Economic factors

Economic factors have played a significant role in Japan's shrinking population. Japan has experienced a long period of economic stagnation since the 1990s, which has led to a decrease in job opportunities and wages, especially for young people. This has made it harder for young people to start families and afford the costs of raising children, which has contributed to a decline in the country's birth rate.

Additionally, Japan's aging population has put a strain on its social welfare system, which has increased the financial burden on younger generations. With fewer young people entering the workforce and paying taxes, it has become increasingly difficult to sustain the current levels of social welfare and pension benefits.

Furthermore, Japan's economy has also been affected by its low immigration rates, which have limited its ability to address its shrinking workforce. Despite recent efforts to attract foreign workers, Japan's strict immigration policies and cultural barriers have made it difficult to attract and retain foreign talent.