Japan’s total population fell by 2.5% to 22.9 million as of October 2025, according to a five-year survey released Tuesday, while the government simultaneously enacted a 2,000% fee hike for permanent residency permits. The stark demographic contraction highlights a deepening labor crisis even as Prime Minister Sanae Takaichi’s administration implements stricter immigration and residency controls.
Japan Population Drops as Foreign Residents Increase
- Demographic Contraction: Japan’s total population dropped 2.5% over five years to 22.9 million by October 2025, accelerating from a 0.7% decline in the previous 2020 census.
- Surging Foreign Workforce: Foreign residents climbed 40% to a record 3.84 million, now comprising 3.4% of the total population amid persistent below-replacement birth rates.
- Policy Tightening: Permanent residency fees increased 2,000% to $1,271, alongside mandatory language evaluations and stricter income floors of $36,428 per year.
Census Data Reveals Accelerating Population Decline
The latest five-year population survey detailed how stark Japan’s situation is. As of October 2025, the total population, including foreign residents, stood at 22.9 million, down 2.5% from five years earlier. The prior census in 2020 showed a dip of just 0.7%.
Following a 1.4% reduction in the 2020 figures, the count of Japanese citizens showed a much sharper fall of 3.5%, dropping to 119.1 million. Like other wealthy economies in Asia, Japan’s birth rate has remained below the replacement level of 2.1 children per woman for decades, with the population in steady decline since around 2008.
At the same time, the country is aging rapidly. By 2025, the proportion of residents aged 65 and older climbed to 29.4%, compared to 28.5% recorded in 2020. Adult diapers have been outselling baby diapers in the country since 2011.
Record Foreign Inflows Meet Political Backlash
While foreigners make up just 3.4% of Japan’s population, that share has increased to a record high. Foreign residents jumped 40% to 3.84 million, and permanent residents climbed 17% to 947,125.
The country has scrambled to find domestic ways to encourage family growth. Tokyo’s metropolitan government launched a dating app to bring more couples together, alongside a four-day workweek and partial leave policy for city workers to help parents balance childcare and work.
By contrast, policies have turned significantly more restrictive regarding foreign nationals. Prime Minister Sanae Takaichi has ushered in a more nationalist, right-wing stance, translating domestically to a crackdown on immigration and tourism. In July, the government hiked some tourist visa prices by more than 400%.
Stricter Residency Rules and Fee Hikes
On Thursday, the Japanese government increased fees for permanent residency to $1,271 from $64, marking a 2,000% jump and the largest increase in the country’s history. The cost for a five-year residence permit shot up to $475 from $38.
Permanent residency applicants now face stricter financial hurdles in Japan, requiring a yearly income of at least $36,428. For the first time, applicants for permanent residency will be evaluated based on their Japanese language skills and their grasp of rules and customs.
The government can now revoke permanent residency for failing to meet pension contribution obligations, failing to pay health insurance and taxes, or violating immigration law and the penal code.
| Demographic Metric | 2020 Census | 2025 Census | Percentage Change |
|---|---|---|---|
| Total Population (inc. foreign) | earlier census | 22.9 million | -2.5% |
| Japanese Nationals | earlier census | 119.1 million | -3.5% |
| Foreign Residents | earlier census | 3.84 million | +40% |
| Permanent Residents | earlier census | 947,125 | +17% |
Prime Minister Takaichi Justifies Stricter Residency Controls
Writing on X ahead of the government’s new residency rules, Prime Minister Takaichi stated that many permanent residents could not maintain independent livelihoods.
“The government recognizes that, with the increasing number of foreign residents, there are citizens who feel anxiety and a sense of unfairness, and is addressing this by making ‘foreign policy’ more ‘orderly’ so that both citizens and foreigners can live safely and securely,” she wrote.
The pivot toward stricter controls has drawn criticism that Takaichi is encouraging xenophobia, even as businesses grapple with a shrinking domestic labor pool.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
