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TABLE OF CONTENTS

I. Introduction
-- The Trend Toward Fewer Children Should Serve As a Warning to Our Society --


II. The Current State of the Fertility and the Population Prospects
-- A Population Decrease Is Now on Its Way --

1 The Continuing Decline in the Number of Births

2 The Unavoidable Depopulation of Japan


III. The Effects of Fewer Children -- Negative Effects Mostly

1 Effects on the Economy
(1) The Decrease in the Labor Force Population and its Subsequent Effects on the Economic Growth -- The possibility of a declining economic growth rate
(2) Effects on the Levels of Living -- The Possibility of a Hovering Net Income for the Working Population --
[1] Increasing Burdens for the Working Population In an Aging Society
[2] Hovering Net Income for the Working Population

2 Effects on Society
(1) Transformation of the Family -- An Increase in the Number of Never married People and Households Without Children
(2) Effects on Children -- Concerns About Effects on the Healthy Growth of Children
(3) Transformation of the Community -- The Difficulty of Providing Basic Social and Health Services to Residents


IV. Underlying Factors and the Background of the Trend Toward Fewer Children

1 Underlying Factors For the Trend Toward Fewer Children
(1) A Rise in the Proportion Never Married (The Trend Toward Later Marriage and a Rise in the Celibacy Rate) -- The Burden of Child Rearing and of Reconciling Child Rearing Responsibilities with Work are Contributing to the Rise in the Proportion Never Married --
[1] The Current State of the Rise in the Proportion Never Married
[2] Factors for a Rise in the Proportion Never Married
1. The Burden of Child Rearing and of Reconciling Child Rearing With Work
[A] Inflexible Employment Practices and the Corporate Culture
[B] Inflexible Attitudes Concerning the Social and Familial Roles of Men and Women
[C] Social Isolation of Mothers, Causing Them Feel Lonely and Worried
[D] Work Situations, Such as Long Commuting Times
[E] Easy-to-Use Nursery Care Services Are Not Widely Available
[F] An Increase in the Opportunity Costs Associated With Marriage and Child Rearing
2. Changes in Attitudes Toward Marriage and in the Value System
[A] The Improving Economic Power of Women
[B] Liberation of Sexual Behaviors and the Outsourcing of Homemaking Services
[C] Changes in the Value of Children
[D] Weakening of Marriage as a Social Norm
[E] Desire for the Freedom Which is Associated With Single Life
3. Hesitation Toward Having a Married Life Which is Independent of One's Parents
[A] The Comfort of Life at Home With One's Parents
[B] Maintaining the Same Levels of Living Prior to Marriage
4. Others
[A] Female Dominant and Reliable Contraceptives Have Not Been Widely Used
[B] Marriage Squeeze for Men in Sparsely Populated Rural Villages
(2) A Gap Between the Average Number of Children and the Ideal Number of Children for a Couple -- In Addition to the Burden of Child Rearing and of Reconciling Child Rearing With Work, the Economic Burden is Also a Factor In Not Having the Ideal Number of Children
[1] The Gap Between the Average Number of Children and the Ideal Number of Children for a Couple
[2] Factors Behind the Gap Between the Average Number of Children and the Ideal Number of Children for a Couple
1. Increased Direct Costs and Opportunity Costs Related to Child Rearing
2. The Desire to Provide Children With a Better Life
3. Others
[A] In Case of Infertility
[B] Concerns Over Childbirth Later in Life

2 Background for the Factors Leading to Trend Toward Fewer Children-the Diversification of Lifestyles of Individuals and Women's Advancement in Society on the One Hand, Inflexible Attitudes Concerning the Division of Social and Familial Roles Between Men and Women and Employment Practices Which Prevent the Advancement of Women on the Other -
(1) Emergence of the Diversified Lifestyles of Individuals as Our Society Matures
(2) Women's Advancement in Society vis-a vis Inflexible Attitudes Toward the Division of Social and Familial Roles Between Men and Women and the Employment Practices Which Prevent Their Advancement, and the Existence of a Corporate Culture Which Supports Such Attitudes and Practices
[1] Women's Advancement in Society and the Decline in Fertility
[2] Factors Which Prevent Women From Leading Diversified Lifestyles
(3) Hesitation to Leave a Comfortable Life Behind in One's Quest for Independence
[1] Hesitation to Leave One's Parents Even After Becoming an Adult
[2] One Perspective: Such Lifestyles May Threaten the Conventional Way of Life
[3] Another Perspective: Such Lifestyles Are the Result of Greater Freedom Concerning Marriage
(4) Concerns About Today's and Future Society


V. Responses to the Depopulation of Society as a Result of Trend Toward Fewer Children

1 Addressing the Impact of the Decrease in the Number of Children
(1) Addressing its Economic Impact -- The necessity to tear down age- and gender-based barriers and create a new employment environment --
[1] Creating an Employment Environment Where Everyone who Wishes to Work Can Find Employment
  1. Improving the Employment Environment for the Elderly, People With Disabilities and Women
  2. Creating an Employment Environment Free of Age- and Gender-based Barriers
  3. Reexamining Fixed Conventional Employment Practices Under the Lifetime Employment and Seniority-based Wage System
  4. Resolving the Mismatch Between Supply and Demand in the Labor Force
[2] Maintaining the Vitality and Competitiveness of Businesses and the Vitality of Individuals
  1. Creating New Industrial Sectors With Higher Added Value
  2. Creating an Internationally Attractive Business Environment
  3. Keeping the National Burden Below a Certain Level, as Well as Realizing a Fiscal Structure Which Is Suitable for an Aged Society With Fewer Children
[3] Establishing an Equitable and Stable Social Security System
  1. Achieving Equity in Terms of Both the Benefit and Burden Between the Working Population and Future Generations and Resolving Concerns for the Future
  2. Preventing People From Becoming Ill and Bedridden, and Encouraging the Social Participation of the Elderly
(2) Addressing its Social Impact -- The Need to Strengthen Our System of Local Governments and Improve the Content of Education -
[1] Strengthening the Local Government System and Revitalizing Local Communities
  1. Strengthening the Local Government System
  2. Revitalizing Local Communities
[2] Education That Nurtures Children's Creativity and Sociability, and Healthy Upbringing
  1. Nurturing Creative Talent
  2. Arrangements That Nurture Children's Social Skills

2 Addressing the Factors Underlying the Trend Toward Fewer Children
(1) The Pros and Cons of Addressing the Factors Underlying the Trend Toward Fewer Children -- Removing the Impediments to Marrying and Having Children -
[1] Positions Against Addressing the Underlying Factors
  1. Specific Viewpoints
  2. Opinions on the Viewpoint That Leaves the Fertility Decision Up to the Individuals
  3. Opinions on the Viewpoint That Sees the Fertility Issues in the Context of Global Population Problem
  4. Opinions on the Viewpoint Which are Doubtful About the Effectiveness of Policy Measures
[2] Positions for Addressing the Underlying Factors
[3] Society's Responsibility in the Child Rearing Process
[4] Issues to Be Aware of in Addressing the Factors Underlying the Trend Toward Fewer Children
[5] The Relationship Between Addressing the Underlying Factors and Receiving Foreign Immigrants
(2) How to Address the Factors Underlying the Trend Toward Fewer Children -- Correcting the Fixed Division of Roles Between Men and Women and the Inflexible Employment Practices, and Effectively Promoting Support for Child-rearing -
[1] Correcting the Fixed Division of Roles Between Men and Women and Inflexible Employment Practices
1. Correcting the Public's Perspectives, Social Practices and Systems
A) Reexamining the Systems, the Public's Perspectives and the Corporate Culture
B) Promoting the Idea of Reconciling Work With Family Life
2. Issues to Be Discussed in the Near Future
A) Social Practices Regarding Work Treated as the Top Priority
B) Concerning Female Employment
C) Concerning Diversity in Work Arrangements
D) Inequities in Treatment Among Full-time Employees, Part-time Employees and the Non-employed
[2] Comprehensive and Effective Promotion of Various Child-Rearing Support Measures
1. Promoting the Angel Plan
A) Efforts to Support Working Parents in Their Efforts to Raise a Family
B) Support in Raising Children at Home
C) Creation of a Housing and Living Environment Which Is Supportive of Child Rearing
D) A More Flexible Education System and Promoting the Healthy and Wholesome Growth of Children
E) Reducing Child Rearing Costs
2. Important Points From the Perspective of Addressing the Factors Underlying the Trend Toward Fewer Children
A) Addressing the increasing opportunity cost of raising children
B) Supporting Working Parents in Their Efforts to Raise a Family
C) Dealing with Issues Related to the Spread of Nuclear Families and Progress in Urbanization
D) Measures to Alleviate the Economic Burden of Child Rearing
E) Rediscovering the Joy and Pleasure of Child Rearing
F) Measures to support the employment of female workers who have infants/toddlers
3. Issues to Be Studied
A) Issues on improving the employment environment
B) Issues on Child Rearing Support
[3] Issues Requiring Further Discussion
1. Response to Those who Cannot Have Children due to Infertility
2. Diversified Family Styles


VI. Conclusion -- Making Our Society With Its Decreasing Population a "Relaxing, Accommodating and Caring Society" --



I. Introduction -- The Trend Toward Fewer Children Should Serve As a Warning to Our Society --

[A Population Decrease For Our Society Is Now on its Way]

The total fertility rate of Japan has fallen dramatically in recent years. To describe this ongoing drop in the national fertility, the phrase "the 1.57 shock" was coined in 1990. This rate continued to drop in subsequent years, substantially bypassing the level required to maintain the current population in the long-term. This means that as the lower fertility further reduces the number of children, our society will also see a decrease in the working age population, and ultimately, a decrease in the overall population. Thus, a population decrease will be observed in our society.

In addition, the continuing below-replacement fertility (the trend toward fewer children) coupled with the extension in the average life span, is accelerating the aging of the population. Japan will soon become a society with fewer children and an aged population, the first of its kind in history -- a society where the demographic composition of the young and the elderly will be quite different from those of the past.

The lower fertility and continued population aging could have a serious impact on the structure and well-being of Japan's society and economy in a number of ways. This trend is deeply related to the way in which our society is structured. We should interpret these trends as a warning to our society.

[For the Sake of Future Generations We Must Have a Clear Vision of the Future ]

It is essential that we have a clear vision of what kind of a society we would deem desirable for future generations in Japan. We must then clearly determine how we should endeavor to realize such a vision. Most importantly, we must clearly understand that this problem is one which faces the entire nation. This is one of the primary responsibilities of the present generation for future generations.

It is envisioned that the impending decrease in population is much more threatening to our society than assumed in the past. In order to meet this challenge, we must carry out drastic reforms such as the ongoing structural reforms of the economy, social security system, government finance system and others. In the face of this challenge, we cannot afford to be optimistic, however, about the future of a society with a decreasing population even if we are successful in implementing these structural reforms.

Consequently, it is critically important that we probe into the underlying factors of the trend toward fewer children from a broad perspective. We must understand that these factors are deeply related to questions about how our entire society should be structured, including such issues as the inflexible attitudes toward the roles of men and women and employment practices. Along with the structural reforms mentioned above, we must make compelling efforts to grapple with other reforms which will have an impact on virtually all aspects of Japanese society, by creating a gender-equal society in which independence and self-realization of individual men and women can be achieved.

[Discussions Held at the Council on Population Problems to Date]

With this perspective, the council has listened to opinions from leading figures in various fields and it has also held "Citizens' Forums on a Society With Fewer Children," which were held nationwide, beginning in February of this year. Based on the results gained from these hearings and forums, we summarized some basic viewpoints on the appropriate responses to the trend toward fewer children and the resulting decrease in our population. We would like to present a report on this issue for the purpose of encouraging discussion throughout the nation.


II. The Current State of the Fertility and the Population Prospects -- A Population Decrease Is Now on Its Way --

1. The Continuing Decline in the Number of Births

The Japanese fertility has fallen dramatically in recent years. The total fertility rate (TFR) (see note.) was stable at around 2.1 from 1965 to 1974, but it dropped to 1.42 in 1995, substantially bypassing the 2.08 threshold which is the level required to maintain the current population in the coming years.

With such a decline in fertility, the number of births, which was over two million in the early 1970's, dropped to approximately 1.2 million in 1995 - a level which is about 60% of the previous level. With the continuing decline in the number of births, the number of children of aged 14 and younger, those who will lead our country into the next age, has been decreasing since the early 1980's. This number, which was over 27 million and which accounted for 24% of the population in those days, has now dropped to approximately 20 million or just 16% of the population.

At the same time, population aging in Japan is in progress at a rate which no other country has ever experienced. The population aged 65 and older was hovering at around 7% in early 1970's, but jumped to about 15% in 1995, effectively doubling in about 25 years. The number of years spent to reach this level was much shorter in Japan compared to the 114 years needed in France, 82 years in Sweden, and the relatively shorter 46 years in England and 42 years in Germany.

As a result, the demographic structure of Japan has significantly changed in recent years.

[Note] This is the sum of the fertility by age for women aged 15-49; the average number of children born to a woman over the course of her lifetime, assuming that a woman gives birth to a child throughout her life with the age-specific fertility rates observed in that year. Therefore, we need to bear in mind that, in general, with the age of marriage on the increase, there is a corresponding increase in the age at which women have their first child, and this is one of the causes for the drop in the total fertility rate. When the age of marriage eventually stabilizes, in turn stabilizing the child delivery age for the first child, the total fertility rate should recover to some extent.

2. The Unavoidable Depopulation of Japan

According to an announcement in January, 1997 entitled "Population Projections for Japan ( National Institute of Population Problems and Social Security Research ), " the medium variant for the working age population will drop, thereby steadily decreasing the total population. This conclusion is based on a prediction that the fertility will recover from the present level to some extent, but will not reach the population replacement level, and that with such a low fertility, the trend toward fewer children will progress.

In more specific terms, the working age population (see note) has been getting smaller after reaching a peak in 1995. Subsequently, the total population is predicted to reach a peak in 2007, then begin to decrease. It is also predicted that the total population will stand at about 100 million in 2050, about 20% less than the present population of about 126 million, while the population aged 65 and older, combined with the extended average life span, will account for 27% in 2025 and 32% of the total population in 2050.

[Note] The working age population in this context relates to the population aged 15 to 64 based on the traditional practices. There is another opinion, however, that this definition does not correspond to the actual status of our society and that it is more appropriate to define the working age population as the population aged 20 to 64. Additionally, when the working age population is defined as described above, the peak is expected to be reached in 1998. In either case, it will decrease before a decrease is observed in the total population.

Further, even with the high variant based on the assumption that the future fertility will be considerably higher than the current level, it is predicted that the trend toward fewer children will continue to predominate.

The low variant for the total population is 92 million, a figure which below the level of 100 million, about a 30% decrease in the current population, assuming even the current fertility cannot be maintained.

Based on such an outlook for the future (namely, an unavoidable progress in the trend toward fewer children), the council studied the possible effects as well as the underlying factors and background of the trend, and the appropriate responses to deal with the decreasing population.


III. The Effects of Fewer Children -- Negative Effects Mostly

[Predictions Under the Existing Systems]

Assuming that current trends continue without a reform of the existing systems, the following are predicted to be the principal effects.

1. Effects on the Economy

(1) The Decrease in the Labor Force Population and its Subsequent Effects on the Economic Growth -- The possibility of a declining economic growth rate

[The Decrease in the Labor Force Population]

A continuing trend toward fewer children will lead especially to a decrease in the working age population, resulting in a shrinking labor force population.

