Aging Populations: The Case Study of Japan

Aging Population: The percentage of a country’s population aged 65 and over

(65+). Populations in these age groups are classified as dependents because they do not
work and they rely on others for the goods and services they consume. A large aging
population can put economic pressure on a country, particularly through the cost of
pensions and health care.

Japan is an island in East Asia. It is surrounded by the Sea of Japan and the Pacific Ocean. The 5
main islands of Hokkaido, Honshu, Kyushu, Shikoku, and Okinawa span more than 3000km in
length. Two thirds of the country is mountainous and heavily forested terrain. Over 90% of the
population live in urban areas on thin, flat coastal strips. The capital city Tokyo and surrounding
area is home to more than 38 million people. Japan’s tectonic setting results in hazards such as
earthquakes, volcanic eruptions, and tsunamis.

Total Population 124,687,000 (world

ranking: 11th)

Birth Rate 7 per 1000 per year

(world ranking:226th)

Death Rate 11.4 per 1000 per year

(world ranking: 34th)

Life expectancy 86 years

Infant mortality 1.92 deaths per 1000 live

births (world ranking:
226th)

Fertility Rate 1.38 (world ranking:

214th)

GDP per Capita $42,900 (world ranking:

42nd)

Dependency Ratio 69

Youthful Population 12.5%

(0-14)

Aging Population (65 29.2%

and over)

Literacy rate 99%

Mean Years of 15 years

Schooling

Main export Motor Vehicles

Religion Shinto and Buddhism

Japan’s Aging Population: Fact File
• Japan’s population is aging faster than any other country on the planet.

• 26% of the population are over 65. This will increase to around 40% by 2050.

• The number of Japanese people aged 65 or over nearly quadrupled over the last
forty years.

• Japan’s population began to decline in 2011. It is predicted to drop to from 125

million today to 97 million by 2050 (24% lower).

• The sales of adult diapers now surpass the sales for babies’ diapers.

The Causes of Japan's Aging Population

ACTIVITY: Categorise the boxes below into:

a) Reasons for falling fertility (birth rates)
b) Reasons for increased life expectancy (longevity)

A A B
A
Strong gender differences
Retirees in Japan stay Men are increasingly
in attitudes to housework
Currently, there are more active, and many older reluctant to marry because it
and childcare make would add complications to
marriage unattractive for women working in Japan people continue working
their lives and put stress on
Japanese women. than ever before. by choice.
their finances.

A
B B B

The Japanese diet is

Japan has a high quality Peace and prosperity
characterised by high
education system. 41% of Universal health insurance following WWII resulted in
consumption of vegetables,
the population have was introduced in 1961 huge economic growth and a
fish, and soybean products
alongside nationwide dramatic increase in health
university degrees. and low calorie and animal fat
vaccination programmes. care spending.
intake.

B A A A

Culturally, the Japanese Japan is one of the hardest The average age of a
working nations. 60% of
are health conscious. bride on her wedding day The average cost of
women say they cannot relax
Many have regular and has increased from 23.9 raising a child in Tokyo
and are not interested in
thorough physical wasting time to pursue love years in 1955 to 29.4 years now ranges from
examinations. relationships. today. $260,000 to $574,000.
The Impacts of an Aging Population

THE JAPANESE STAR

AGING CRISIS AHEAD!

Family Pressures Economic Uncertainty

The Japanese government continues to face a
growing aging population crisis. Rising life
expectancy and falling birth rates are creating
the perfect storm. An extra 320,000 over 65s
are added to Japan’s population every year.
This is starting to apply extreme pressure on
traditional family structures. Three-generation
households, where a married couple cares for
both their own children and their elderly
parents, are encouraged by the government. It
can be extremely stressful to work full time and
care for younger and older generations.
Around 100,000 workers leave their jobs each
year to provide family care.
The elderly who are not supported by their
families are often left alone and isolated. Every
year thousands of deaths go unnoticed for
days or even weeks in a modern phenomenon
known as Kodoku-Shi "solitary death".
The growing elderly population is having a
major impact on the economy and
government spending.
The dependency ratio in Japan is currently
64 and rising. This puts great strain on the
economically active. They are asked to work
longer, pay more tax, and receive smaller
pensions. In 1970 the cost of pensions, health Ageing Opportunities
and welfare amounted to around 6% of
national income. Today it is over 20%. Japan By being adaptable, both businesses and politicians can
has the highest public debt in the world. benefit from an aging population. The over 65s have a
lifetime of savings that can be unlocked by innovative
Japan is facing a labour shortage with 125 businesses. This untapped wealth is called the ‘grey yen’.
jobs for every 100 job seekers. This is severe Leisure, tourism, high-tech gadgets, and cosmetics are
for certain industries that are unattractive to seeing growth in sales.
younger generations such as agriculture and
construction. Politicians who also adapt to provide policies for the
elderly are likely to be rewarded with the ‘grey vote.’
Every year Japan closes 400 schools, and the Japanese politicians are rebranding the country as an
size of the military is declining. The Japanese ‘age-free society.’
Self-Defense Force has not been able to
meet its recruitment quotas since 2014.

