Japan's population fell to 120.3 million as of October 2024, official data showed on Monday, marking a record fall of 898,000 people from the previous year.
Japan's birth rate is among the lowest in the world, a trend which has meant having a shrinking workforce, fewer consumers and businesses fighting to recruit workers.
It was the largest fall on record since the government began collecting comparable data in 1950, according to the internal affairs ministry.
The government has been trying to offer assistance to young families who wish to have children but feel they cannot due to economic reasons, said Chief Cabinet Secretary Yoshimasa Hayashi.
"We understand that the declining birthrate is continuing because many people who wish to raise children are not able to fulfil their wishes," he said during a regular media briefing on Monday.
Japan's population, including foreign nationals, also fell by 550,000 people to 123.8 million, the 14th straight annual fall, as the country has failed to effectively address its chronic population decline, AFP reported.
Many young people in Japan are delaying getting married and having children for a variety of reasons, ranging from fragile job security to changing social values that put less emphasis on marriage.
Japan has turned to young foreigners as a source of labour, but the government has maintained a strict immigration policy, only letting in foreign workers temporarily.
The government is trying to raise wages for young people while also offering child-rearing assistance, said Hayashi.
"We will promote comprehensive measures to realise a society where everyone who wishes to have children can have children and raise them with peace of mind," he said.
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