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Associated Press, June 10, 2004

Japan's Birthrate Falls to New Record Low

BYLINE: MARI YAMAGUCHI; Associated Press Writer

TOKYO -- Japan's birthrate fell to a record low of 1.29 last year, the government said Thursday, renewing fears about the country's ability to support its graying population in coming decades.

The rate, which measures the average number of times a woman gives birth during her lifetime, dropped 0.03 point from the previous low of 1.32 in 2002, said Yuki Ueda, a Health and Welfare Ministry official.

The latest figure - among the lowest in the world - showed Japanese mothers are having fewer children despite heightened government efforts to encourage larger families.

The falling birth rate threatens to leave Japan with a labor shortage in decades to come as well as eat away at the country's tax base. The national pension system, which relies on current workers to support the elderly, also is strained.

"We have to take measures to raise the birthrate," said Chief Cabinet Secretary Hiroyuki Hosoda. He did not, however, specify any steps the government would take.

To ensure the solvency of the pension system as the population ages, Japan's ruling coalition last Saturday rammed an unpopular bill through Parliament that hikes the premiums citizens must pay while lowering the benefits retirees receive.

The Yomiuri Shimbun, Japan's largest newspaper, said the 1.29 birthrate is especially alarming because when the government estimated its pension costs, it assumed the birthrate would remain at 1.32 in 2003. The government also had predicted it would bottom out at 1.306 in 2007 before rebounding to 1.39.

The new record low indicates the government may have to raise premiums even higher.

The Health ministry's Statistics Bureau said the number of babies born in 2003 fell 33,000 from the previous year to 1.12 million.

Japan's birthrate has been falling for decades, a trend largely attributed to changing values among younger generations of Japanese who find less fulfillment in marriage and children, and the astronomical costs of real estate and education in Japan.

Japanese women have also delayed marriage and childbirth due to the difficulties of finding affordable child care and weak support from companies and communities for working mothers.

Many women are expected to quit their jobs when they give birth and devote their days to caring for children. Faced with having to choose between family and career, more women these days are sticking with work.

In recent years, Japanese policy-makers have started showing concern about the long-term impact rapidly dwindling numbers of children will have on the world's second-largest economy. The government has started building more day care centers, encouraged men to take paternity leave and companies to ensure equal opportunities for women.

The changes, however, have yet to have an impact.

According to a Japanese government think tank, Italy's birthrate stood at 1.24 in 2001, while Germany's was 1.29. The birthrate in the United States was 2.13.

<< Associated Press -- 6/10/04 >>

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