Lifestyle
Economy
Explanation:
The shift in Japan's population can be partially attributed to lifestyle choices. The standard maternity age in Japan has been rising over the course of three decades. In 1970 the average mother’s age at first childbirth was 25.6 while in 2011 it peaked at 30.1. It is safer and more likely for younger mothers to produce more children, hence the effect this phenomenon is having on the Japanese population. In 2009 the Japanese government started an initiative program that would pay parents $3,400 per year for every child they have in an effort to boost birthrates. To counter the current decline, Japanese mothers would need to plan for having at least two children.
Over the past couple of decades Japan has experienced a significant decrease in the population. Declining birth and death rates are the major reasons why Japan is seeing this change. These phenomena are leading to economic and social problems. Although the rapid pace of aging in Japan and its pending economic consequences have captured the attention of Japanese policy makers, little is being done as of yet to remedy the situation.
Because such a large portion of the current generation is going into retirement, the number of retirees is out numbering the incoming new workers. This is going to inevitably strain the economy as the government struggles to provide pensions. In addition, a smaller labor force means less tax money available for the government to take care of its citizens. Yet another effect of the aging population will be the shrinking number of Japanese consumers. Since consumer spending comprises two thirds of Japan's gross domestic product or GDP, this is sure to have a stark impact on the Japanese economy.
Over the past couple of decades Japan has experienced a significant decrease in the population. Declining birth and death rates are the major reasons why Japan is seeing this change. These phenomena are leading to economic and social problems. Although the rapid pace of aging in Japan and its pending economic consequences have captured the attention of Japanese policy makers, little is being done as of yet to remedy the situation.
