Prime Minister Fumio Kishida said the period to 2030 is the “last chance” to reverse a declining birthrate that threatens Japan’s long-term economic prospects, as he rolled out policies aimed at easing financial burdens on parents.
(Bloomberg) — Prime Minister Fumio Kishida said the period to 2030 is the “last chance” to reverse a declining birthrate that threatens Japan’s long-term economic prospects, as he rolled out policies aimed at easing financial burdens on parents.
Kishida told a news conference Friday his government plans to enhance childcare allowances, provide housing assistance for young families raising children, work to reduce the costs of education and raise wages for younger workers.
“The declining birthrate problem is a fight against time,” Kishida said. He added men needed to do more in helping to raise children. His government was looking to raise the target rate of paternity leave to 50% by the 2025 fiscal year and 85% by fiscal 2030.
“The government will make creation of a ‘children first’ society the common aim of its policies,” the prime minister said.
Japan last year posted the fewest births since it began keeping records, continuing a seven-year decline that further aggravates the challenges of its rapidly aging society, data released in February showed.
Read: Japan Will ‘Disappear’ Without Action on Births, PM’s Aide Says
Kishida’s government will put together a draft package on its policies by the end of the month and is planning to present a framework by June for doubling spending on children, he said. The government has been trying to increase the labor force by encouraging more women to work and accepting some immigrants.
Kishida added society needed to shift away from placing the bulk of the burden of childrearing on women. He outlined subsidies aimed at helping part-timers work longer hours without facing a tax barrier, and having both men and women take parental leave after the birth of a child.
Read: Japanese Births Hit Record Low as Years-Long Decline Accelerates
The lack of births means Japan will have a smaller workforce and fewer taxpayers to sustain the world’s third-largest economy in the years to come. The rising cost of caring for its elderly citizens, who make up a higher proportion of the population than in any other country, is draining the nation’s coffers, helping make it the world’s most indebted country.
The government allocated 4.8 trillion yen ($36 billion) from the fiscal 2023 budget to a new agency dedicated to children and their families, the Nikkei newspaper reported in December.
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