Addressing East Asia’s Demographic Crisis: The Promise Of Four-Day Workweek – Analysis

East Asia has been currently grappling with an unprecedented demographic crisis marked by plunging birth rates and aging populations. The East Asian countries such as Japan, South Korea, China, and Singapore have reported fertility rates far below the replacement rate of 2.1 children per woman.

South Korea, for example, reached a record low of 0.72 in 2023, while Japan’s fertility rate has stagnated at 1.2. This demographic shift presents severe economic and social challenges, including shrinking workforces and rising welfare costs to support aging populations. Against this backdrop, the Tokyo Metropolitan Government has announced a four-day workweek initiative as a potential solution to address the declining birth rates by fostering better work-life balance and supporting families.

The declining birth rates in East Asia are driven by several interconnected factors. Economically, the high cost of living, particularly in urban areas, discourages many couples from starting/expanding families. In Japan, the financial burden of childcare and education, combined with stagnant wages and housing affordability issues, makes parenthood a daunting and challengeable issue/s. Job insecurity further exacerbates this reluctance, with many young people prioritizing economic stability over family expansion.

Culturally, urban lifestyles often emphasize individualism and career ambitions, leading to delayed marriages and fewer births. Gender inequality also plays a significant role, with women disproportionately shouldering domestic responsibilities, discouraging them from having multiple children or even entering motherhood. Work culture in East Asia is another critical factor. The intense pressure to perform long hours leaving little time or energy for family life. In Japan, where overwork-related health issues are prevalent, such pressures severely impact individuals’ ability to focus on personal relationships and family planning.

The implications of these declining birth rates are far-reaching. Economically, a shrinking workforce undermines productivity and growth, with Japan’s GDP growth slowing considerably in recent years due to its aging population. The respective governments have been facing increasing fiscal pressure as they struggle to provide welfare and healthcare for a growing elderly population while experiencing reduced tax revenues from fewer working-age citizens. Socially, an aging population creates a generational imbalance, leading to fewer caregivers for the elderly and a diminished sense of community. Globally, this demographic decline threatens East Asia’s competitive edge in innovation and markets, further complicating economic challenges.

To address these issues, governments in East Asia have been introducing a variety of measures, primarily focused on financial incentives and policy reforms. Singapore’s Baby Bonus scheme offers up to SGD 13,000 for families with multiple children, while Japan and South Korea provide comparable monetary benefits. Despite their generosity, these measures have had limited success, as they fail to address the deeper institutional and cultural barriers to parenthood. Policies aimed at reducing childcare costs and improving parental leave have also been implemented. South Korea offers generous parental allowances, while Japan has introduced monthly childcare subsidies. However, these efforts have not been sufficient to reverse the trend. Singapore, on the other hand, has managed to maintain a relatively stable population through liberal immigration policies, but this approach may not be feasible for culturally homogenous nations like Japan and South Korea.

Amid these challenges, the four-day workweek presents a promising new approach by Japan. The rationale behind this initiative is to address the root causes of low fertility by tackling work culture and improving work-life balance. By providing employees with an additional day off each week, the policy aims to reduce stress and fatigue, giving individuals more energy to focus on personal relationships and family life. It also encourages parents to spend quality time with their children, engage in caregiving, or plan for family expansion. Importantly, the four-day workweek can help promote gender equality by enabling women to better balance their careers and motherhood while redistributing caregiving responsibilities.

The Tokyo Metropolitan Government plans to implement the four-day workweek for its employees starting in April 2025. This policy includes provisions for parents of young children to clock out early in exchange for a partial salary cut, targeting over 160,000 workers. The initiative aims to set a precedent for private sector adoption, fostering a broader cultural shift toward prioritizing family well-being. Evidence from global trials supports the potential benefits of this approach. A 2022 pilot in Japan revealed that over 90% of participants reported improved happiness and work-life balance. Similar studies in other countries have demonstrated reductions in stress, burnout, and fatigue, coupled with increased productivity.

The four-day workweek also offers broader societal benefits. Economically, it has the potential to increase productivity as well-rested employees tend to be more efficient and creative. With more free time, individuals may spend more on leisure activities, stimulating consumer spending and economic growth. Socially, the policy strengthens family bonds by allowing parents to be more actively involved in their children’s lives. It also enhances gender equity by normalizing flexible work arrangements and encouraging a more equitable sharing of domestic responsibilities. Additionally, reduced work hours can lead to increased community participation and social cohesion, fostering a healthier and more balanced society.

Despite its promise, the four-day workweek faces several challenges. Resistance from employers is a significant obstacle, as many businesses are concerned about potential reductions in output and profitability. Implementation costs, including investments in training and operational restructuring, may also deter organizations from adopting the policy. Certain industries, such as healthcare and manufacturing, may find it challenging to implement reduced work hours without compromising service quality. Cultural barriers, particularly in East Asia, where long hours are often equated with commitment and success, may further hinder acceptance of the policy.

In conclusion, East Asia’s birth rate crisis is a complex and multifaceted issue that demands innovative and holistic solutions. While monetary incentives and policy initiatives have made some progress, they fall short of addressing the deeper cultural and structural barriers that discourage parenthood. The Tokyo Metropolitan Government’s four-day workweek initiative represents a bold and forward-thinking approach, targeting the root causes of low fertility by promoting work-life balance, reducing stress, and supporting families.

While challenges remain, the potential benefits of this policy—from enhanced productivity to stronger family bonds—make it a promising strategy for addressing demographic decline. By pioneering such initiatives, Tokyo could set a precedent for other regions, fostering a more sustainable and family-friendly society. Ultimately, addressing the birth rate crisis will require collective efforts from governments, businesses, and communities, with the four-day workweek serving as a critical step toward a brighter demographic future.

About the authors:

• Prof Bawa Singh, Department of South and Central Asian Studies, Central University of Punjab, Bathinda (India).
• Dr. Jaspal Kaur, Department of Socialogy, Lovely Professional University, Phagwara, Jallandhar (Punjab). 
• Ms. Diksha Kanwat, PhD Scholar, Department of South and Central Asian Studies, Central University of Punjab, Bathinda (India).