According to the Labor Ministry's June, 1997 estimates of future labor force population, the current labor force population of about 67 million will begin to decrease in 2006, shrinking to about 63 million by the year 2025.

[Changes in the Age Structure of the Labor Force Population]

At present, workers aged 60 and older constitute about 13% of the total labor force population. Assuming that current policies to promote the employment of the elderly are effective, the age structure of the labor force will undergo major changes, and this percentage is expected to reach about 21% by the year 2025.

Given that a large percentage of elderly workers prefer to work shorter hours (although there are individual differences), there is concern that such changes in the age structure of the labor force will lead to a decrease in the labor supply when actual working hours are taken into consideration. Under these circumstances, a further concern is the effect on the supply of labor in areas such as long-term care and nursing, for which demand is expected to increase as the population ages.

[The Possibility of a Declining Economic Growth Rate]

A reduced or limited labor force will inhibit increases in labor productivity, and will also inhibit investment as saving rates decline due to an increase in the percentage of retired workers who ordinarily tend to spend their savings.

If the labor supply in fact decreases and labor productivity stagnates, it is possible that economic growth will tend to decrease in the future.

(2) Effects on the Levels of Living -- The Possibility of a Hovering Net Income for the Working Population --

Along with the slower economic growth due to a shrinking labor supply and stagnant labor productivity as mentioned under (1), the increase of the burden of social security expenses, which cannot be avoided as the population ages, will have a serious impact on the levels of living.

[1] Increasing Burdens for the Working Population In an Aging Society

As the trend toward fewer children continues and the average life span grows, the elderly will eventually make up a larger percentage of the population, resulting in an aged society with few children. As a result, the burden for the working population will increase in areas of social security including pensions, medical care and social services, and this will be a major factor in increasing the transfer of income between generations.

According to the Health and Welfare Ministry's September, 1997 projections of benefits and the burden of payments for social security, social security benefits, which amounted to 65 trillion yen in fiscal 1995, will rise to between 216 and 274 trillion yen in nominal value by 2025, while the percentage of national income devoted to social security benefits is expected to rise from 18.5% to between 29.5% and 35.5%.

Even if public expenditures other than social security remain at their current level (about 20%) as a percentage of national income, the future ratio of the national burden (the burden of taxation and social security) as a percentage of national income will exceed 50% (between 50% and 56%) if the current system remains in effect.

We also need to consider the fact that fiscal deficits will increase the ratio of public burden in the future.

[2] Hovering Net Income for the Working Population

If the various structural reforms now under discussion are not implemented and current trends continue, the alarming prediction has been made that a decline in the growth of per capita income and an increase in the ratio of the so-called national burden could possibly cause a decrease in net income for the working population, which is the balance of gross income remaining after subtracting taxes and social insurance premiums.

A society where the working population is not rewarded for their efforts with an improved level of living, may face the serious risk of having its economic and social vitality undermined in the areas of both productivity and consumption.

2. Effects on Society

(1) Transformation of the Family -- An Increase in the Number of Never-married People and Households Without Children

The fundamental unit of our society is the family, and family structures are undergoing major changes and diversification as the number of never-married people and households without children increases, and the trend toward fewer children continues. In particular, the increase in the number of never-married people implies an increase in the number of people who do not build a family at all, raising the possibility of a fundamental change in the very concept of "family." In addition, the increase in the number of single elderly people leads to increased demand for long-term care and other forms of social support. As the number of households without children grows, the result could be a severing of family lineage, and a potentially diminished awareness of ancestors.

(2) Effects on Children -- Concerns About Effects on the Healthy Growth of Children

There is the concern that as the number of children decreases, the healthy growth of our country's children may be adversely affected. For example, it may be difficult to nurture social skills in children if they are overprotected and have few opportunities to interact with other children, especially children of different ages.

(3) Transformation of the Community -- The Difficulty of Providing Basic Social and Health Services to Residents

Many communities are already experiencing a loss of population, and this phenomenon is expected to spread as the trend toward fewer children continues and the population decreases naturally, becoming a national issue rather than just an issue for some specific communities. The number of depopulated areas is also expected to increase. Thus, it is expected that by the year 2025, the aging and depopulation which has been so noticeable in rural villages will have spread to wider areas, with about a third of the population in most prefectures being 65 years old or more.

There is concern that under the existing systems of local administration, these trends may hinder the operation of our social services and health insurance systems, for example, making it difficult for municipalities to provide basic social and health services to their residences.

In the future, rapid aging is also expected to occur in large urban areas, bringing a variety of associated problems to the fore.

[Generally Negative Effects Are Indicated]

As shown above, although there are varying opinions about the transformation of the family, the effects of the trend toward fewer children are often seen as being generally negative.

However, it should be remembered that there are some who point out positive effects as well, including benefits in daily living. Examples of such benefits would be: decreased environmental impact , a less restricted living environment due to improvements in the problems of population density in large urban areas and elsewhere (such as housing and land space and traffic congestion), increases in the per capita social capital, and educational benefits such as being able to allocate more resources per student and relaxation of competition in school entrance examinations.

In response to these views, it has been pointed out that these are short-term impacts, that people's lives will be more restricted if the levels of living drops due to decreased economic growth, and that rather than increasing in quality, educational services will in fact become more limited as the population shrinks.

In any case, it is certain that the trend toward fewer children will have immeasurable effects on many aspects of our society.


IV. Underlying Factors and the Background of the Trend Toward Fewer Children

It is essential that we analyze the underlying factors and background behind the trend toward fewer children as a basis for studying how we can cope with a society with a decreasing population which results from that trend.

1. Underlying Factors For the Trend Toward Fewer Children

(1) A Rise in the Proportion Never Married (The Trend Toward Later Marriage and a Rise in the Celibacy Rate) -- The Burden of Child Rearing and of Reconciling Child Rearing Responsibilities with Work are Contributing to the Rise in the Proportion Never Married --

The tendency of people to marry later is an important factor in the decline in the fertility in recent years, and this in turn, is contributing to the trend toward fewer children. Though the increasing celibacy rate has not yet had a significant impact on the recent decline in fertility so far, it is estimated that this will likely become a major factor for a drop in the fertility in the long run.

[1] The Current State of the Rise in the Proportion Never Married

[Changes in the Proportion Never Married by Age]

The number of people who have never been married is increasing in terms of their percentage of the entire population. This is true for both men and women, indicating the tendency of people to marry at a later age. This is particularly remarkable among men aged 25-34 and women aged 20-29. The mean age at first marriage is becoming higher for both men and women. Additionally, the celibacy rate (the proportion of people never married at aged 50) is on the rise.

[The Effect on Fertility]

The ratio of births outside of marriage is about 1% in Japan, which is a great deal lower than the figure in some foreign countries (around 50% in Sweden and Denmark, and over 30% in England and France). Marriage constitutes a precondition for giving birth in most cases in Japan. In addition, the older a woman is, the lower her fertility (the possibility of becoming pregnant) becomes, although individual differences may apply. There is also a certain age limit inherent in the capability to conceive and give birth. Taking those factors into consideration, the progressing trend of later marriage is the main factor in the recent decline in the nation's fertility. Furthermore, it is predicted that the continuing rise in the celibacy rate will become a major factor in further reducing fertility in the future.

[2] Factors for a Rise in the Proportion Never Married

[A Rise in the Proportion Never Married Despite a Strong Desire for Marriage]

Pressure from society such as to consider a person a responsible adult only after marriage or to view marriage as a norm has been fading away. Also, a traditional view that one should get married at least to some extent out of one's sense of duty for their family line and parents is being replaced by a more individualistic view. The nature and structure of modern day marriage is considered a matter that should be left to the individual. Thus, the public attitude toward marriage has become increasingly liberal. On the other hand, approximately 90% of the men and women who have never been married say that they intend to "marry some day" when asked about their own marriage prospects. Although Japan exhibits a much stronger tendency for both men and women to perceive 'the marriage of a woman' as a positive development than other countries, the proportion never married is increasing.

