The trends of declining birthrates, an aging population, and a declining population will have a major impact on the economy and social welfare, as well as employment and wage systems, if things continue at this rate. Without major reforms to the fiscal and social welfare systems, individual tax and social security burdens will have to be raised. This increased burden, coupled with a decline in the number of workers, is likely to result in a slowdown in economic growth. It is salaried workers in their 40s who will be hit the hardest by pension schemes. Also, medical insurance premiums would have to be raised substantially.
To mitigate these effects and maintain the vitality of the economic and social system for the next century, the government is promoting fundamental reforms in public administration, economy, finance, social welfare, finance, and education. It has also come up with measures to combat the declining birthrate and increase the birth rate. We are considering further enhancing our previous policies, such as providing childcare allowances, improving and enhancing childcare facilities, and enhancing the childcare leave system.
In recent years, the ratio of young people to seniors has been declining rapidly due to the increase in life expectancy. As a result, the shape of the so-called population pyramid is beginning to change and is expected to become an inverted pyramid in the near future.