Examines Japan’s rapid ageing and the impact of demography and population decline on the labour market. Examines the attitudes of Japanese and the authorities towards immigration and concludes that it is unlikely that Japan will allow mass in-migration in the near future. Looks at alternative ways of dealing with the fall in the working-age population, including outward direct foreign investment, raising of labour productivity in non-traded goods industries, and the potential for increased labour force participation and longer working hours for women. Concludes that although Japan faces...

Examines Japan’s rapid ageing and the impact of demography and population decline on the labour market. Examines the attitudes of Japanese and the authorities towards immigration and concludes that it is unlikely that Japan will allow mass in-migration in the near future. Looks at alternative ways of dealing with the fall in the working-age population, including outward direct foreign investment, raising of labour productivity in non-traded goods industries, and the potential for increased labour force participation and longer working hours for women. Concludes that although Japan faces problems in financing its social welfare programmes and will suffer from shortages of labour in some sectors, the country should be able to manage its demographic decline.