In China, youth hesitant to start families due to economic concerns as population decline accelerated

Despite the Chinese government’s efforts to boost the birth rate and efforts to address a looming demographic crisis, an increasing number of young Chinese people are hesitant to start families, citing economic concerns compounded by societal norms surrounding child-rearing. China’s population declined for the second consecutive year in 2023. Factors such as a record-low birth rate and COVID-19-related deaths contributed to a population decrease of 2.08 million, or 0.15%, bringing the total to 1.409 billion. This decline follows the 2022 decrease of 850,000, marking the first decline since 1961.

The government’s relaxation of the one-child policy to allow three children, along with subsidies and calls for women to focus on homemaking, has not yet reversed the trend. Demographers warn of an impending economic crisis as the working-age population diminishes, and retirees strain social security funds. China experienced a dramatic nationwide COVID surge early last year after three years of tight screening and quarantine measures kept the virus largely contained until authorities abruptly lifted curbs in December 2022. Total deaths last year rose 6.6% to 11.1 million, with the death rate reaching the highest level since 1974 during the Cultural Revolution. New births fell 5.7% to 9.02 million and the birth rate was a record low 6.39 births per 1,000 people, down from a rate of 6.77 births in 2022. Births in the country have been plummeting for decades as a result of the one-child policy implemented from 1980 to 2015 and its rapid urbanisation during that period. As with earlier economic booms in Japan and South Korea, large populations moved from China’s rural farms into cities, where having children is more expensive. Japan’s birth rate was 6.3 per 1,000 people in 2022, while South Korea’s rate was 4.9. “As we have observed again and again from other low fertility countries, fertility decline is often very difficult to reverse,” University of Michigan demographer Zhou Yun said. Further denting appetite for baby-making in China in 2023, youth unemployment hit record highs, wages for many white-collar workers fell, and a crisis in the property sector, where more than two-thirds of household wealth is stored, intensified. The fresh data adds to concerns that the world’s No.2 economy’s growth prospects are diminishing due to fewer workers and consumers, while the rising costs of elderly care and retirement benefits put more strain on indebted local governments. India surpassed China as the world’s most populous nation last year, according to estimates by the United Nations, fuelling more debate over the merits of relocating some China-based supply chains to other markets, especially as geopolitical tensions rise between Beijing and Washington. Long-term, U.N. experts see China’s population shrinking by 109 million by 2050, more than triple the decline of their previous forecast in 2019. China’s population aged 60 and overreached 296.97 million in 2023, about 21.1% of its total population, up from 280.04 million in 2022. With inputs from agencies.