CASE STUDY: JAPAN – IMPACT OF AN AGEING POPULATION
CHECK YOUR LEARNING
Study Figure 25.19. List one change in each of the population sectors between 1950 and 2010.
1. 0–14 2. 15–64 3. 65+
Fig. 25.19 Population pyramids Japan 1950–2050.
1950
100+ 90 80 70 60 50 40 30 20 10 0
Males 4.9% 59.6% 65 and over 15−64 23.1% 63.7% 2010* Females 39.6% 51.8% 2050 (projection) 35.4% 6 4 2 Millions 0−14 0 2 4 6 6 4 2 13.2% 0 2 4 6 Millions 6 4 2 Millions KEYWORDS
life expectancy economic impact
government finances
government expenditure labour shortages dependency ratio automation technology
In 2017, Japan had an average life expectancy of 87 years, and 28% of the population were aged over 64. By 2050, estimates suggest that will increase to 40% of the population. Genetic, social and lifestyle factors along with diet and high standards of living all account for increased life expectancy.
Economic impacts zz
zz zz zz 8.6% 0 2 4 6
100 90 80 70 60 50 40 30 20 10 0
The funding of pensions places huge demand on government finances and has led to increased public debt.
The cost of nursing homes, home-care services and health workers increases government expenditure.
Labour shortages exist in all sectors of the economy – Tokyo has almost twice as many job vacancies as applicants.
Increased dependency ratio: in 2016, every 100 workers supported 65.29 dependents. This is up from 43.56 in 1990.
Responses zz
Government policies aimed at increasing birth rates include a variety of financial supports, shorter working hours and an overtime limit of 24 hours a month.
zz
Automation: There is increasing use of robots in factories to cope with the declining labour force (Fig. 25.20).
