Japan's Facing Social Challenges: Rapidly Aging Population
By 2025, Japan's population is projected to be approximately 124.3 million, a decrease of over 550,000 from the previous year—a record drop. Those aged 65 and over comprise 30% of the total population, meaning roughly one in three people is elderly, while the working-age population (15-64 years old) accounts for only 60%.
These figures make Japan resemble an aging tree with increasingly sparse leaves. With a large elderly population, a small young population, and a low birth rate—in 2024, the average Japanese couple had only 1.15 children, far below the 2.1 needed to maintain a stable population—this aging population slows down consumption growth, making the economy extremely difficult to operate, and leading to a sluggish consumer market. Since the 1990s, Japan's economy has stagnated, with the elderly becoming the main consumers. However, they primarily buy health products and daily necessities, while novelties appealing to younger generations are scarce. Businesses lack innovation, and the economic growth rate has hovered around 1% for years.
Japan's population aged 65 and over has reached a record high of 36.25 million. Facing a labor shortage, Japan relies heavily on the elderly and immigrants to fill the gap. Many seniors continue to work, and the number of employed people aged 65 and over is projected to reach 9.3 million in 2024, marking 21 consecutive years of growth. The costs of elderly care and medical treatment are substantial, making it difficult for many to survive without working.
In the 65-69 age group, over half are still working, demonstrating a remarkably high labor force participation rate. Elderly individuals are a common sight in convenience stores, restaurants, and taxis. The pressure on social security for elderly care is immense; hospitals are short-staffed with doctors and nurses, leading to a decline in service quality.
Nursing home beds are scarce, with waiting lists of several years becoming the norm. Economically, the proportion of elderly care and medical expenses in GDP is increasing, while tax revenue is shrinking, placing immense pressure on government finances.
This is not just a matter of numbers; it involves the real difficulties faced by countless families. The elderly want a peaceful life, so they have to grit their teeth and keep working. The young people are under immense pressure, and the desire to have children disappears, resulting in them sinking deeper and deeper into trouble.