Jakarta, CNBC Indonesia – Japan now in a precarious situation and threatened with crisis. This was even conveyed by Prime Minister (PM) Fumio Kishida earlier this week.
This is not without reason. The warning was issued because of the threat to the country’s population.
“Japan is on the verge of being unable to maintain social functions due to declining birth rates,” he said in a speech before the legislature, quoted from CNN InternationalWednesday (25/1/2023).
Therefore, Kishida added, he wants parliament to support the government to double its spending on child-related programs. It is known, a government agency will be formed in April to focus on this issue.
“Regarding the sustainability and inclusiveness of our nation’s economy and society, we need to place childcare support as the most important policy,” he emphasized.
“It is important to solve the problem, it’s now or never. A resolution cannot wait any longer,” he added.
Japan is actually a country with the highest life expectancy in the world. As of 2020, government data says nearly one in 1,500 people in Japan is 100 years old or older.
However, that fact has fueled a growing demographic crisis. With society aging rapidly, the workforce has dwindled and there aren’t enough young people to fill the gaps in a stagnant economy.
Japan is a country with the lowest birth rate in the world. The Ministry of Health estimates there will be fewer than 800,000 births in 2022, the first time since records began in 1899.
Experts point to several factors behind the low birth rate. The high cost of living in this country is one reason.
Not to mention the limited space, and the lack of childcare support in cities. That made it difficult for parents to raise children, which meant fewer and fewer couples had children.
Attitudes toward marriage and starting a family have also changed in recent years. More and more couples are putting both of them on hold during the pandemic.
Some point to the pessimism of young people in Japan about the future. There is frustration with work pressure and economic stagnation.
Meanwhile, Japan’s economy has been stalled since its renaissance in the early 1990s. The country’s GDP growth slowed from 4.9% in 1990 to 0.3% in 2019.
Meanwhile, the average annual real household income decreased from 6.59 million yen in 1995 to 5.64 million yen in 2020.
To address this, Tokyo has launched various initiatives, including new policies to improve child care services and improve housing facilities for families with children. Some rural towns have even started paying couples who live there to have children.
Next Article
Shh… ‘Enemy in a Blanket’ Haunts Japan’s Economy, What’s That?
(sef/sef)
