th consecutive year since its peak in 2009.

One notable exception to this trend is the capital city, Tokyo. It experienced a slight overall population increase, thanks to the rise in foreign residents.

This demographic challenge is further worsened by the high death tolls in Japan, which reached another record high last year. There was a recorded 1.56 million deaths compared to just 771,801 newborns. The country has been facing a declining birth rate, leading to a growing issue with an aging population. The increasing elderly population puts a strain on the workforce. Thus making it challenging to fund pensions and healthcare demands.

The number of new foreigners in Japan continues to rise especially since the country re-opened its borders after the Covid-19 Pandemic. Source: The Travel Intern

The root of Japan’s population decline can be traced back to the 1980s. Japan’s economic boom was followed by a drop in fertility rates. Currently, Japan’s fertility rate stands at 1.3, far below the necessary rate of 2.1. Making it harder to maintain a stable population without relying on immigration.

Like many other East Asian countries, Japan is not alone in facing these demographic challenges. Neighboring countries such as China, South Korea, Singapore, and Taiwan are also struggling with declined birth rates. This is primarily due to rising living costs and social discontent.

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To address this demographic crisis, Japanese authorities have made efforts to attract more foreign residents. In 2018, the government introduced new visa categories to allow an estimated 340,000 foreign workers. In 2021, there was a major shift in policy, with the government considering allowing foreigners in certain skilled jobs to stay indefinitely.

However, the progress in welcoming more foreign residents has been hampered by the Covid-19 pandemic. Border closures and lockdowns across many prefectures have disrupted these efforts.

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A Tokyo-based research organization pointed out that Japan needs about four times as many foreign workers. This is, if it still aims to achieve the government’s economic goals, by 2040. However, it emphasized the importance of creating an environment that supports migrant workers’ rights. This will go a long way in fostering social change to promote greater acceptance of foreigners in the country.

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