According to the results of public opinion surveys on the causes for the increasing incidence of later marriage and public attitudes toward children, the following were pointed out as main underlying factors for the rise in the proportion never married.

1. The Burden of Child Rearing and of Reconciling Child Rearing With Work

[A] Inflexible Employment Practices and the Corporate Culture

Inflexible employment practices which justify (under the lifetime employment system that has been supporting job security) long working hours, transfers of employees to remote regions, etc. and expect workers to prioritize their work over their family, continue to persist in our country. Also the organizational culture of companies and administrative organizations among others (referred as the "corporate culture" hereinafter), which supports such practices has been maintained. At the same time, with women's advancement in society, working women consider it convenient to stay single in order to continue to hold the job that they like.

[B] Inflexible Attitudes Concerning the Social and Familial Roles of Men and Women

There are deep-rooted and inflexible attitudes with regard to the roles of men and women. Generally, these attitudes embrace the notion that it is natural for men to take the role of worker and for women to focus on homemaking/child rearing. Additionally, the time spent by Japanese men to participate in homemaking/child rearing is extremely short when compared with their counterparts in other countries. This reflects the fact that men's participation in those areas is not making progress. These factors are the cause for women associating marriage with a substantial burden. At present, the burden of long-term care for the elderly, which is expected to expand in the future, is mostly borne by women if the elderly live at home. This brings forth yet another aspect of the burden to be faced for by women in our society.

Further, men have strong attitudes toward the divided roles between men and women. Therefore, in most cases, they are not willing to choose marriage and having children if that means that they should go all the way to participate in homemaking/child rearing.

[C] Social Isolation of Mothers, Causing Them Feel Lonely and Worried

Along with the progress in the development of nuclear families and urbanization, it is becoming difficult for mothers to receive the support they need for child rearing from their relatives and neighbors. This, in addition to the situation above, places mothers in an isolated position and often forces them to deal with feelings of loneliness and anxiety. The psychological and physical burden in child rearing is made much more severe because of this, especially during infancy, when it requires a great deal of work.

In addition, communities were once regarded as safe places for children to play, and one could scold the children of other families when they misbehaved. However, the loss of these community bonds has further increased the burden and anxiety among parents even during the period when a child is in school.

[D] Work Situations, Such as Long Commuting Times

The progress in urbanization and the increase in the number of people who work for others (as opposed to being self-employed) have created adverse work situations such as long commuting times and inflexible working hours. This has placed an even more severe burden on couples who are rearing children.

[E] Easy-to-Use Nursery Care Services Are Not Widely Available

Nursery care services which meet working women's needs are difficult to find.

[F] An Increase in the Opportunity Costs Associated With Marriage and Child Rearing

Under the circumstances described above, with an increase in the average wage for women, there are now more benefits which might be lost (the so-called "opportunity costs" of marriage and child rearing) as a result of giving up continued employment and choosing marriage and child rearing instead.

2. Changes in Attitudes Toward Marriage and in the Value System

[A] The Improving Economic Power of Women

Progress in women's employment outside the home has improved the economic position of women in our society. As a result, women do not feel it is as essential as they once did to marry to assure their future income security. In addition, women can feel more fulfilled by their work.

[B] Liberation of Sexual Behaviors and the Outsourcing of Homemaking Services

With the liberation of sexual behaviors and the outsourcing of homemaking services, men's need for marriage has weakened.

[C] Changes in the Value of Children

Due to the presence of a substantial pension system in Japan, changes in the attitudes toward supporting one's parents, among other factors, the importance of children as successors for the family and as a means of support for one's retired life has weakened. As the need to have children as a source of support for their retired period has lessened, the necessity for marriage to serve that purpose has also decreased.

[D] Weakening of Marriage as a Social Norm

With a decrease in likelihood of the general public to view marriage as the norm, it is easier to choose a lifestyle, in which one is not expected to marry, or to choose not to rush into marriage, especially in urban areas.

Further, the pressure from society for marriage has weakened, and arranged marriages have become less common. At the same time, there are a number of young people who have difficulty in socializing with the opposite sex. For example, 40% of young people say they "do not have friends of the opposite sex."

[E] Desire for the Freedom Which is Associated With Single Life

Various services have become more available and offer enhanced convenience in daily living, and a culture representing the young generation has been prospering. These factors have made single life more attractive, resulting in the stronger pursuit of the freedom which single life offers.

3. Hesitation Toward Having a Married Life Which is Independent of One's Parents

As the reason for choosing single life, the top reason given by both men and women is "I have not met a suitable partner." Although what constitutes a "suitable partner" seems to involve various elements, the following situations for the current young generation can be considered as factors for a rise in the proportion of people who have never married.

[A] The Comfort of Life at Home With One's Parents

Living with parents who have assets and economic strength allows one to enjoy (a) the financial support of their parents, or to live basically for free even when one is earning income, (b) their parents' care including meals and laundry, and at the same time, (c) your own room and no interference from parents. Such a free and comfortable life causes some people to become hesitant about marriage which calls for becoming independent of one's parents.

[B] Maintaining the Same Levels of Living Prior to Marriage

As for the conditions women consider and emphasize in choosing their marriage partner, economic strength is second to personality. Under the circumstances described in [A], if women who desire to be a full-time homemaker do not want a lower level of living after marriage, the men they choose need to have a substantially high income. This is considered to be one of the elements that can make the conditions for marriage more difficult to satisfy for men.

4. Others

[A] Female Dominant and Reliable Contraceptives Have Not Been Widely Used

Since no female dominant and reliable contraceptives have been widely used in Japan, it is difficult for women to take decisive control over their reproductive life. Women's concerns about their reproductive health over a lifelong period and about losing a control of the direction of their life tend to keep them from marrying.

[B] Marriage Squeeze for Men in Sparsely Populated Rural Villages

It can be difficult for men who are to succeed to the family business in sparsely populated rural villages to find a partner even if they wish to marry.

(2) A Gap Between the Average Number of Children and the Ideal Number of Children for a Couple -- In Addition to the Burden of Child Rearing and of Reconciling Child Rearing With Work, the Economic Burden is Also a Factor In Not Having the Ideal Number of Children

[1] The Gap Between the Average Number of Children and the Ideal Number of Children for a Couple The ideal number of children for a couple is 2.6 according to fertility surveys, while the average number of children is 2.2, indicating that a certain gap exists between the number of children people want and the number they ultimately have.

The figures for both the average number of children and the ideal number of children for a couple have remained relatively similar since around 1975. Therefore, it cannot be said that this gap between the two numbers has directly triggered the recent decline in fertility in a strict sense. However, we have decided that this issue should be analyzed in studying how we should respond to the impending decrease in population.

[2] Factors Behind the Gap Between the Average Number of Children and the Ideal Number of Children for a Couple

The results of fertility surveys on the reasons for not having the ideal number of children point to the burden of child rearing and of reconciling child rearing with work as described in [2]-1 under (1). The economic burden related to child rearing, shown in the following, can be also pointed out as a reason.

1. Increased Direct Costs and Opportunity Costs Related to Child Rearing

The direct costs related to child rearing have increased. Particularly, the idea that children should be a successor to carry on for the family and that children provide support to their parents in their retired life has weakened. By contrast, the idea that having children gives purpose to one's life and that children brighten a home has become stronger. The direct costs spent on child rearing have increased, because caring for and spending money on children, including the provision of a good education, have become costly. Further, as stated in the above, the benefits which might be lost as a result of giving up continued employment and choosing marriage and child rearing instead (opportunity costs for child rearing) have increased.

2. The Desire to Provide Children With a Better Life

Some people believe that it is preferable for parents who want to provide their children with a better life to have fewer children, so they can be assured of having enough money to provide them with a good education and to enable them to inherit their parents' real estate.

3. Others

[A] In Case of Infertility

There are cases, where infertility can disable a woman from having children despite her desire for motherhood.

