Aging Population In China
China's population is ageing. By 2050 more than a quarter of the population will be over 65 years old and young generations will face an extraordinary burden. China now has been moving toward lessening family planning restrictions in recent years because of some factors, including a looming labor crisis. China’s working age population is drastically shrinking. Based on the United Nations projects, China will lose 67 million workers from 2010 to 2030. Meanwhile, China’s elder population is expected to rise from 110 million in 2010 to 210 million in 2030.
Population aging may affect output for two reasons. First, population aging means that large portion of people stop working because their age is not encouraged them to work anymore. If there are no compensation mechanisms at work for the elder, there will be only a small number of population engaged in productive work. It will make total output per capita will decline. Second, the savings rate varies by age. Working age people save the most and also because they have a reason to save in anticipation of retirement. If the elder are not working or have little income, thus they have little or no ability to save. If a country has a high share
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The NBS criteria for working age is 15 to 59 years old. Many have called for the government to relax the policy even though there is no guaranteed that it would solve the working age dilemma right away. This working age problem mainly affects the labor wages. With shrinking supply of labor, the wages will increase significantly and make China a less attractive location for production and investment. In addition, China will faces another problem. Working age people who can perform the most physically demanding work are decreasing in size significantly. In the next ten years, it is estimated that the number of Chinese citizens age 15 to 24 will decrease by
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