To get its citizens to have more children and stop its population from shrinking, China has tried it all, even declaring having babies an act of patriotism. And yet, for the third year in a row, its population got smaller.

Not even a surprise uptick in the number of babies born, a first in seven years, could reverse the course of an aging and declining population.

China is staring down a longer term baby bust that is rippling through the economy. Hospitals are shutting their obstetrics units, and companies that sold baby formula are idling factories. Thousands of kindergartens have closed and more than 170,000 preschool teachers lost their jobs in 2023.

The country’s birthrate, as one former kindergarten in the southern city of Chongqing put it, “is falling off a cliff.” Enrollments in China’s kindergartens plummeted by more than five million in 2023, according to the most recently available data.

On Friday, the National Bureau of Statistics reported that 9.54 million babies were born last year, up slightly from 9.02 million in 2023. Taken together with the number of people who died over 2024 — 10.93 million — China’s population shrank for a third straight year.

The small bump in newborns, in part because it was the auspicious Year of the Dragon in the Chinese zodiac, didn’t change the broader trajectory, experts said. China’s childbearing population is declining and young people are reluctant to have children.

“In the medium and long term, the annual number of births in my country will continue to decline,” said Ren Yuan, a professor at Fudan University’s Institute of Population Studies.

The lack of babies is adding to China’s economic challenges. A shrinking working-age population is straining an underfunded pension system, and an aging society is leaning on a creaking health care system. China also reported on Friday that the economy grew by 5 percent in 2024, a number that was in line with expectations but that many experts said did not fully reflect a crisis of confidence among households reeling from a multiyear property crisis.

To encourage people to have more babies, the authorities are offering tax benefits, cheaper housing and cash. Cities are promising to cover the cost of in vitro fertilization. In some parts of the country, they are even promising to get rid of restrictions that penalize single mothers.

The government has called on local officials to put in place early-warning systems to monitor big changes in population at the village and town levels around the country. Some officials are even knocking on doors and calling women to inquire about their menstrual cycles.

Companies are also getting involved. In 2023, the travel site Trip.com started paying employees nearly $1,400 a year for each newborn until the age of 5. Last week, the founder of electric vehicle maker XPeng said he would give employees nearly $4,100 if they had a third child.

“We want our employees to have more kids,” said He Xiaopeng, the founder, in a video posted on social media. “I think the company should take care of the money, so employees can have children.”

The problem is not unique to China, which in 2023 was passed by India as the world’s most populous nation. Falling birthrates are often a measure of a country’s move up the economic ladder because fertility rates tend to fall as incomes and education levels go up. But China’s sudden decline in population arrived much sooner than the government had expected. Many families are earning more money than they were a decade ago, but have lost income because of the housing crisis.

Officials have long feared the day when there will not be enough workers to support retirees. Now the government has less time to prepare. More than 400 million people will be 60 or older in the next decade.

China is facing two challenges on this front. Its public pension system is severely underfunded and many young people are reluctant — or are unable — to contribute. A low retirement age has made things worse. After years of deliberation, the government decided on a 15-year plan to gradually increase the official age to 63 for men, 58 for women in office jobs and 55 for women who work in factories. The changes took effect this month.

The party only loosened birth restrictions in 2015 to allow families to have two children, an easing that created a sudden boom. Hospitals had to add beds in the corridors because there weren’t enough.

But the moment was short-lived. By 2017, births started declining every year until last year.

In 2021, panicked officials loosened China’s birth policy again, allowing couples to have three children. It was too late. The next year, so few babies were born that the population began to shrink for the first time since the Great Leap Forward, Mao Zedong’s failed experiment that resulted in widespread famine and death in the 1960s.

China has one of the lowest fertility rates in the world, far below what demographers refer to as the replacement rate required for a population to grow. This threshold requires every couple, on average, to have two children.

Experts said the number of births would likely continue to fluctuate.

“For a country of 1.4 billion a half million more births is not much of a rebound at all,” Wang Feng, a professor of sociology at the University of California, Irvine. “This is in comparison to the lowest year, in 2023 when the pandemic certainly put a pause on childbearing.”

Many young Chinese people are quick to rattle off reasons not to have children: the rising cost of education, growing burdens of taking care of their aging parents and a desire to live a lifestyle known as “Double Income, No Kids.”

For women, the sentiment is especially strong. Daughters who were the only children in their families received education and employment opportunities their parents often did not. They have grown up to become empowered women who see Mr. Xi’s appeals to them to do their patriotic duty and bear children as one step too far. Many of these women have said that deep-seated inequality and insufficient legal protections have made them reluctant to get married.

The steep drop in babies is having a drastic effect on health care, education and even the consumer market. Companies that once minted money selling baby formula to feed a baby boom are now making shakes with calcium and selenium for older adults with brittle bones.

Nestlé, the world’s largest food company, is shutting a factory for the China market that employs more than 500 people halfway across the world in Europe. The company will focus on selling premium baby products and expanding its offering in adult nutrition in China, a spokesman said.

The pressure on China’s health care system is even more pronounced. Dozens of hospitals and maternal health clinic chains have reported closing over the past two years.

On social media forums, nurses specializing in obstetrics have talked about low pay and lost jobs. One doctor told state media that being in obstetrics, once considered an “iron rice bowl” position with guaranteed job security, had become a “rusty iron rice bowl.”

And some smaller hospitals have stopped paying their staff, Han Zhonghou, a former official at a hospital in northern China, told a Chinese magazine.

“Life for maternal and child hospitals,” Mr. Han said, “is getting harder and harder by the year.”