The workforce in 2040 is projected to be 20 percent smaller than in 2017 due to overall population decline if the economy sees no growth and women and the elderly continue to have difficulty landing jobs, according to government study released Tuesday.

A study group of the labor ministry, releasing the first official projection for the size of Japan's workforce in 2040, called for additional policies to boost employment and promotion of artificial intelligence as measures to sustain productivity.

The study did not take into consideration the expansion of the foreign workforce in 14 fields, including construction and nursing care, from April this year.