Japan’s ageing population and low birth rate are fuelling fears of a population slump over the coming years.

Japan is about to experience demographic change on an unprecedented scale.

The birth rate has been falling steeply for half a century. In the early 1970s it passed the replacement level of 2.1 births per woman and in 2005 hit a record low of 1.26.

That same year, the population began to shrink. Forecasters say that, based on current trends, it will fall more than 20% by 2050.

But the Japanese, already famed for their longevity, are also living longer. In 2006, the average life expectancy was 82.

Japan has the world’s highest proportion of elderly people. More than 20% of the population are now over the age of 65. By 2050, that figure is expected to rise to about 40%.

It is an issue that “will not only have an impact on economic, industrial and social security issues, but … is intertwined with the very existence and viability of Japan as a country”, the Policy Council for Declining Fertility wrote in a report.

A low number of babies now points to a shortage of workers in the future. In 2000, two-thirds of Japan’s population were between the ages of 15 and 64. By 2050, that figure will be around the 50% mark.

To combat the problem the government is offering cash handouts to try and encourage couples to have more children.

Via BBC