Describe and explain the challenges and opportunities countries face when there is a Shrinking Labour Pool and Old Age Dependency.
Demographic Characteristics of Countries
Present Both Challenges and Opportunities.
Describe and explain the challenges and opportunities countries face when there is
(a) A Shrinking Labour Pool and Old Age Dependency
This situation occurs when there are both low birth and death rates (this mainly occurs in MEDC’s). Because there are low birth rates there are less people of a working age (economically active), as the generation of low birth rates move up the age groups of the population pyramid, the labour pool begins to shrink. In MEDC’s there is longer life expectancy so there are low death rates this results in high old age dependency, because there is an increasing number of people over the age of 60 (non-economically active).
These factors provide a challenge to countries that face them as they result in a dependency ratio imbalance meaning that more people will be dependant than economically active (a high dependency ratio). Therefore this will provide a challenge for the countries government, as they will have to find a way to provide for the dependant. The elderly are sometimes considered to be a social and economic burden on a country as numerous services such as: