Japan has faced a significant decline in birth rates for a decade, with the most recent statistics indicating that only 705,809 babies were born in 2025, marking a 2.1% decrease from the previous year. This persistent trend poses serious challenges for the country's Prime Minister Sanae Takaichi and underscores the demographic issues that Japan has been grappling with, including an aging population and shrinking workforce.

In addition to the falling birth rate, marriage rates in Japan saw a slight increase with 505,656 couples tying the knot, which is a 1.1% rise, while divorce rates decreased by 3.7% to 182,969 cases. These statistics suggest that while fewer children are being born, there may be an encouraging sign of stability in relationships, albeit amidst a broader demographic crisis. The overall population of Japan is estimated to be 122.86 million, reflecting a decline of 0.47% from the previous year as the country grapples with the challenges of an ageing demographic.

Japan’s low birth rate is one of the lowest in the world, contributing to significant socio-economic implications, such as labor shortages which hinder economic growth, increasing pressure on social security systems financially as fewer workers are available to support an ageing populace. Policymakers are now tasked with finding effective solutions to counter this trend and maintain economic stability, as the implications of a continuous drop in birth rates could lead to a less resilient economy in the long term.