Japan’s Aging Problem in One Chart

Japan’s Aging Problem in One Chart

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Japan’s population aged 65 and over has reached an all-time high of 36 million, accounting for 29.3% of the total population. With such a large portion at retirement age, the country faces the challenge of maintaining its workforce capacity.

This graphic visualizes Japan’s population aged 65 and over compared to the total population from 1950 to 2045 forecasts, based on data compiled by the Statistics Bureau of Japan.

Half of Japanese Companies Report Employee Shortages

Japan has the world’s highest proportion of the population aged 65 and over. While the country’s population has been declining, the proportion of older citizens continues to grow and is projected to reach 34.8% by 2040.

As the population ages, Japan’s labor force is expected to shrink significantly. A recent research note from Morgan Stanley’s Robert Feldman estimates that, based on past demographic trends, the labor force could decline from approximately 69.3 million in 2023 to around 49.1 million by 2050.

Currently, 51% of companies in Japan report a shortage of full-time employees.

To address this issue, Japan has implemented immigration programs to attract skilled workers. In 2024, a record 2 million foreign workers were employed in Japan, with plans to add up to 800,000 more over the next five years.

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