Abstract: The growing problem of population aging with fewer children affects Japan’s economy, especially its labor market. At present, the issues of undersupplied labor, aging,and increasing unemployment rate of the young are getting obvious. Undersupplied labor problem can be helped by the increase of female and international labors, but not solved fundamentally. The Japanese government has been always thinking highly of the problems caused by population aging with fewer children, and taking measures actively to boost economic growth. Under the same circumstances as Japan, in order to avoid similar problem of labor supply, China should take several measures such as boosting economic growth, implementing second child policy, improving social security system and developing industry for the elderly.

Key words: population aging with fewer children, labor supply, countermeasures, enlightenment