August 12, 2025
Japan’s Record Population Decline and the Rising Role of Foreign Residents
Since peaking in 2009, Japan’s population has contracted by more than 6.4 million. Births hit a historic low of 687,689, while deaths surged to a record 1.6 million, highlighting the widening gap caused by “natural attrition.”
Key Data at a Glance
| Indicator (2024) | Figure | Note |
|---|---|---|
| Total Japanese population | 120.65 million | –908,574 YoY, 16th consecutive decline |
| Peak population (2009) | 127.07 million | –6.42 million over 15 years |
| Births | 687,689 | Lowest on record |
| Deaths | 1,599,850 | Highest on record |
| Foreign residents | 3.68 million | +354,089 YoY, record high |
| Foreign share of total pop. | 2.96% | +0.3 point from previous year |
| Total population (incl. foreign) | 124.33 million |
Foreign Residents Drive Growth
While the Japanese population declines, foreign residents are proliferating. The number rose 11% year-on-year, surpassing 3.5 million for the first time. Tokyo and Chiba were the only prefectures to record overall population growth, largely supported by inflows of foreign workers.In the regions, foreign labor is essential. Imabari, Ehime Prefecture, a hub for shipbuilding, has publicly stated that operations would be unsustainable without foreign workers. The city has launched a “Multicultural Coexistence Promotion Office” to provide consultation services for foreign residents.
In Kembuchicho, Hokkaido, Southeast Asian workers are active in farming and welfare services, while in Aguni Village, Okinawa, seasonal staff from abroad are recruited for sugar factories. These examples show how rural economies increasingly depend on foreign labor to remain viable.
Integration and Social Tensions
The demographic shift is not without challenges. Kawaguchi City, Saitama Prefecture, where nearly 8% of residents are foreign nationals, has seen social concerns arise over crime and traffic violations. In response, the city plans to expand multilingual support, such as tablet-based translation services at municipal counters, starting in FY2025.Business Implications
For companies and municipalities, the numbers highlight two simultaneous realities: a shrinking domestic workforce and an expanding pool of foreign talent. Businesses reliant on labor-intensive industries—shipbuilding, agriculture, and manufacturing—are increasingly turning to foreign workers as a structural necessity. At the same time, municipalities are under pressure to manage integration carefully to avoid social friction.Japan’s future competitiveness will hinge not only on addressing its declining birthrate but also on how effectively it embraces and integrates a more diverse population.
