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It’s“now or never”to tackle declining births and the shrinking population, the country’s leader warned last year – nearly eight years afterhis predecessor had pledgedto “confront the demographic problem head on.”

Best Stocks for Value Investors AI Enhanced Stock Screening ✌️【Risk】✌️ Real-time global stock, futures, and exchange rate data to keep you informed of market trends and seize investment opportunities. This year is no exception. The number of new births fell for an eighth consecutive year in 2023, reaching a record low and representing a 5.1% decline from the previous year, according to preliminary data released this week by the government.

Best Stocks for Value Investors AI Enhanced Stock Screening ✌️【Risk】✌️ Expert predictions with real-time stock, futures, and metals, energy data to help you quickly recover and grow. The demographic crisis has become one of Japan’s most pressing issues, with multiple governments failing to reverse the double blow of a falling fertility rate and swelling elderly population. More people are dying than being born each year, causing the population to fall rapidly – with far-reaching consequences for Japan’s workforce, economy, welfare systems and social fabric.

Best Stocks for Value Investors AI Enhanced Stock Screening ✌️【Risk】✌️ Real-time India stock and global stock indices, futures prices, and data to help you make efficient investment decisions. Related articleThis community’s quarter century without a newborn shows the scale of Japan’s population crisis

Japan is far from the only country with this problem. Its East Asian neighbors, includingChina,Hong Kong,Taiwan, andSouth Koreaface similar issues, as do several European nations such as Spain andItaly.

Best Stocks for Value Investors AI Enhanced Stock Screening ✌️【Risk】✌️ Expert predictions with real-time stock trend analysis to help you quickly select high-potential stocks and grow capital. A day after Japan released its preliminary data this week, South Korea released its own figures showing its fertility rate – the world’s lowest – dropped yet again in 2023.

Unlike many developed countries with low fertility rates,such as the United States, Japan and other East Asian nations have shied away from using immigration to bolster their population.

But Japan’s crisis is unique in that it’s been decades in the making, experts say – meaning its impact is particularly evident now, with relief unlikely to come anytime soon. So whatever path Japan takes will likely offer a roadmap for other countries facing unchartered territory, and a glimpse into their potential future.

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For a population to remain stable, it needs a fertility rate of 2.1,defined as the total numberof births a woman has in her lifetime. A higher rate will see a population expand, with a large proportion of children and youth, as seen in India and many African nations.

But in Japan, “that measure of fertility has been below 2.1 for 50 years,” Raymo said. It fell below that level after the 1973 global oil crisis pushed economies into recession, and never climbed back up.

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Because of that skewed ratio, the total number of babies being born each year will continue to fall –even if women start having more kids– because the pool of women of childbearing age is already so small, and shrinking each year.

“It has to continue – it cannotnotcontinue,” Raymo said. “Even if all of a sudden Japanese married couples started having three children on average … the population would continue to decline. The number of births would, for a while, still continue to decline. It’s not reversible.”

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Official projections echo this prediction. According to models by the government’s Institute of Population and Social Security Research (IPSS), which weremost recently revised last year, the population will fall 30% by 2070. At that point, the number of people age 65 and over will account for 40% of the population, it forecast.

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Experts have pointed to Japan’s high cost of living, stagnant economy and wages, limited space, and the country’s demanding work culture as reasons fewer people are opting to date or marry.

Japanese people’s “willingness to form a family … has declined considerably,” according to a2022 survey by the IPSS.Among single adults who have never wed, fewer say they intend to get married compared to previous years – while more say they wouldn’t be lonely even if they continued living alone. About one third said they did not want a relationship.

For women, economic costs are not the only turn off. Japan remains a highly patriarchal society in which married women are often expected to take the caregiver role, despite government efforts to get husbands more involved.

For all these reasons, many people are “ambivalent about marriage,” postponing it for years – “and then they’re 35, they’re 40, and they’ve sort of drifted into singlehood,” Raymo said.

Best Stocks for Value Investors AI Enhanced Stock Screening ✌️【Risk】✌️ Free stock selection services backed by expert predictions. Our advanced analytics and real-time market data will help you stay ahead of the competition and make smart, profitable investment decisions. Many of these issues are also plaguing other East Asian nations with their own population woes. Marriage rates haveplummeted in China,where women are more educated and financially independent than ever.In South Korea,only one third of young people feel positively about marriage, according to polls, with many saying they don’t have enough money for marriage or feel it’s simply not necessary.

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Industries are feeling labor shortages; jobs are hard to fill, with fewer young adults entering the workforce; some rural communities are dying out, with one villagethat went 25 yearswithout any new births.

Even in cities, things are changing – with many service jobs occupied by young immigrants, or students from countries such as China or Vietnam, Raymo said.

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But given the decline is expected to continue for at least several decades, Japan will likely feel the blow to its pension and health care systems, and other social infrastructure that is difficult to maintain with a shrinking workforce.

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But for now, this is all speculation. No country has been in this position before. And, Raymo said, the “only likely large-scale response” the government can implement is “mass immigration on a level Japan has never experienced.”

Immigration is a controversial issue in Japan, a largely conservative country that perceives itself as ethnically homogenous. It hashistorically failedto integrate previous waves of foreign workers and has instead relied on temporary fixes such as employing foreigners on student visas. Foreign residents and Japanese nationals of mixed ethnicity have long complained ofxenophobia, racism and discrimination.

Japan may not have a choice, however.A 2022 reportby a Tokyo-based research organization found that Japan needs about four times as many foreign workers by 2040 to achieve the government’s economic goals.

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Decades down the line, the new Japan “might be a slightly poorer country, and a slightly less generous country in terms of policy support for elderly and families,” Raymo said.

“I can imagine a much smaller and a much different Japan,” he said. “But I don’t imagine an empty Japan.”

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