The working-age population, or in other words the population aged from 15 to 64, has been declining after peaking in 1995. The working-age population in 2010 declined by 7 percent compared to 15 years previously in 1995, or by 0.5 percent on a yearly basis.
Meanwhile, the percentage of people 65 or older accounted for about 15 percent of the total population in 1995, but rose to about 25 percent in 2010. This globally unprecedented rapid population aging has had far-reaching and various effects on Japan’s economy. The first of these effects is on the economy’s potential growth rate. The working-age population plays a central role in economic activity.