Figures released by the government in August show Japan's population as of March 31st 2007 at 127,053,471, a drop of 1,554 and the second straight year of decline.

Deaths hit an all-time high of 1,081,174, even as the percentage of people aged 65 or over rose to 21% of the total population, compared to 20.3% in 2006.

Births, however, rose for the first time in eight years to 1,091,917, a rise of 26,384 people, up from the record low of 1,065,533 births last year.

Despite the natural increase in population, i.e. births minus deaths, of 10,743, the total population still fell.

In a newspaper interview in September, Yoko Kamikawa, Minister for Population Issues and Gender Equality, stated that the key to turning around Japan's declining birthrate was to improve the work-life balance for both women and men.

She said that long working hours and inadequate support for working women had prevented many people from achieving this balance.

Cabinet Office figures show that a quarter of male employees in their 30s worked more than 60 hours a week in 2004, and about 70% of working women quit their job when they got pregnant or gave birth to their first child.

Since 1994, the government has put in place measures such as paid maternal leave and more child support to halt the declining birthrate, but with little success.

Even though a government panel is working on a "work-life balance charter" and action plan, as well as changes in tax and social security, the measures are unlikely to be binding and will have little real impact on businesses.

Furthermore, measures such as increasing family allowances are seen as being too costly and are unlikely to be put into law.