Skip to main content

How much longer can the labour force grow?

Perhaps the most remarkable achievement of Abenomics has been the continued increase in employment despite the contraction in the working age population. It is possible that Japan will be able to continue dodging its apparent demographic destiny but this would require it to meet some optimistic assumptions. A more plausible scenario is that growth of the labour force stalls, and potential GDP growth drops as a result from near 1% in recent years towards zero.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access