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Japan may face a shortage of more than 11 million workers by 2040, a study has found, underscoring the economic challenges the nation faces as its population ages rapidly.
The working age population is expected to rapidly decline from 2027, according to the study by independent think-tank Recruit Works Institute, published Tuesday. The worker supply is expected to shrink by about 12 percent in 2040 from 2022, even as labour demand remains steady, the report said.
Prime Minister Fumio Kishida has made reversing Japan’s declining birthrate a priority for his government, as he warns of societal collapse as the number of babies born hits a new low. He has also pledged about ¥1 trillion ($7.6 billion) to training workers for more high-skilled jobs in the next five years.
Still, the nation of 126 million is already starting to feel the strain, with the working-age population expected to shrink by 20 percent from 2020 to 59.8 million by 2040, according to the report.
Kishida is already seeking ways to address a serious shortage of truck drivers expected by next year. The study also warns shortfalls are likely to become acute in labor-intensive sectors like transportation and construction, as well as health care due to growing demands from an aging population.
Japan’s relative decline in global economic standing and a similar aging crisis around the world means that boosting immigration is not the most viable solution over the long-term, the study led by chief researcher Shoto Furuya said. — Bloomberg.
Online Reporter