ACTIVITY: Quick 10. Read the newspaper article and answer the questions below.
1. How many extra people aged 65 and above are added to the population each
year?
320,000
_______________________________________________________

2. What is a three-generation household?

It is a household where the Grandparents, Parents and Children live under one
_______________________________________________________
roof. Traditionally the Parents are the income earners for the household.

3. What do the Japanese call the phenomenon of an increasing number of elderly

people dying alone and isolated? Koduku Shi

_______________________________________________________
4. Why are the economically active in Japan under so much pressure?
Because they have to pay to support their parents, and children if they have them. If a family has 2 children to support they are paying for 4 dependents which
_______________________________________________________
causes an economic pressure to perform.

5. Complete the sentence. Japan has the highest _______

Public Debt in the world.
6. Name 2 industries that are suffering from severe shortages of labour.
Agriculture/Construction
_______________________________________________________
7. When was the last time that the Japanese military was able to meet its quota for
new recruits?
_______________________________________________________
2014

8. What is the ‘Grey Yen’?

Untapped wealth
 _______________________________________________________
9. What has been the growth in the percentage of national income spent on pensions,
health care and welfare between 1970 and today?
_______________________________________________________
20%

10. How are Japanese politicians rebranding the elderly population and why are they
doing this?
_______________________________________________________
They are appealing to the elderlyy to get the untapped grey vote

_______________________________________________________

Challenge question
Select a number from 1 to 8 to reflect your viewpoint. Justify your choice.

‘The economic impacts of the aging population in Japan are extremely negative’.

DISAGREE NEUTRAL AGREE

1 2 3 4 5 6 7 8

_____________________________________________________
At the moment they are having negative impacts but there is room for possible growth. They arent extremely negative because there is a
_____________________________________________________
way to maximize benefits and support the japanese economy. Its all about adaptation. It is not extremely negative.

_____________________________________________________
_____________________________________________________
_____________________________________________________

‘It is a good idea to keep the elderly in the family home so that they can be cared
for by their own family and loved ones’.

DISAGREE NEUTRAL AGREE

1 2 3 4 5 6 7 8

_____________________________________________________
I do not feel very strongly about this issue because there is the medical necessity for protection but I think the goal should
_____________________________________________________
be self sufficiency so that people can be self sufficient in society and reduce the strain on the other people in the
household.

_____________________________________________________
_____________________________________________________
_____________________________________________________
Aging Populations: Solutions
ACTIVITY: Read through some of the possible solution. Use these to answer the
discussion points below.

Raise fertility by encouraging people to have more babies. Make pre-school free for children aged 3-5 and
make childcare free for poorer families. Provide an extra 500,000 day care places.

Aim to boost productivity in the workplace and make work accessible for all. Introduce new laws that will
prevent discrimination against pregnant women in the workplace. Give longer maternity leave to men and
women (up to 1 year of leave) and guarantee their return to work after this period.

Raise the retirement age. The age that Japanese receive the pension raised from 60 to 65 in the 1980s. The
UN population division recommends raising this further to 77 years of age.

Relax immigration rules. Currently, 2.7 million or 2% of the population are from overseas. Aim to increase the
percentage of foreign workers to at least 8%. Target skilled migrants to fill jobs in certain areas of the economy
such as elderly care, construction, and farming.

Improve elderly care. Spend 2 trillion yen ($18 billion) raising wages for workers at elderly homes and day care centres.

Use data, artificial intelligence, and technology to support the elderly to live independently at home for longer.
Ideas include an artificial intelligence wheelchair, a convertible bed, and body sensors for bath and bed.

Introduce government sponsored speed dating events so that young Japanese can meet and fall in love.

Discussion points
Which of the suggested solutions should be started immediately? Why?
They should relax immigration rules so that more overseas workers can come there is a demonstrated motivation. They need to
_____________________________________________________
figure out how to import workers in a way

_____________________________________________________
Which solution will have the greatest impact in the short term (over a few months or
years)? Raising the retirement age

_____________________________________________________
_____________________________________________________
Which solution will take a long time before the positive impact is felt (many years or
decades)? speed dating or supporting
relationships and
_____________________________________________________
encouraging child care

_____________________________________________________
Which solution will only have a limited impact?
Boosting population
_____________________________________________________
_____________________________________________________
If you could only introduce one solution, which one would you choose? Why?
More overseas workers because it adds to the

_____________________________________________________
people coming in.

_____________________________________________________