Asia’s Workforce Is Rapidly Aging — And Many Countries Are Not Ready

Brink News
Date: Dec 21, 2020
By: Alicia García-Herrero

An elderly man walks in a street in Tokyo’s Shinbashi area on May 29, 2020. (Photo by Charly TRIBALLEAU / AFP) (Photo by CHARLY TRIBALLEAU/AFP via Getty Images)

Many Asian economies will age more rapidly over the next several decades, including Hong Kong, Japan, Mainland China, Singapore, South Korea, Taiwan and Thailand. For all of these countries, the working-age population peaked in 2015 and will decline at an accelerating rate in the coming decades. By 2050, the proportion of elderly in their populations is expected to increase to 27% — from just 7% in 1995.

A Nataxis report recently explored the consequences of this important trend at the macro- and sectoral-level. It showed that a reduced labor supply creates a drag on growth. But this can be mitigated by higher labor participation, capital investment and policies that address productivity.  

Nonetheless, this is a gravity-defying act.

Aging Gracefully?

With fewer workers and an increased elderly population requiring more savings to sustain spending in retirement, greater pressure on public finances is to be expected. As such, the more prepared an economy can be while still youthful, the more likely it is to age gracefully.     [FULL  STORY]

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