Over the last decade, Japan’s population has aged more and more, to the point where more than a quarter of Japanese were 65 years and older in 2022. Population growth has stopped and even reversed, since it’s been in the red for several years now.

It’s getting old

With almost 30 percent of its population being elderly inhabitants, Japan is considered the “oldest” country in the world today. Japan boasts a high life expectancy, in fact, the Japanese tend to live longer than the average human worldwide. The increase of the aging population is accompanied by a decrease of the total population caused by a sinking birth rate. Japan’s fertility rate has been below the replacement rate for many decades now, mostly due to economic uncertainty and thus a decreasing number of marriages.

Are the Japanese invincible?

There is no real mystery surrounding the ripe old age of so many Japanese. Their high average age is very likely due to high healthcare standards, nutrition, and an overall high standard of living – all of which could be adopted by other industrial nations as well. But with high age comes less capacity, and Japan’s future enemy might not be an early death, but rather a struggling social network.

Japan JP: Population: as % of Total: Female: Aged 65 and Above data was reported at 29.934 % in 2017. This records an increase from the previous number of 29.446 % for 2016. Japan JP: Population: as % of Total: Female: Aged 65 and Above data is updated yearly, averaging 13.229 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 29.934 % in 2017 and a record low of 6.270 % in 1960. Japan JP: Population: as % of Total: Female: Aged 65 and Above data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Japan – Table JP.World Bank.WDI: Population and Urbanization Statistics. Female population 65 years of age or older as a percentage of the total female population. Population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship.; ; World Bank staff estimates based on age/sex distributions of United Nations Population Division's World Population Prospects: 2017 Revision.; Weighted average; Relevance to gender indicator: Knowing how many girls, adolescents and women there are in a population helps a country in determining its provision of services.

This paper explores how Japan’s aging population impacts the politics of monetary policy. Previous research suggest that the elderly have a variety of distinct policy preferences. Given that elderly voters also have higher voting rates, the rapid greying of the population could have significant effects on distributive struggles over economic policy across much of the developed world. In Japan, aging is advancing rapidly, and the central bank has engaged in massive monetary stimulus to induce inflation, which existing work suggests the elderly should oppose. Analyzing results from three surveys, this paper has three central findings: (1) the elderly tend to have higher inflation aversion, (2) the elderly display some opposition to quantitative easing (QE), and (3) despite such policy preferences, the concentration of elderly in electoral districts has no significant effect on the preferences either of legislative incumbents or candidates. The third finding is attributable to the fact that elderly opposition to quantitative easing is moderated by their partisan identification. Elderly Liberal Democratic Party voters have systematically lower opposition to quantitative easing, likely reflecting that these voters have aligned their preferences with the LDP’s policies.

Japan JP: Population: as % of Total: Male: Aged 0-14 data was reported at 13.548 % in 2017. This records a decrease from the previous number of 13.597 % for 2016. Japan JP: Population: as % of Total: Male: Aged 0-14 data is updated yearly, averaging 20.224 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 31.420 % in 1960 and a record low of 13.548 % in 2017. Japan JP: Population: as % of Total: Male: Aged 0-14 data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Japan – Table JP.World Bank: Population and Urbanization Statistics. Male population between the ages 0 to 14 as a percentage of the total male population. Population is based on the de facto definition of population.; ; World Bank staff estimates based on age/sex distributions of United Nations Population Division's World Population Prospects: 2017 Revision.; Weighted average;

Population ages 65 and above (% of total population) in Japan was reported at 29.56 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Japan - Population ages 65 and above (% of total) - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

In 2023, the total population in Japan slightly decreased to just below 125 million people compared to the previous year, with the female population reaching around 63.9 million, as compared to 60.5 million men. The oldest population in the world  Japanese society is facing severe demographic problems such as decreasing birthrates, remaining under one million births annually recently, and a thereby aging population. The country’s average age lies at around 48 years, making its population the oldest in the world. Elderly people aged 65 years and older accounted for about 29 percent of the population in 2023. According to a forecast, the age group 65 years and older would make up approximately 39 percent of the Japanese population by 2070. Challenges with the demographic shift The rapid aging of the society poses significant economic and sociopolitical challenges to the country, as the workforce will continue to shrink while increasingly more elderly will receive long-term support. Currently, close to seven million Japanese require long-term care, leading to national benefit expenses of over 14 trillion yen annually, including in-home and community-based services.

Japan JP: Population: Female: Aged 0-14 data was reported at 7,950,363.000 Person in 2017. This records a decrease from the previous number of 7,993,231.000 Person for 2016. Japan JP: Population: Female: Aged 0-14 data is updated yearly, averaging 11,629,233.000 Person from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 13,688,228.000 Person in 1960 and a record low of 7,950,363.000 Person in 2017. Japan JP: Population: Female: Aged 0-14 data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Japan – Table JP.World Bank.WDI: Population and Urbanization Statistics. Female population between the ages 0 to 14. Population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship.; ; World Bank staff estimates using the World Bank's total population and age/sex distributions of the United Nations Population Division's World Population Prospects: 2017 Revision.; Sum; Relevance to gender indicator: Knowing how many girls, adolescents and women there are in a population helps a country in determining its provision of services.

Age dependency ratio (% of working-age population) in Japan was reported at 70.1 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Japan - Age dependency ratio (% of working-age population) - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

Graph and download economic data for Infra-Annual Labor Statistics: Working-Age Population Total: From 15 to 24 Years for Japan (LFWA24TTJPA647S) from 1968 to 2024 about 15 to 24 years, working-age, Japan, and population.

