Japanese officials are brainstorming strategies to combat the decreasing birthrates, like expanding childbirth coverage under public health insurance. Tokyo is also contemplating measures like regulating hospital bills and providing delivery assistance.
2023 saw a significant drop in Japan‘s birth rate, with 43,482 fewer newborns than in 2022. This downward trend has been ongoing since 2015, with the population projected to decline to 87 million by 2070, leaving four out of 10 people aged 65 or older.
To incentivize more births by 2026, the Japanese Government is mulling over including childbirth expenses in public insurance. However, childcare costs are currently not covered as it’s not classified as a medical condition, with only specific types of deliveries like Cesareans covered.
The fixed childbirth cost helps offset payment disparities across different regions in Japan. For instance, the average childbirth cost in Tokyo stands at 600,000 yen, compared to 360,000 yen ($3,838) in Kumamoto.
Japan observed its largest population decline in 2023, with a drop of 848,659 individuals. Additionally, the average number of children a woman is expected to have in her lifetime hit a record low of 1.20 in 2023, down from 1.33 in 2020 and 1.5 in 2015.
Yoshimasa Hayashi, Japan’s chief cabinet secretary, emphasized the critical nature of the situation, calling for a reversal of the trend in the next six years. The government aims to bolster income for younger generations and support families with young children.
While plans to enhance medical benefits for families are in motion, Executive Economist Takahide Kuch from Nomura Research Institute believes these measures alone won’t suffice. Addressing falling birth rates requires broader economic interventions beyond increased subsidies.