Publications

Title Impacts of Declining School-Age Population on the Education Sector and Response Strategies Hit 747
Publication 2025-08-29

Institute for Future Strategy Issue Brief, August Vol. 41
“The Impact of Declining School-age Population on the Education Sector and Policy Responses”

This issue brief analyses the impact of the declining school-age population on primary, secondary, and higher education, and discusses possible policy responses. Due to the shrinking number of school-age children, educational indicators such as the average number of students per class and the student–teacher ratio in primary and secondary schools are expected to improve rapidly. However, this trend is also likely to exacerbate inefficiencies in educational finance, as schools become smaller and the number of small and very small schools increases.

In higher education, enrolment in four-year universities has already been declining since 2015, particularly among non-metropolitan universities. Starting in 2035, a full-scale decline in the number of university students is expected, creating significant challenges for many institutions in securing incoming freshmen.

In response, the issue brief emphasises that in order to address the increase in small schools, multiple factors—such as the scale of financial savings from school consolidation and projected future student populations—must be comprehensively considered. It also suggests exploring diverse, context-specific solutions, such as multi-purpose use of school facilities and strengthening schools’ childcare functions.

For universities, the report argues that preparations should be made for the projected decrease in future enrolment by pursuing downsizing strategies on the supply side, such as mergers, consolidation, and enrolment cap adjustments, along with cost reduction and financial restructuring. On the demand side, it stresses the need to attract foreign students, expand opportunities for adult learners, and tap into the growing demand for lifelong education. To support these efforts, it calls for the government to design a concrete and comprehensive roadmap.

Keywords
Declining school-age population, small schools, educational finance, university restructuring, lifelong education, foreign student recruitment