Graph and download economic data for Age Dependency Ratio: Older Dependents to Working-Age Population for Japan (SPPOPDPNDOLJPN) from 1960 to 2023 about 64 years +, working-age, ratio, Japan, and population.

This data package includes the underlying data to replicate the charts, tables, and calculations presented in Managing an aging society: Learning the right lessons from Japan, PIIE Working Paper 25-4.

If you use the data, please cite as:

Kirkegaard, Jacob Funk. 2025. Managing an aging society: Learning the right lessons from Japan. PIIE Working Paper 25-4. Washington: Peterson Institute for International Economics.

Shrinking cities due to low birthrates and aging populations represent a significant urban planning issue. The research question of this study is: which economic, social, and educational factors affect population decline in Japanese shrinking cities? By modeling shrinking cities using the case of Japanese cities, this study aims to clarify the indicators that affect the population change rate. The study employed Bayesian network analysis, a machine learning technique, using a dataset of economic, social, and educational indicators. In conclusion, this study demonstrates that social and educational indicators affect the population decline rate. Surprisingly, the impact of educational indicators is more substantial than that of economic indicators such as the financial strength index. Considering the limitations in fiscal expenditures, increasing investment in education might help solve the problem of shrinking cities because of low birthrates and aging populations. The results provide essential insights and can function as a planning support system.

In 2024, about 93.7 percent of men aged 45 to 54 years in Tokyo Prefecture in Japan were employed. The employment rate of men aged 65 years and older declined to 35.2 percent.

japan - Age Dependency Ratio: Older Dependents to Working-Age Population for Japan was 50.28468 % of Working-Age Population in January of 2023, according to the United States Federal Reserve. Historically, japan - Age Dependency Ratio: Older Dependents to Working-Age Population for Japan reached a record high of 50.28468 in January of 2023 and a record low of 49.74398 in January of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for japan - Age Dependency Ratio: Older Dependents to Working-Age Population for Japan - last updated from the United States Federal Reserve on June of 2025.

In the fiscal year 2021, medical care expenses under the health insurance system for advanced elderly people in Japan amounted to approximately 17 trillion Japanese yen, about a three trillion yen increase compared to fiscal 2012. Every Japanese citizen above 75 years old is withdrawn from general health insurance and entitled to join the health insurance for advanced elderly operated by municipalities in Japan.

Graph and download economic data for Employed Population: Aged 15-64: Females for Japan (LFEM64FEJPQ647N) from Q1 1968 to Q4 2022 about females, 15 to 64 years, Japan, and employment.

As of March 2023, around 19 percent of primary insured people in the long-term care insurance (LTCI) system in Japan required nursing care or support for daily activities. The primary insured people under the system are those aged 65 years and older. In recent years, there were around 36 million people in this category in the nation. This indicates that about 81 percent of those people were healthy and not bedridden. The Long-term Care Insurance System The LTCI system in Japan was established in 2000 to provide benefits and services for people who require long-term care. Japanese central and prefectural governments, as well as municipalities, cover half of the system’s cost. As the other half of the budget is financed by insurance premiums, all people in Japan aged 40 and older must join the LTCI system and contribute to the premium. Healthy seniors Japan’s population is aging and shrinking at the same time. Therefore, healthy and not bedridden people aged 65 years and older are gaining importance in its society. The age cohort is anticipated to, for example, offset the labor shortage in the nation. Since households with senior members generally have higher net savings than households with younger members, the Japanese economy will depend increasingly more on the spending power of the senior citizens.

Graph and download economic data for Working Age Population: Aged 15-74: Males for Japan (LFWA74MAJPQ647N) from Q1 1978 to Q3 2021 about 15 to 74 years, males, and Japan.

In 2023, residents aged 65 years and above made up 17.3 percent of the total resident population in Singapore. Singapore is currently one of the most rapidly aging societies in Asia, along with Japan. The elderly in Singapore Improvements in healthcare and the standard of living over the years have contributed to an increase in life expectancy in Singapore. This was reflected in the decreasing death rate of elderly residents over the decades. The increase in the share of the elderly population was further compounded by a decreasing total fertility rate, which was well below the 2.1 needed for a balanced population. By 2050, the elderly population in Singapore was forecasted to be a third of its total population. Economic burden of an aging society Singapore thus faces significant economic challenges due to an increasingly elderly population. The number of elderly dependents to the working age population had been steadily increasing. As Singaporeans face the prospect of living longer, more and more elderly had chosen to return to work after retirement. Singapore society still places the responsibility of caring for the elderly on younger family members. However, the burden of care is expected to increase with the years, and whether this model is sustainable remains to be seen.

As of 2023, Italy had the highest unemployment rate of the G7 countries, reaching 7.6 percent. Especially in Canada and the United States, the unemployment rate rose sharply in 2020 due to the COVID-19 outbreak. Japan had the lowest unemployment rate at just 2.6 percent. Slowed growth of the Japanese economy and society While Japan had the lowest unemployment rate, it also experienced a slow wage growth. Wages in Japan are known to be stagnant, with many workers going years without experiencing any wage growth in their roles. One contributing factor to its low unemployment rate is its shrinking population. As the population continues to decrease, there is less competition for work. However, this introduces other problems for Japanese society, as it also has a rapidly aging population that requires long-term care. Unemployment in Italy: The divide between Northern and Southern Italy Not only does Italy have the highest unemployment rate out of the G7, but it has the second-highest unemployment rate of Europe's largest economies. Furthermore, Italy has significant levels of youth unemployment, with the majority of youth unemployment lying within southern regions of the country. The economic divide between Northern and Southern Italy is significant, and can be attributed to differences in industralization and economic diversification. The prominence of this divide has had wider impacts on Italian politics and society.