• 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. Causes of the Great Depression

    The Breakdown of International Trade Another factor contributing to the Great Depression was America's position in international trade. Protectionist impulses would drive nations to protect domestic production against competition from foreign imports by erecting high tariff walls. President Herbert Hoover and the Republican Congress managed to do just this when

  1. Retailing In India - A Government Policy Perspective

    The following are some changes that are vital in the current Indian FDI Policy: Change in Focus: The current Indian FDI policy lays too much emphasis on export promotion and efficiency-seeking FDI only. There has been a belliegerent neglect of market seeking FDI with the apparent objective of trying to protect the domestic industry.

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

    The amazing pace at which these economies are growing and the consumer spending is increasing has provided and continues to provide unparallel opportunities in these once ignored parts of the world. The political leadership in these countries understands the importance of globalization and privatization and there is a paradigm shift in the attitude towards MNCs.

  1. Case Study: The Home Depot

    You can reach the commercial desk by phone, fax or go and visit them at the desk itself. When a professional contractor orders its good, they can request to have the product to be delivered at the site the professional contractor is working and this service is given seven days

  2. Living Wage

    African exporters virtually free access to the European market, only a single country, Mauritius, has expanded manufactured exports at a rapid rate. Likewise, it has been estimated that Mexican average productivity is about one-fifth that in the United States. Low productivity has to do with levels of training, but also

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

    They produce second to lowest out of the EU members in gross domestic product of $11,530 per capita and earn the lowest GDP per head in PPP of $12,476 in the EU. Also they are rather a distance away from other EU countries but despite that they trade rather well

  2. The division of labour.

    The first thing that should be considered is the allocative efficiency of an economic system. A economic system with allocative efficiency is a system that can "produce the goods and services that people actually want, in the correct quantities". (Economic System lecture hand out, 2003, P1)

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