• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Describe and explain the challenges and opportunities countries face when there is a Shrinking Labour Pool and Old Age Dependency.

Extracts from this document...

Introduction

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. ...read more.

Middle

Some of these services may also have to be provided for people below 60, as they are unable to find work due to discriminatory factors in their line of work, which puts them out of a job. Not only will high old dependency change almost every dimension of public and private life it may also slow down the overall economic growth of the country this can also be said for a shrinking labour pool. If countries fail to act upon this problem of growing old age dependency there could be serious consequences: there could be a debt crisis, destabilising swings in interest and exchange rates, steep tax hikes, deep benefits cuts and a collapse of civic trust countries where this critical situation is in danger of occurring are Japan, Italy, France etc. A shrinking Labour pool will also provides a challenge for countries as it provides many of the some of the same problems above such as increased government spending on healthcare and cause a slow down of overall economic growth it also provides problems of it's own: * Less qualified people to perform skilled jobs such as doctors nurses and technicians. ...read more.

Conclusion

could pay them minimum wage because they were not in such great demand, This meant that there were in greater profits made by the business which meant that businesses were able to expand and even open new businesses. All this resulted in a rapid economic growth of the country and also more money could be provided for the non-economically active. Youth dependency is not such a great problem as Old age dependency because the young will soon become economically and they do not require much to do this just an education. However some LEDC's such as Nepal Exploit this to their own advantage, Because children need to provide for their families they are sent out to work at an early age so buy employing children below the age of 16 employers can pay them below minimum wage employ them for longer working hours get away with it this increases both profit and efficiency. This may reduce youth dependency but it robs children of their education and the ability to progress further in the working environment the will probably stuck in a manual labour job for the rest of their life. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. U.S. Oil Dependency

    Not only will the U.S economy be hit, but the global economy will be affected as well. United States Imports and Fuel Pricing The United States is the greatest country in the world, and its demands are many. To run a great country, you need great transportation.

  2. Retailing In India - A Government Policy Perspective

    This explains the focus of many developing country policy makers on boosting export-oriented FDI - even while keeping domestic services closed to foreign investors (e.g., India). This overwhelmingly positive impact goes against the view that efficiency seeking multinational companies are exploiting their host countries because they pay low wages and provide fewer benefits than they would at their home markets.

  1. Case Study: The Home Depot

    In this chapter I will show you with some updated Financial data of the company as well as a professional stockbroker's analysis after which we can make a good evaluation whether or not the Home Depot stock is worth purchasing in the situation it is presently in.

  2. Citigroup has successfully faced the challenges of the 19th and 20th centuries and has ...

    Petersburg, Russia are just a few examples. Citigroup also started a separate Consumer Finance group called CitiFinancial to address the demands for cars, houses and luxury goods especially in developing economies. This strategic move has been a bit hit in these countries as people become more and more affluent.

  1. Living Wage

    is a very long time, but the benefits of continued free trade and relatively free capital movements to the developing countries as well as to industrial country consumers and most producers outweigh the localized social costs which industrial country governments have to cope with.

  2. This report will establish the opportunities and threats presented to Sony by the EU ...

    Sweden: home to world class multinationals with a populace of 8,861.4 million. Sweden's GDP per head is $25,826 also compared to cost of living in PPP it is $19,588. Many companies have established headquarters in Sweden e.g. Ericsson which fuel Swedish domestic concerns that it is becoming a trend.

  1. The division of labour.

    Therefore this small business achieves the allocative efficiency. Similarly, the resource efficiency of an economic system also depends on the method of division of labour. It's a good way to show how this rule works by comparing the efficiency of two extreme type of economic system, which are central-planed economic system and free-market system.

  2. Has Japan really benefitted economically as a result of the World Cup 2002?

    With increased tourism and disposable income during the World Cup the Japanese firms could take advantage from advertising and increasing supply. Urban development is the construction of infrastructure for property development, which in Japan's case took into account the development of new hotels, roads and subway lines around the country.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work