The proportion of a population that is economically dependent on the working-age population is a key demographic indicator. This metric relates the number of individuals typically not in the labor force (dependent population) to the number of individuals typically in the labor force (working-age population). Dependent populations generally include those under 15 years of age and those 65 years of age and older. For instance, a value of 0.5 indicates that there are 50 dependents for every 100 working-age individuals. This provides a snapshot of the potential economic burden placed on the productive segment of society.
This demographic indicator is crucial for understanding the potential strain on a country’s resources and infrastructure. High values can indicate challenges related to providing adequate healthcare, education, and social security benefits. Conversely, low values may suggest a potential labor surplus and higher economic growth. Historical trends in this measurement reveal shifts in population age structures, impacting social and economic planning. It aids governments and organizations in anticipating future needs and developing appropriate policies.