October 21, 2025

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Japan’s population fell by more than 900,000 people last year, marking the steepest annual decline since records began, according to government data released this week.

The latest figures from Japan’s Ministry of Internal Affairs show the total population dropped to around 124 million, underscoring the deepening demographic crisis confronting the world’s third-largest economy. The decline reflects a combination of record-low birth rates, a rapidly aging population, and limited immigration levels.

Officials have warned that the population downturn could intensify over the next decade, leading to labor shortages, shrinking tax revenues, and rising social welfare costs. Efforts by Tokyo to encourage childbirth through financial incentives and expanded childcare access have so far failed to reverse the trend.

Prime Minister Fumio Kishida has called population decline the country’s “most pressing national challenge,” vowing stronger policy measures to stabilize demographics and sustain economic growth.

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