Japan Implements Four-Day Workweek to Address Falling Birth Rates

Tokyo is set to take a significant step in combating its declining birth rate with a key labor initiative: starting in April 2025, employees in public-sector companies will be allowed to work just four days a week.

This reform comes as Japan faces its 16th consecutive year of population decline, highlighting the country’s deepening demographic crisis.

The program is part of a global trend promoting the four-day workweek as a way to improve work-life balance. Benefiting thousands of workers in a city of nearly 10 million people, the initiative aims to help employees better manage family responsibilities by providing an extra day off each week.

The Program in Japan and the World

In theory, the measure will give parents more time for child-rearing, potentially encouraging couples to have more children. This comes at a crucial time, as the number of births in Tokyo dropped by over 15% between 2012 and 2022.

Tokyo’s program aligns with similar initiatives being rolled out in other Japanese cities and prefectures. Governor Yuriko Koike has strongly supported this model, which has been championed by the UK-based organization 4 Day Week Global.

The organization has conducted trials in various countries, reporting positive outcomes such as increased productivity, improved employee retention, and reduced sick leave.

Falling Birth Rates

This experiment comes at a critical time, as Japan is projected to see a historic drop in births in 2024, with figures likely falling below 700,000 babies—a threshold not seen since records began in 1899. This trend highlights a demographic crisis that Prime Minister Shigeru Ishiba has described as a “silent emergency” threatening the very foundations of the nation.

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ABOUT THE AUTHOR See More
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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