Japan's population shrinks to 123 million: Tokyo and Okinawa alone grow

8 articles·7 sources·updated 8 days ago·View in graph
asiabusiness & finance

Japan’s population has fallen to 123 million, marking the sharpest five-year decline on record, according to the Internal Affairs Ministry. Only Tokyo and Okinawa saw population growth among the country’s 47 provinces, with final data expected by September .

The decline reflects broader demographic pressures, including strict visa policies that have forced the closure of foreign-owned small businesses and restaurants, exacerbating labor shortages in sectors already struggling with an aging workforce . While Tokyo’s population continues to rise, the capital’s growth masks accelerating depopulation in rural prefectures, where shrinking tax bases and dwindling services threaten long-term viability.

Japan’s demographic crisis mirrors trends in other advanced economies, though its pace is unmatched. The country’s fertility rate remains below replacement level, and immigration—though increasing—has not offset natural decline. Officials warn that without aggressive policy shifts, including expanded labor migration and family support measures, the population could fall below 100 million by 2050. The government has yet to announce concrete steps to reverse the trend, but economists argue that Tokyo’s continued dominance as a regional hub may further hollow out peripheral regions.

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