According to several local media sources, Japan intends to increase financial assistance to households that relocate outside of the capital to stop the country’s other regions from depopulating. Starting in the fiscal year 2023, eligible families in the Tokyo metropolitan region will be able to earn 1 million yen ($7,700) per child if they relocate to a low-income neighborhood, which is more than twice the previous incentive of 300,000 yen, according to the article.
The financial incentives draw attention to the problems that Japan is having because of its high life expectancy and low birth rate. Young people are leaving rural areas in search of opportunities in cities, resulting in a significant decline in population and reduced tax revenue in the area. In addition to receiving a flat 1 million yen for relocation, families can also receive enhanced help for their kids. A household with two children could get 3 million yen in support under the new plan if they departed the Tokyo region.
Why is Japan Attracting Population?
According to government figures, Japan saw a record-breaking decline in population between 2020 and 21. From the present 125 million to a projected 88 million in 2065, the population is currently anticipated to decline by 30%.
To draw residents to rural areas, Japan’s national government launched a program in 2019 that enables households that have resided in the central Tokyo metropolitan area for five years to apply for relocation assistance.
Families have the option of continuing to work from home at their present employment, working at a nearby small or medium-sized business, or creating their own business in the neighborhood, all of which would qualify them for additional financial aid.
