The Economic Case for LGBTQ+ Inclusion in Japan
An Economic Briefing
Published 2026
Japan has made significant progress on LGBTQ+ inclusion. Public support for marriage equality is now a clear majority, nearly 93% of Japan's population live in municipalities that adopt the partnership system, and many of Japan’s leading companies have introduced visible and ambitious inclusion measures. Yet national law and everyday workplace practice have not kept that pace.
Same-sex marriage is not recognised, national anti-discrimination protections are absent, and more than half of workplaces in the Nijiiro 2026 Report declared having no concrete LGBTQ+ measures in place. The result is a growing gap between Japan’s social and corporate progress, and the conditions many LGBTQ+ people continue to experience in their daily lives.
For Japan, closing that gap is an economic imperative. The country’s population is projected to fall from roughly 125 million in 2020 to under 87 million by 2070, and the working-age share is already contracting. In this environment, Japan cannot afford to lose workers, skills or productivity through preventable ill-health, discrimination or exclusion. This brief quantifies that cost and sets out how inclusion can play a pivotal role in protecting Japan’s competitive position.
LGBTQ+ exclusion may be costing Japan ¥6.04–16.42 trillion each year. Open for Business estimates that LGBTQ+ exclusion costs the Japanese economy approximately 0.87% to 2.38% of GDP, or US$37.3–101.5 billion.
The estimate includes:
¥4.06–12.17 trillion associated with the excess burden of depression, suicide and self-harm, cardiovascular disease and HIV/AIDS.
¥1.98–4.25 trillion in lost earnings associated with the persistent LGBTQ+ wage gap.
These are not hypothetical future losses. They represent costs that Japan’s economy, employers and public services are absorbing today.
Japan already has many of the foundations for further progress: strong public support, visible corporate leadership and growing legal momentum.
Converting that progress into clearer protections and more consistent workplace practice would reduce avoidable economic losses, strengthen workforce participation and help Japan remain competitive as its population contracts. For Japan, LGBTQ+ inclusion is not simply a question of fairness. It is part of the country’s economic resilience.
“Japan doesn’t have workers to spare. With the population shrinking and the workforce already contracting, we can’t afford to leave anyone’s talent, health, or full participation on the table.”
Gon Matsunaka, Board Member Marriage for All Japan