[B] Concerns Over Childbirth Later in Life

There are concerns over giving birth to a child at an advanced age.

There are some who presume that an increase in the stress related to the extreme competition in our society and the liberation of sexual values might have reduced the level of libido (the energy which fuels sexual desire) between spouses/ They say that this could be also viewed as a factor in couples having less than the ideal number of children.

[Those Women Who Pursue Continued Employment After Marriage and Childbirth Are Not in the Majority]

In examining the underlying factors for the reduction in the number of children, as pointed out above, we should bear in mind the following: (a) although women's desire to work is getting stronger, a good number of women still wish to be a full-time homemaker in the customary Japanese tradition in which wives tend to have control over the spending for the family , and (b) although an increasing number of women try to pursue both work and homemaking/child rearing, women who pursue continued employment are not the majority in the present severe environment for employment.

2. Background for the Factors Leading to Trend Toward Fewer Children-the Diversification of Lifestyles of Individuals and Women's Advancement in Society on the One Hand, Inflexible Attitudes Concerning the Division of Social and Familial Roles Between Men and Women and Employment Practices Which Prevent the Advancement of Women on the Other -

[A Situation Faced by All of Japanese Society]

Based on the previous analysis of the underlying factors for people having fewer children, what we find in the background is the increasingly diverse lifestyles of individuals, which can be observed in almost any country which has a vibrant, growing economy, as illustrated below. Also, the trend is deeply related to the situation faced by all of Japanese society, where the expansion of material production and consumption has been prioritized and has been enjoyed by people in an atmosphere of rigidly divided roles between men and women in both family and corporate activities.

(1) Emergence of the Diversified Lifestyles of Individuals as Our Society Matures

As a society matures from the economic perspective, it is almost natural for individuals to seek a diversified lifestyle. This phenomenon has been commonly seen in most developed countries. The rise in the proportion of people who have never been married can be considered as one of the indications of this phenomenon.

(2) Women's Advancement in Society vis-a vis Inflexible Attitudes Toward the Division of Social and Familial Roles Between Men and Women and the Employment Practices Which Prevent Their Advancement, and the Existence of a Corporate Culture Which Supports Such Attitudes and Practices

[1] Women's Advancement in Society and the Decline in Fertility

The decline in fertility has come about, to a large extent, as women have made significant social advancements. At first individuals seek a diversified lifestyle as described in (1), and then they tend to view marriage and child rearing as a major hurdle.

[2] Factors Which Prevent Women From Leading Diversified Lifestyles

However, we should not allow ourselves to think that women's social advancement itself is the problem. Despite the fact that women's desire to lead a diversified lifestyle should be realized, we should recognize that marriage and child rearing are sometimes viewed as restricting an individual's freedom, and can cause some women to feel a sense of burden and anxiety toward marriage and child rearing. This is due to the Japanese people's inflexible attitudes toward, and practices thereof, the divided roles between men and women. These attitudes allow people to become comfortable with the idea that men should play the role as the worker and women should involve themselves in homemaking and child rearing only. The deeply-rooted employment practices and corporate culture which prioritizes work over family is also responsible for the stress felt by many women. We should conclude that this attitude is, in itself, part of the problem.

Furthermore, this suggests the need for a review of our country's inflexible and rigid employment practices such as male-centered lifetime employment and seniority-based wage system, which discourages changing jobs and finding other employment, and which regards women as short-term employees.

(3) Hesitation to Leave a Comfortable Life Behind in One's Quest for Independence

[1] [Hesitation to Leave One's Parents Even After Becoming an Adult]

In the aforementioned cases in which single adults are living with their parents and enjoying a comfortable life, they are hesitant to leave their parents to pursue an independent life, though they may wish to one day get married and have children. Sometimes parents are too attached to their adult children to encourage them to seek independence.

As symbolized by this situation, we could probably say that the trend of people having fewer children is partially attributable to living a lifestyle that does not prioritize economic and psychological independence due to one's desire for a comfortable life and vague concerns about living an independent family life, along with the social acceptance of such a lifestyle. Some have pointed out that the trend of having fewer children may also be attributable to an increasing number of young people who tend to avoid close relationships with others for fear of being hurt from the relationship. Others have pointed out that while the instance of arranged marriages is declining in number, neither have people's perspectives nor has the cultural environment matured enough to value the goal of a man and a woman fostering their own relationship based on mutual feelings of love and respect.

[2] One Perspective: Such Lifestyles May Threaten the Conventional Way of Life

Concerns have been expressed about the above-mentioned lifestyle and the social acceptance of it , as they may threaten the conventional sense of a normative lifestyle and society. Traditionally, the notion that people could grow up, become independent from one's parents and raise a family at one's own responsibility has been taken for granted.

[3] Another Perspective: Such Lifestyles Are the Result of Greater Freedom Concerning Marriage

On the other hand, others believe that we should not focus on the negative aspect of the phenomenon, for the result is greater freedom concerning marriage and people taking more time to find the best potential spouse without hurrying into marriage.

(4) Concerns About Today's and Future Society

Still others feel that the recent drop in fertility may be a reflection of a nationwide feeling that we have reached a dead end, concerns over their post-retirement life including pension and long-term care, and vague concerns regarding the stresses in society that have led to the problem of bullying and deterioration in public safety and order within the community.


V. Responses to the Depopulation of Society as a Result of Trend Toward Fewer Children

[Quite Serious Conditions Arriving in the Mid-21st Century]

Opinions greatly vary concerning how we should view a situation involving a decreasing population, such as the one which is expected to emerge in the future. We also should be aware that all quantitative projections are made based on certain predefined assumptions.

As we discussed earlier, however, it is beyond doubt that the trend toward fewer children will bring about an immeasurable impact on various aspects of our society. Even if the ongoing structural reforms are fully implemented, we cannot have a very optimistic projection of our society in 2025. All the more, as Japan is expected to see a trend toward even fewer children and continued population aging, it is foreseeable that Japan will face a quite serious situation in many aspects by the mid-21st century.

[Urgent Efforts Are Required to Address the Issues Associated With a Decreasing Population]

As Japan is surely going to experience a situation it has never experienced before where the population constantly decreases and population aging continually progresses, for the sake of future generations, we must have a vision for the coming society. We must therefore urgently study how to respond to the challenges posed by the issues associated with the decreasing population by addressing both the impact of the trend toward fewer children and the underlying factors for this trend.

1. Addressing the Impact of the Decrease in the Number of Children

As we discuss the measures needed to deal with the issues associated with the decreasing population, we must ensure that measures in various fields are carried out to minimize the negative impact caused by the trend toward fewer children.

(1) Addressing its Economic Impact
-- The necessity to tear down age- and gender-based barriers and create a new employment environment --

[1] Creating an Employment Environment Where Everyone who Wishes to Work Can Find Employment
1. Improving the Employment Environment for the Elderly, People With Disabilities and Women

To ensure that our future society with a decreasing population will be vibrant, we need to alleviate the decrease in the labor force population. A reduced labor supply will trigger demand for additional workers from among women and the elderly. Hence, it is important that we provide an environment where women can easily find employment and the elderly and people with disabilities, who have not always been able to utilize their ability despite their willingness to work, can be employed and work energetically.

2. Creating an Employment Environment Free of Age- and Gender-based Barriers

Moreover, the future direction is to provide an employment environment where everybody who wishes to work can find employment and can choose a suitable working arrangement from among a variety of options. Specifically, we are being called on to create a new employment environment that is free of all age and gender barriers. With regard to the improved employment environment for women, it is particularly important that we expand measures to support working mothers in their efforts to raise children, so that the employment of women will not lead to a further decline in the fertility.

3. Reexamining Fixed Conventional Employment Practices Under the Lifetime Employment and Seniority-based Wage System

In light of the ongoing aging of the population, issues surrounding the employment of elderly people are of particular importance. Despite the heightened willingness among elderly people to work, age limitations for employment and the mandatory retirement age system in conjunction with lifetime employment and seniority-based wage system have created impediments to employing the elderly. The time has come for us to reexamine these fixed conventional employment practices that do not offer a variety of employment arrangements.

