In Chapter 2 of his book, Gordon discusses how the labor force and the population as a whole have changed over the years. The percentage of people living past the age of 65 has increased globally. For Japan, this poses a problem. Due to improvements in healthcare, Japanese life expectancy has increased drastically, but with a birth rate of only 1.4 per woman, Japan's population is not only aging, but it is also shrinking. The National Institute of Population and Social Securities Research predicts that 40 percent of Japan's population will be over 65 by 2050. This will put more pressure on the working population and government upon whom the elderly are dependent. The diagram shows the evolution of Japan's population pyramid.
Some have suggested that Japan welcome more immigrants to increase the working population. Can you think of any more solutions?