Japan's population started shrinking this year, according to two separate reports by the Health, Welfare and Labor Ministry and the Internal Affairs and Communications Ministry. The shrinkage began one year earlier than the National Institute of Population and Social Security Research had projected.
A continuing population decline will have a strong impact on the nation's economy and on social security resources. The government should not lose any more time in developing effective measures to create a social environment that is friendly toward working and raising children. The government reports serve as a strong reminder that various measures taken since 1990 to give people incentives to have babies have not worked well.
Based on preliminary data up to October, the health ministry estimates a record low 1,067,000 births for all of 2005, 44,000 fewer than in 2004. This compares with an estimated 1,077,000 deaths, up 48,000 from 2004. Thus an estimated 10,000 fewer births than deaths are expected this year. Deaths include those of many elderly people who died of flu between January and March.