Japan is one of the first countries to experience a sharp decrease in children being born, and as a result, there are many more older people than younger people. This causes many difficulties for businesses and the government, both of which are trying to grow the economy. The economy is important because it is the system of how money is made and used within a country or region. A region's economy relates to things like how many goods and services are produced and how much money people can spend on these things. Having a good and growing economy means that people can afford to buy, use and make more products and services.
The decline in the number of children being born is a problem for companies trying to hire new workers, as well as for hospitals and senior homes that need to take care of an aging population. When there are more older people than younger people, there are a variety of problems that occur. In addition, the government has fewer taxable citizens and may struggle to support people who rely on social welfare benefits.
Population pyramids like those on the right show the percentage of people in each age group. America’s population pyramid shows that there are about as many young people as there are 60-year-olds. However, less of the population is over 60 years of age.
