Demographic trends in UK - Opportunities and threat.

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DEMOGRAPHIC TRENDS IN UK-Opportunities and threat

Introduction

  British society has changed over the last 50 years. The population is growing slowly. But it is ageing and becoming more multi ethnic minority. Social context in which organisation exist with economic and political contexts imposes constraint upon them. It also provides opportunities and makes threats. Organisation respond to these depends upon their strategic management skill. The high level of awareness of food system by the general public and participation of National Health Service ageing the UK population  which make good contribution to national GDP. At the same time the growth of ethnic minorities threatening UK.

Ageing population

  People are important in economy as both producers and consumers. The aim of business is to produce goods or service   that people want. This can not take place with out people which is on of the factors of production in economics. Working population is economically active population and it is traditionally drawn from the age group 16-64.  as concluded by david Farnham 1999 In 1979 working population was 26 million and it increased to 28.9million in 1990. Also it projected to rise 30 million by 2006. Because of ageing profile of the population is ageing. Also the working population is also ageing. This makes major contribution in the working population.

  According to Andrew Harrop, (2004) Over 100 years there has been dramatic fall in death rate in U.K (www.ageconcern.org.uk). Implications of the above in economy as follows,

 1. Patterns of demand changes for age groups which will have the        implications for production of gods and service.

2. Pensioners do not work but the burden on those in work will increase to pay   the support fro the service like health care via taxation.

3. Older people are less mobile than younger people.

 

   The ageing of the population is expected to result in substantial increase in the cost of maintaining health care and pension programs and that is a source of widespread concern. However proper assessment require  that attention be given to all categories of government expenditure, including education and others associated with younger age groups, and not just associated with the older people. According to Frank T and Byron G, 1999 it is important to recognise that the population changes affect not only the demand side of economy, but also the supply side i.e the economy’s productive side.

   Alistair McConnachie, (2004) states that  Britain’s ageing population is a “demographic time bomb” (,10 -11-2004).  More over there will not be enough people in job to pay for the cost of demographic change, such as pensions, unless immigration is increased substantially.

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  In 1990 the highest rates of unemployment were among the young males between 16 and 20 at 20 per cent. This is because of increase of the ageing population in the working population.

Opportunity

  According to Andrew Harrop,(2004) at present, the charity estimates that between 430,000 and 1 million people aged 50-69 can be considered potential additional workers. If these people were in employment it would be add between £12.4 billion and £29.7 billion to annual economic output. In 2001 6.7 million people over 50 were in paid works in the UK and they contributed £201 billion ...

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