Japan's "2025 Problem" marks a critical demographic turning point when the nation's baby boomers reach 75 years of age or older. This shift intensifies a severe labor shortage as a large cohort of skilled workers retires.

It places immense strain on the social security system, particularly healthcare and pensions, due to a sharp increase in the elderly dependency ratio.

From a labor perspective, a key challenge is effective skill transfer, as decades of valuable, tacit knowledge risk being lost. Addressing this requires immediate strategic planning to maintain productivity and support the working-age population through innovation and workforce transformation.

See also: Japan's "2024 Problem"