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Japan is offering young parents a million yen to leave Tokyo; Here's why

The government hopes that 10,000 people will have moved from Tokyo to rural areas by 2027 under this scheme which began in 2019. Under this new proposal, a household with two children could receive 3 million Yen in support if they leave the Tokyo area.

Japan is offering young parents a million yen to leave Tokyo Here is why gcw
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First Published Jan 4, 2023, 10:35 AM IST

The Japanese government has upped the financial incentive for people who choose to leave Tokyo in order to encourage parents to do so. Under this new proposal, a household with two children could receive 3 million Yen in support if they leave the Tokyo area. The government hopes that 10,000 people will have moved from Tokyo to rural areas by 2027 under this scheme which began in 2019.

With an estimated 38 million residents, Tokyo is the biggest metropolitan area in the world. The nation already has a comparable relocation scheme in place, which offers 3 million yen as a one-time support payment and 300,000 yen per kid for individuals migrating. If they open their own firm in the suburbs, they might be able to get more money.

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The earlier plan has, however, been ineffective, as only 2,400 people opted for it in 2021. This is just 0.006% of Tokyo's total population.

With a declining birthrate and a significant chunk of its population above the age of 65, Japan is seeing a fast transition in its demographics. Additionally, despite several government initiatives, the demographic reality has persistently persisted.

The National Institute of Population and Social Security Research of Japan predicted in 2017 that by the year 2030, there will be less than 800,000 births per year. The benchmark, however, was broken in the first nine months of 2022 alone, indicating that the slide is happening significantly quicker than expected.

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The smaller regions of the country are in chaos as fewer people are being born and younger people go to Tokyo and other major cities like Osaka. Finding clients and employees can be challenging for small companies and stores in tiny communities.
 

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