The government has been grappling with a low birthrate for 20 years, but experts say the Hatoyama administration must step up the game if Japan is to maintain a leading role on the international stage.
The nation is falling behind other developed countries in encouraging women to have children by helping them combine work and child-rearing, according to observers.
Experts say the low birthrate will reduce the working-age population, leading to a decline in production and economic growth. This in turn will make Japan less competitive in the global economy, they say.