In reexamining these employment practices, we should endeavor to create a society where elderly people can continue to work according to their willingness and ability, as long as they are healthy and eager to work, thus enjoying the opportunity to achieve self-realization and to contribute to society.

4. Resolving the Mismatch Between Supply and Demand in the Labor Force

In addition to the issues addressed above, we also need to provide employment information and opportunities for ability development so that we can resolve the mismatch between supply and demand in the labor force which is anticipated to increase due to changes in the age composition of the labor force population in the future, and thus to create an efficient society.

[2] Maintaining the Vitality and Competitiveness of Businesses and the Vitality of Individuals

1. Creating New Industrial Sectors With Higher Added Value

In order to maintain Japan's economic vitality in the future, we need to further improve our labor productivity. To this end, we should promote innovation and manpower development to create fields in new industries with high added values, in addition to implementing those measures to alleviate the decrease in the labor force population mentioned in [1].

2. Creating an Internationally Attractive Business Environment

In an age of full-fledged international competition when businesses choose countries as bases for their operations, it is important for us to create an internationally attractive business environment. To this end, we need to correct the high cost structure in Japan through radical deregulation in the fields of distribution, energy and information/telecommunications, reexamine corporate organizational structures for optimum utilization of management resources, create quality employment opportunities, and change business practices that tend to restrict competition.

3. Keeping the National Burden Below a Certain Level, as Well as Realizing a Fiscal Structure Which Is Suitable for an Aged Society With Fewer Children

The ratio of taxation and the social security burden will inevitably rise due to the progress of the population aging and the trend toward fewer children. It is important, however, that we contain the so-called national burden below a certain level in the national economy to create the optimum balance between the national and personal burden so that the vitality and willingness of individuals and businesses will not be impaired.

Moreover, we need to work toward achieving a healthy fiscal balance to avoid exerting an unreasonable fiscal burden on future generations. At the same time, we need to reexamine the rigid expenditure structure to realize a fiscal structure that is suitable for an aged society with fewer children.

[3] Establishing an Equitable and Stable Social Security System

1. Achieving Equity in Terms of Both the Benefit and Burden Between the Working Population and Future Generations and Resolving Concerns for the Future

Though the social security burden will inevitably increase due to there being fewer children and more elderly people, we should be dedicated to steadily responding to concerns over long-term care and other new challenges. At the same time, we should endeavor to optimize benefits and achieve the proper cost sharing in pensions and the health insurance systems, including the health services system for the elderly, so as to achieve equity in terms of both the benefit and burden between the working population and future generations. In particular, we should make the public pension system more stable so that we do not impose an excessive burden on future generations due to demographic changes.

Efforts to resolve public concerns over long-term care and pensions for the future are also important in the context of facilitating an environment where people can bear and raise the next generation in an atmosphere of security.

2. Preventing People From Becoming Ill and Bedridden, and Encouraging the Social Participation of the Elderly

It is also important to avoid becoming sick and falling into a condition that requires care. This can be pursued through health promotion measures, enhancing preventive medicine and rehabilitation, and improving personal living habits. If these efforts are successful, we can decrease the burden of health expenditures and the long-term care cost.

It is also important that we promote various means of social participation in old age including volunteer activities within the local communities.

(2) Addressing its Social Impact -- The Need to Strengthen Our System of Local Governments and Improve the Content of Education --

[1] Strengthening the Local Government System and Revitalizing Local Communities

1. Strengthening the Local Government System

In order to maintain high standards for the delivery of basic social and health services to residents, we must make local governments responsible for the smooth delivery of these services. With this understanding, we should reinforce the local government system by promoting, for example, the consolidation of municipalities and inter-municipal administrations.

2. Revitalizing Local Communities

We will face the challenge of somehow revitalizing our local communities, while the population is decreasing in most regions. We should respond to the various needs of the residents, and create autonomous, high-quality local communities with the active participation of the residents themselves. To this end, we need to promote cooperation among communities and employ other inter-municipal measures that go beyond the geographic borders of existing units of local administrations.

[2] Education That Nurtures Children's Creativity and Sociability, and Healthy Upbringing

1. Nurturing Creative Talent

Today's school education in Japan tends to be focused on the one-way provision of knowledge. We need to change this by improving the contents and methods used by our educational system by, for example, offering students more opportunities to learn and think by themselves, emphasizing experiential learning and respecting individuality. Such improvements in education are expected to contribute to the nurturing of creative talent.

2. Arrangements That Nurture Children's Social Skills

Families, local community residents and various related organizations and groups should understand and cooperate with one another in providing places and opportunities for their children to enjoy enriching experiences. At the same time, we need to create a social arrangement that will support group activities for children and other functions that nurture their social skills. This effort will help to resolve parents' concern over public security and order within the community.

[Discussions at Related Councils, etc.]

So far we have presented the main measures and their underlying viewpoints from the perspective of responding to the effects of the trend toward fewer children. We believe it would not be appropriate to discuss these measures singularly from the viewpoint of dealing with the impact of this trend.

Therefore, starting with the promotion of various ongoing structural reforms, we should further our discussions on various measures shown above with related specialized councils and meetings, bearing in mind the social impact of the trend toward fewer children. And based on the result, proper measures should be taken.

2. Addressing the Factors Underlying the Trend Toward Fewer Children

(1) The Pros and Cons of Addressing the Factors Underlying the Trend Toward Fewer Children
-- Removing the Impediments to Marrying and Having Children --

[1] Positions Against Addressing the Underlying Factors

1. Specific Viewpoints

There are those who believe that the response to the decreasing population should be limited to addressing the impact of the trend toward fewer children and should not deal with the underlying factors. The points raised by these people include:
A) It is up to individuals whether they decide to marry and have children or not.
B) The decrease in the number of children in Japan would be rather desirable in light of global population increase.
C) The effectiveness of measures involving personal matters such as marriage and childbirth is not very promising.

2. Opinions on the Viewpoint That Leaves the Fertility Decision Up to the Individuals

With regard to the viewpoint expressed in 1. A), our view is that we agree on the need to "remove the barriers which prevent people who desire to marry and have children from doing so" in principle, in light of the fact that the majority of single adults desire to be married and, once they get married, desire to have an average of 2.6 children ideally.

3. Opinions on the Viewpoint That Sees the Fertility Issues in the Context of Global Population Problem

Concerning 1.B), it is true that the global population is growing. But Japan is not aiming to increase its population. It is simply attempting to avoid a conspicuous population decrease. Based on this and the need for Japan to contribute to the global society in the future on the premise of the current framework of the global society, we do not think that taking measures to address the factors is something that should be criticized.

4. Opinions on the Viewpoint Which are Doubtful About the Effectiveness of Policy Measures

About 1. C), we believe that, if we are successful in removing the factors which inhibit marriage and childbirth, we can expect a certain degree of recovery in the fertility. This has been demonstrated in the experiences of the northern European countries and other nations that have achieved an advanced level of gender equality. Many of these countries now experience higher fertility than the figures recorded in the 1980's.

[2] Positions for Addressing the Underlying Factors

Looking into the mid-21st century, Japan will face a quite serious situation with regard to the decreasing population, even after it has implemented bold measures to deal with the impact of the trend toward fewer children. It would be naturally beneficial for individuals who want to be married and have children to do so, if the factors that inhibit them from doing so are removed. This would also be beneficial for our society as it might help us avoid a phenomenal population decrease.

Hence, this council's basic viewpoint is that we need to address the factors underlying the trend toward fewer children as well as address the impact that a reduction in the number of children will have on our society.

However, the ways to address the factors underlying the trend should not be viewed as population increase measures such as those taken before and during the World War II. The fundamental premise is that no measures should be taken that may ruin the diversity of individual lifestyles for both males and females, for instance, by limiting individual's self-determination concerning pregnancy or childbearing.

