Answer to Question #259677 in Sociology for Pilisiwe

Question

Discuss the socio-economic and demographic implications of an aging population; and the major developmental challenges policymakers will have to think about.

Answer 1

Long-run economic growth and the mix of growth will be affected by the predicted decrease in population growth and labor force participation rates. Labor force growth and structural productivity growth — how well the economy combines labor and capital inputs to produce output — are significant drivers of the economy's longer-run growth rate. Demographics predict that labor force growth would be slower than in prior decades, putting downward pressure on long-term economic growth. The policymakers have to think about the challenge of loosing the skilled personnel and recruiting new works which may have impact to the production rate thus overall economy.