Age-population ratio of those in the labor force to those not in the labor force
Age dependency ratio as of 2017[1]
The dependency ratio is an age-population ratio of those typically not in the labor force (the dependent part ages 0 to 14 and 65+) and those typically in the labor force (the productive part ages 15 to 64). It is used to measure the pressure on the productive population.
Consideration of the dependency ratio is essential for governments, economists, bankers, business, industry, universities and all other major economic segments which can benefit from understanding the impacts of changes in population structure. A low dependency ratio means that there are sufficient people working who can support the dependent population.[2]
A lower ratio could allow for better pensions and better health care for citizens. A higher ratio indicates more financial stress on working people and possible political instability.[citation needed] While the strategies of increasing fertility and of allowing immigration especially of younger working age people have been formulas for lowering dependency ratios, future job reductions through automation may impact the effectiveness of those strategies.
^"Age dependency ratio". Our World in Data. Retrieved 15 February 2020.
^Simon C, Belyakov AO, Feichtinger G (November 2012). "Minimizing the dependency ratio in a population with below-replacement fertility through immigration". Theoretical Population Biology. 82 (3): 158–169. doi:10.1016/j.tpb.2012.06.009. PMC 3458215. PMID 22781918.
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