[3] Society's Responsibility in the Child Rearing Process

We need to recognize that children are assets of society; they are the people who will become the pillars of tomorrow. Taking into account this recognition and the fact that economic support for the elderly has been socialized in the form of a public pension system and their long-term care will be increasingly supported socially through the introduction of the public long-term care insurance system, we need to advance our belief that raising children is not only a private or family responsibility, but also the responsibility of our entire society.

Some are concerned that this perspective may undermine the fundamental understanding that parents are responsible for raising their children.

In either case, we need to promote a national discussion on this point as this is an important issue that relates to not only how we think about families but also how we should decide the extent of society's support for child rearing and how much the public sector should be involved in this process.

[4] Issues to Be Aware of in Addressing the Factors Underlying the Trend Toward Fewer Children

Moreover, we need to be attentive to the following remarks that have been pointed out.

1. We must not put psychological pressure on those who do not want to have children or those who cannot have children though they may want to.

2. This topic should be discussed among people in all walks of life in our country.

3. We should learn to recognize gender-based prejudice in our culture and make an effort to end such prejudice. For example, we should not assume that women should remain at home.

4. We must avoid discussing population issues from the eugenic perspective.

[5] The Relationship Between Addressing the Underlying Factors and Receiving Foreign Immigrants

Some argue that, before discussing the ways to address the factors underlying the reduction in the number of children, we should first clarify a national policy on the propriety of permitting immigration as a means of responding to the impact of the decreasing population, specifically the decrease in the working population.

Even if we were to consider accepting foreign immigrants as a means of responding to the population decrease, however, it would not be practical to receive immigrants at a rapid pace and on a large enough scale to supplement the lowered fertility. Also, it is inappropriate to formulate national policy on the acceptance of foreigners as a given premise simply due to our domestic circumstances. Regardless of our nation's immigration policy, we believe that our society needs to deal with the factors underlying the trend toward fewer children.

(2) How to Address the Factors Underlying the Trend Toward Fewer Children
-- Correcting the Fixed Division of Roles Between Men and Women and the Inflexible Employment Practices, and Effectively Promoting Support for Child-rearing --

[Addressing the Factors Which Hinder Marriage and Childbirth]

When discussing how to address the factors underlying the trend toward fewer children, we should neither restrict the self-determination of individuals regarding pregnancy and childbirth, as stated before, nor should we take actions to compromise the diversity of individual lifestyles regardless of gender.

Therefore, on the one hand, we should reexamine the overall structure of our society, as mentioned below, in our efforts to the problem. On the other hand, it is important that we work to change the public's perspectives, social practices and institutions which serve to hinder marriage and childbirth. Only through this approach can we remove the barriers to marriage and childbirth for those who desire this lifestyle. It is also essential to comprehensively and effectively promote measures to support child rearing.

[1] Correcting the Fixed Division of Roles Between Men and Women and Inflexible Employment Practices

1. Correcting the Public's Perspectives, Social Practices and Systems

A) Reexamining the Systems, the Public's Perspectives and the Corporate Culture

As part of our efforts to address the factors underlying the trend toward fewer children, we should endeavor to reexamine and correct the fixed division of roles between men and women in present-day Japan. We must help people, and women in particular, overcome the social barriers which prevent them from choosing their own lifestyle, and the inflexible employment practices which prioritize work over family responsibilities.

In so doing, some say that it is up to the individual to choose their lifestyle and that the government should not directly intervene in these matters, but it should limit any revisions of the system to changes of a neutral nature so that inequalities in the tax and social insurance premium burdens will not be created.

Clearly, it is up to the individual to choose a lifestyle in which the fixed division of roles between men and women is honored or in which one prioritizes work above all else. However, now that such lifestyles have become the norm and are preventing people from choosing other lifestyles, such situations can no longer be regarded merely as a matter of personal choice. In addition, such practices have been nurtured within our society for a long time, and are pervasive. Thus, it would be difficult in reality to expeditiously reform these practices by simply correcting the system of tax and social insurance premium burdens.

B) Promoting the Idea of Reconciling Work With Family Life

Therefore, in order to correct the fixed division of roles between men and women and the problems associated with Japanese employment practices, we need to reevaluate not only these systems, but also the public's perspectives and the corporate culture that support these systems, so that we can move in the direction of encouraging people to reconcile their work life with their family life and become more flexible in their approach to work.

2. Issues to Be Discussed in the Near Future

Based on such an understanding, we have the following issues to examine in the near future in the areas of system structure and practices.

A) Social Practices Regarding Work Treated as the Top Priority

B) Concerning Female Employment

C) Concerning Diversity in Work Arrangements

D) Inequities in Treatment Among Full-time Employees, Part-time Employees and the Non-employed

[2] Comprehensive and Effective Promotion of Various Child-Rearing Support Measures

1. Promoting the Angel Plan
As a measure designed to support child-rearing, the "Basic Direction for Future Child Rearing Support Measures" (Angel Plan) has been promoted. Priority measures have been implemented focusing on the following basic directions:

A) Efforts to Support Working Parents in Their Efforts to Raise a Family

B) Support in Raising Children at Home

C) Creation of a Housing and Living Environment Which Is Supportive of Child Rearing

D) A More Flexible Education System and Promoting the Healthy and Wholesome Growth of Children

E) Reducing Child Rearing Costs

2. Important Points From the Perspective of Addressing the Factors Underlying the Trend Toward Fewer Children

From the perspective of addressing the factors underlying the trend, as explained earlier, we should pay special attention to the following points in our efforts to implement various child rearing support measures.

A) Addressing the increasing opportunity cost of raising children

In the context of progressive social advancement for women with their increasing average wage, the opportunity cost of raising children, or the benefits which might be lost as a result of giving up continued employment and choosing to raise children instead, is increasing. In light of this situation, it is particularly important that we improve the employment environment to support working parents in their efforts to raise a family and to secure a variety of nursery care services, etc.

B) Supporting Working Parents in Their Efforts to Raise a Family

Some believe that such support measures would be limited in terms of their effectiveness, because the number of women who desire to pursue both work and child rearing is limited only to the most career-oriented women.

Based on various opinion polls, however, the percentage of women who prefer to continue working is steadily increasing. The same survey results also indicate that, had the maternity and child-care leave systems and nursery care services been well established, a considerably greater number of women would desire to continue working.

The expansion of female employment will be called for more as a response to the decreasing labor force. In this regard, we must all the more steadily promote measures that support working parents in their efforts to raise a family as a part of the efforts to address the impact of the trend toward fewer children.

C) Dealing with Issues Related to the Spread of Nuclear Families and Progress in Urbanization

It is also important that we endeavor to alleviate the psychological and physical burdens associated with child care at home as people's concern for security in the community increases and they experience greater difficulty in securing child-care support from relatives and neighbors due to the spread of nuclear families and progress in urbanization.

D) Measures to Alleviate the Economic Burden of Child Rearing

The immense economic burden associated with child rearing, such as educational and other necessary costs, is one of the reasons that couples choose not to have the number of children they would otherwise like to have. Because of this, opinions have been raised that, in addition to greater social support for child rearing, we need to investigate measures to alleviate the economic burden of child rearing by improving the child allowance and alleviating the tax burden in order to achieve equity in light of the number of dependent children.

Some believe that measures to support working parents in their efforts to raise children would be far more effective than measures to alleviate economic burdens if we are to boost the fertility.

It is necessary to examine the significance, feasibility, and effects of these measures from an integrated and multi-faceted perspective

E) Rediscovering the Joy and Pleasure of Child Rearing

Due to the emphasis on the hardships of raising children and the difficulty of reconciling work and child care, some are afraid that the inherent joy and pleasure of child rearing may have been forgotten by people. Others are concerned that the traditional "work only" lifestyle has deprived fathers of precious opportunities to experience the joy and pleasure of child rearing.

