Connect with us

Asean

This is the cost of Asia’s ageing population

In some countries, like Japan, the population is ageing rapidly, and the labor force is shrinking. In others, like the Philippines, young people are flooding the job market in search of work

Avatar

Published

on

When it comes to tackling demographic change in Asia, there’s no one-size-fits-all strategy for policymakers.

In some countries, like Japan, the population is ageing rapidly, and the labor force is shrinking. In others, like the Philippines, young people are flooding the job market in search of work.

As our chart shows, the impact of ageing could potentially drag down Japan’s average annual GDP growth by 1 percentage point over the next three decades.

While in India and the Philippines, which have some of the youngest populations in the region, a growing workforce could potentially increase GDP by that same amount.

The chart also highlights the dimension of the challenge. Overall for Asia, the demographic dividend, where a young, growing work force (aged 15-64) helped drive the region’s rapid growth in recent decades, is coming to an end. Fertility rates are declining and people are living longer.

Now many countries, particularly in East Asia, will be the fastest-aging societies in the world in the next few decades. The region’s population growth, which is already negative in Japan, is slowing and projected to fall to zero by 2050.

More than a third of the population in Singapore and South Korea are at least 50 years old; in Japan that share is close to half the population.

As a population grows older, there will be fewer workers. Asia’s workforce is expected to shrink by hundreds of millions of people.

For instance, China could potentially see a decline of 170 million people in its working-age population over the next three decades. Over time, a shrinking workforce and ageing population can mean a rise in healthcare costs and pension expenditure. This puts pressure on government budgets, and can translate into lower growth, unless a country has policies that support productivity and high quality jobs.

By contrast, other Asian economies, such as India and Indonesia, should benefit from a demographic dividend, with a growing working-age population and higher fertility rates.

As these demographic trends shape these economies’ future, the role of policies will matter. In particular, labor market reforms can be key for ageing societies. By encouraging foreign workers, including through guest worker programs, migration can soften the adverse growth impact of rapid aging by partially offsetting the expected decline in the domestic labor force.

Raising the labor force participation of women by, for example, expanding child-care facilities in countries like Japan, and promoting flexible employment can also help reduce labor shortages, and mitigate the adverse growth effects of aging.

Source link

Advertisement
Comments

Asean

Trade War Incentive Schemes flourishing in ASEAN

Countries such as Thailand, the Philippines, Malaysia, and Indonesia have unveiled an array of incentive packages to entice businesses affected by the US-China trade war.

Avatar

Published

on

Governments across ASEAN have been unveiling an array of incentive packages to entice businesses affected by the US-China trade war.

(more…)

Continue Reading

Corporate

Employers should hire new workers based on their potential

Avatar

Published

on

A Thailand representative office is essentially a branch of a foreign corporation

58 percent of employers have hired employees based on their potential, and 94 percent of them said their potential-based hires had become a valuable part of their teams. 

(more…)

Continue Reading

Asean

ASEAN bucks record 155 billion USD FDI in 2018

The flow of foreign direct investment (FDI) into the 10 ASEAN countries has gone up for the third consecutive year, breaking a record 155 billion USD set in 2018.

Olivier Languepin

Published

on

Last year inflows to the ten-member Association of South East Asian Nations (ASEAN) were up 11.5%, from US$147 billion in 2017 to $155 billion in 2018, according to new UNCTAD research.

(more…)

Continue Reading

Must Read

Upcoming Events

Mar 11

Food science conferences

March 11 @ 8:00 am - March 12 @ 5:00 pm BMT
Mar 11

Food science conferences

March 11 @ 9:00 am - March 12 @ 5:00 pm BMT
Mar 22

41st World Dental Science and Oral Health Congress

March 22 @ 9:30 am - March 23 @ 5:00 pm BMT
Mar 26

8th Anti-Corruption Compliance Asia Pacific Summit 2020

March 26 @ 9:00 am - March 27 @ 5:30 pm SMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,189 other subscribers

Trending