Japan is facing one of the biggest demographic challenges in its modern history. For the first time in 42 years, the number of Japanese nationals has fallen below 120 million, with births hitting another record low while deaths continue to outnumber newborns. As the country struggles with an ageing population and a shrinking workforce, the number of foreign residents has reached an all-time high. Can immigration and government policies reverse the trend, or is Japan entering a new demographic era? In this video, we break down the latest population figures, why Japan's birth rate continues to fall, how labour shortages are reshaping the country, and what this means for Japan's economy and the world.