Though it is true that various hardship and difficulties come with child rearing, it is also true that child rearing brings a certain measure of joy and pleasure, which needs to be rediscovered. To this end, it would be beneficial for both men and women to learn and understand the pleasure and significance of raising a family through continuing education and other various opportunities.

F) Measures to support the employment of female workers who have infants/toddlers

Some believe that mothers should dedicate themselves to child rearing when the children are infants and toddlers to ensure their sound growth, and that therefore it is not desirable to support the employment of female workers who have children in those age groups.

However, if fathers as well as various nursery care services and local community members can work together to provide child care along with mothers, that would be more desirable for the sound growth of children, because they would receive loving care from many more people than just their mothers. Historically speaking, moreover, it was during the time (and thereafter) when urbanization progressed and working as employees, rather than as the self-employed, became the norm among workers that mothers began to devote themselves to child rearing, carrying most of the burden by themselves. For example, back in the days when agriculture was the main industry of our society under the extended family system, mothers along with fathers were engaged in productive labor.

Taking all these into consideration, we believe that measures to support the employment of female workers who have infants/toddlers should not be denied. It goes without saying that the maximum care should be given to the welfare of children, and every effort should be made to ensure their welfare.

3. Issues to Be Studied

Based on those points, the following issues require further study and deliberation.

A) Issues on improving the employment environment

B) Issues on Child Rearing Support

In discussing these subjects, we need to evaluate the effects of ongoing and new measures, revise them when necessary, and ensure the most effective promotion methods.

With regard to improving the employment environment, it is important that we make sure that this effort does not lead to discouraging companies from employing those who wish to reconcile their work and family lives.

[3] Issues Requiring Further Discussion

1. Response to Those who Cannot Have Children due to Infertility

It is estimated that a significant number of men and women do not have children due to infertility problems, despite their desire to have children. This subject involves issues of bioethics, such as in the case of artificial insemination, and thus, requires careful discussion. While being very careful not to pressure those who cannot have children due to physical reasons, we need to consider the promotion of research into infertility treatment.

Moreover, in the context of health damage due to frequent artificial abortions and the rare use of women-centered contraceptive methods, we need to study the best ways to support women in their effort to take the initiative in maintaining their reproductive health over a course of their life.

2. Diversified Family Styles

We need to expand discussions on whether popularizing the option of wives and husbands having different last names or adopting assumed names, and increasing the social tolerance toward the cohabitation of unmarried couples and other unconventional family styles would lead to a recovery in the marriage rate and, subsequently the fertility over the long run.

In this regard, some suggest that because the question of whether we should permit different last names for a wife and a husband is crucial to the structure of Japanese society, we need to carefully think this issue through.

On the issue of children born outside marriage, we should encourage a national discussion considering its various aspects including the fact that Japan's Civil Code upholds the concept of marriage by virtue of law. At the same time, we should make every effort to correct the disadvantageous treatment of the children outside the marriage in the current system and eliminate social prejudice against them.


VI. Conclusion -- Making Our Society With Its Decreasing Population a "Relaxing, Accommodating and Caring Society" --

Considering the many immeasurable effects that the trend toward fewer children will have on our nation's society as a whole, it is necessary to take a broad view of the background and underlying factors of the trend, and to look seriously at governmental policies for dealing with it.

[The Trend Toward Fewer Children is Connected to the Current and Future Conditions of Our Society as a Whole]

Although this trend has many underlying factors, it is basically deeply connected to the general condition of Japanese society, which has reaped the benefits of a drive toward economic growth and development in the context of rigid gender divisions in family life and corporate culture. The trend also seems to reflect anxieties about the future of society, as well as the perception that it is a burden for an individual to bear and raise a child.

[Building a Society With Hope for the Future]

This situation will require still deeper discussion, research and surveys, involving the input of individual citizens, families, communities and companies as well as the national and local governments. We should take it seriously as a warning for Japanese society, and try to build a society in which individuals can feel hope for the future without feeling that it is a burden to bear and raise a child.

[Addressing the Realities Faced by a Society With Fewer Children]

In a society with a decreasing population, the institutions and conventional practices which were formed during the preceding era of continuous population growth need to be reevaluated. First, it will be necessary to steadily implement ongoing structural reforms in the areas of our economy, social security system and fiscal system, in order to cope with the effects of the trend toward fewer children.

At the same time, in dealing with the underlying factors of the trend, it is necessary that we reevaluate the current condition of Japanese society as a whole, which has come to look upon bearing and raising children with a sense of burden and anxiety. Governmental policies and other measures for dealing with the underlying factors of the trend toward fewer children extend to the areas of labor, social services, public health, medical care, social security, education, housing and taxation among others. However, the focus is on reforming rigid gender divisions and employment practices, and providing support to allow parents to combine child rearing and work. It will be necessary to steadily implement these policies and use them as a basis for developing a suite of related policies.

[Creating a New Employment Environment Free of Age and Gender Barriers]

In particular, from the standpoint of dealing with both the effects and the underlying factors for the trend toward fewer children, it is extremely important for companies and other employers to reform the rigid employment environment of the mandatory retirement ages, life-long employment and seniority wage systems, in order to create a new employment environment free of age and gender barriers, in which all individuals, including women and the elderly, can be employed according to their willingness to work. This is the most fundamental way to address a society with a decreasing population.

[New Community and Corporate Cultures Based on a New View of the Family]

The efforts work toward the goal of a gender-equal society in which men and women respect each other, bringing each other joy and love, and in which the independence and self-realization of individuals (both men and women) is compatible with contribution to others. We must build a new community culture in which the isolation and anxieties of raising a child at home are dealt with based on a new vision of the family in which men and women share both the responsibilities and pleasures of child rearing, and a new corporate culture in which the duties of work, housework, child rearing and long-term care are balanced, and the willingness and ability to work are fully exploited. This also means that we will attempt to build a new framework for our society, which tries to achieve social solidarity in its effort to nurture the next generation.

[An Accommodating and Caring Society]

The society thus achieved will be one in which consideration is given to combining work and child rearing, and in which men and women can both make full use of their abilities, resulting in a new efficiency to meet the needs of a society with a declining population. Along with hope for increased fertility, this will be a society in which there will be renewed hope for marriage and child rearing, and in which husbands and wives will share the intrinsic pleasures and joys of child rearing in an accommodating and caring society, .

[A Society Which Allows Security and Hope for the Future]

We on the council believe that the most important measure for dealing with a society of a decreasing population is to allay the anxieties that the Japanese people have toward the future, and through our efforts, to build a society in which they can have a sense of security and hope for the future.

When considering Japan's population problems, however, we must not forget to look at population issues on a global scale. The world's population has doubled, increasing from about 2.5 billion in 1950 to 5.7 billion today, and it is expected to grow to about 10 billion by the 2050s. We also need to consider the effects that this population growth will have on the global environment and global resources, and address such environmental and resource issues.

With regard to the issue of foreign labor, there are some concerns about its socio-economic impact on our society, and there is a need for adequate, straightforward discussion of the pros and cons and ways and means in the proper fora, rather than closing one's eyes to its ramifications.

[The Nature of This Report]

This report is a summary of the background and underlying factors of the trend toward fewer children, and the various views and points of argument concerning ways for dealing with a society with a decreasing population caused by the trend toward fewer children.

As mentioned in the Introduction, it is fundamentally the Japanese citizen who has the responsibility as well as the freedom to choose how to view the trend toward fewer children and the advent of a society with a decreasing population, and to decide what Japan's society should be in the future.

We hope that this report will provide a starting point for a national discussion of these important social challenges. We hope that it will be discussed widely in all fields and by all levels of society, so that a national consensus will be formed concerning the coming society with a decreasing population, and that broad, national efforts by businesses, local communities, families and individuals as well as the national and local governments will achieve progress in building a new Japanese society for the future.


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