An increasing ageing population poses problems to a country and the economy. Countries, especially developed ones, such as Japan and Singapore have a high proportion of people aged 64 and above than a youthful working population.
This kind of a demography has a negative impact on the economy of a country. An increase in the ageing population suggests that fewer people are being born to counter the gap.
Even though good health practices causes people to live more, there won’t be an ageing problem if births are high to fill up the youthful population.
But if births are low and more people live longer, then there’s an ageing problem. Two major problems of an ageing population:
Decrease in young skilled labour
Old people are seldom strong and efficient than young people especially in hard jobs. This impacts the productivity of a business.
With young, fresh and enthusiastic minds, production is fast and efficient. In addition, old people often retire when they feel that they’re not strong enough to work anymore and the business is affected by labour shortages.
Youth labour is in high demand in countries such as Japan and Singapore.
Costs and strain to the Government and the Working population
An increase in the ageing population forces the government to pay for retirement benefits, build more elderly homes and hospitals. The working population, which is short, is forced to take care of more old people.
One single child have to take care of two parents and the child’s child will have to take care of both his parents and grand-parents.
Most developed tend to cope with an ageing population than less developed ones. Lack of funds and resources is inadequate to support an increasing ageing number.
Old people in LEDCs tend to stay home than in an expensive elderly home. Health centres are inadequate to accommodate a high number of old people.
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