Japanese workforce projected to be 20% smaller by 2040

Jan 16, 2019 | News On Japan

Jan 16, 2019 (Japan Times) - The workforce in 2040 is projected to be 20 percent smaller than in 2017 due to overall population decline if the economy sees no growth and women and the elderly continue to have difficulty landing jobs, according to government study released Tuesday.

A study group of the labor ministry, releasing the first official projection for the size of Japanâ€™s workforce in 2040, called for additional policies to boost employment and promotion of artificial intelligence as measures to sustain productivity.

The study did not take into consideration the expansion of the foreign workforce in 14 fields, including construction and nursing care, from April this year.

The panel on employment policies set up by the Health, Labor and Welfare Ministry estimated that the number of workers in Japan will stand at 60.82 million in 2025 and 52.45 million in 2040, down from 65.3 million in 2017.

The number of male workers in 2040 will fall by 7.11 million from 2017, while that of females will decrease by 5.75 million.

By industry, the wholesale and retail sector will be hit the hardest, with the workforce expected to drop by 2.87 million between 2017 and 2040, followed by mining and construction with a 2.21 million fall, and manufacturing, down by 2.06 million.

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