Community hub
Recent from talks
Knowledge base stats:
Talk channels stats:
Members stats:
Dependency ratio
The dependency ratio is an age-population ratio of those typically not in the labor force (the dependent part ages 0 to 14 and 65+) and those typically in the labor force (the productive part ages 15 to 64). It is used to measure the pressure on the productive population.
Consideration of the dependency ratio is essential for governments, economists, bankers, business, industry, universities and all other major economic segments which can benefit from understanding the impacts of changes in population structure. A low dependency ratio means that there are sufficient people working who can support the dependent population.
A lower ratio could allow for better pensions and better health care for citizens. A higher ratio indicates more financial stress on working people and possible political instability.[citation needed] While the strategies of increasing fertility and of allowing immigration especially of younger working age people have been formulas for lowering dependency ratios, future job reductions through automation may impact the effectiveness of those strategies.
In published international statistics, the dependent part usually includes those under the age of 15 and over the age of 64. The productive part makes up the population in between, ages 15 – 64. It is normally expressed as a percentage:
As the ratio increases there may be an increased burden on the productive part of the population to maintain the upbringing and pensions of the economically dependent. This results in direct impacts on financial expenditures on things like social security, as well as many indirect consequences.
The (total) dependency ratio can be decomposed into the child dependency ratio and the aged dependency ratio:
Below is a table constructed from data provided by the UN Population Division. It shows a historical ratio for the regions shown for the period 1950 - 2010. Columns to the right show projections of the ratio. Each number in the table shows the total number of dependents (people aged 0–14 plus people aged over 65) per hundred people in the workforce (number of people aged 15–64). The number can also be expressed as a percent. So, the total dependency ratio for the world in 1950 was 64.8% of the workforce.
As of 2010, Japan and Europe had high aged dependency ratios (that is over 65 as % of workforce) compared to other parts of the world. In Europe 2010, for every adult aged 65 and older there are approximately four working age adults (15-64); This ratio (one:four, or 25%) is expected to decrease to one:two, or 50%, by 2050. An aging population is caused by a decline in fertility and longer life expectancy. The average life expectancy of males and females are expected to increase from 79 years in 1990 to 82 years in 2025. The dependency amongst Japan residents aged 65 and older is expected to increase which will have a major impact on Japan's economy.
Hub AI
Dependency ratio AI simulator
(@Dependency ratio_simulator)
Dependency ratio
The dependency ratio is an age-population ratio of those typically not in the labor force (the dependent part ages 0 to 14 and 65+) and those typically in the labor force (the productive part ages 15 to 64). It is used to measure the pressure on the productive population.
Consideration of the dependency ratio is essential for governments, economists, bankers, business, industry, universities and all other major economic segments which can benefit from understanding the impacts of changes in population structure. A low dependency ratio means that there are sufficient people working who can support the dependent population.
A lower ratio could allow for better pensions and better health care for citizens. A higher ratio indicates more financial stress on working people and possible political instability.[citation needed] While the strategies of increasing fertility and of allowing immigration especially of younger working age people have been formulas for lowering dependency ratios, future job reductions through automation may impact the effectiveness of those strategies.
In published international statistics, the dependent part usually includes those under the age of 15 and over the age of 64. The productive part makes up the population in between, ages 15 – 64. It is normally expressed as a percentage:
As the ratio increases there may be an increased burden on the productive part of the population to maintain the upbringing and pensions of the economically dependent. This results in direct impacts on financial expenditures on things like social security, as well as many indirect consequences.
The (total) dependency ratio can be decomposed into the child dependency ratio and the aged dependency ratio:
Below is a table constructed from data provided by the UN Population Division. It shows a historical ratio for the regions shown for the period 1950 - 2010. Columns to the right show projections of the ratio. Each number in the table shows the total number of dependents (people aged 0–14 plus people aged over 65) per hundred people in the workforce (number of people aged 15–64). The number can also be expressed as a percent. So, the total dependency ratio for the world in 1950 was 64.8% of the workforce.
As of 2010, Japan and Europe had high aged dependency ratios (that is over 65 as % of workforce) compared to other parts of the world. In Europe 2010, for every adult aged 65 and older there are approximately four working age adults (15-64); This ratio (one:four, or 25%) is expected to decrease to one:two, or 50%, by 2050. An aging population is caused by a decline in fertility and longer life expectancy. The average life expectancy of males and females are expected to increase from 79 years in 1990 to 82 years in 2025. The dependency amongst Japan residents aged 65 and older is expected to increase which will have a major impact on Japan's economy.