Japanese data for the last 10 years show that the working-age population declined by 0.3 percent year on year and labor productivity increased by 0.8 percent year on year. When combining these numbers, the real GDP growth rate increased by around 0.5 percent. The decline in the workforce reflects the rapid aging that is in progress.
For the next 10 years, assuming that the labor participation of male/female workers and that of different age groups remain constant, the working-age population is expected to decline by 0.6 percent. Meanwhile, labor productivity in Japan increases at a somewhat higher rate than in other major economies.