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

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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.

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