Answer to Question #261221 in Sociology for Pilisiwe

Question

Discuss the major developmental challenges policymakers will have to think about in an aging population

Answer 1

The expected drop in population growth and labor force participation rates will have an impact on long-term economic growth and the composition of growth. Longer-run growth rates are influenced by labor force growth and structural productivity growth, which measures how successfully the economy combines labor and capital inputs to generate output. Labor force growth is expected to be slower than in previous decades, placing downward pressure on long-term economic development. The difficulty of losing competent individuals and attracting new workers must be considered by policymakers, since this may have an influence on the production rate and hence the broader economy.