Definition
A measure showing the ratio of the "dependent" population (those typically not in the labor force: people under 18 and over 64) to the "working-age" population (those typically in the labor force: people aged 18-64). It indicates the number of dependents for every 100 working-age individuals.
Why It Matters
This ratio is a critical indicator of the economic burden on a society's productive workforce. A high dependency ratio can signal strain on social services, healthcare systems, and pension schemes, influencing economic vitality and public policy.
Specific Relevance for Professionals:
Marketers
Influences demand for products and services related to childcare, education, and elder care. A high youth dependency ratio might indicate a strong market for family-focused goods, while a high elderly dependency ratio points to opportunities in healthcare and retirement services.
Researchers
Fundamental for studying demographic shifts, the sustainability of social security systems, economic productivity, and the impact of an aging population or high birth rates on societal structures.
Consultants
Crucial in economic forecasting and market analysis for industries tied to social services or workforce dynamics. A consultant might advise a client on the viability of investing in a region based on its long-term demographic sustainability and labor force burden.
Public Policy Workers
A vital metric for long-term fiscal planning, social security reform, healthcare budgeting, and educational infrastructure development. It helps assess the financial strain on public resources due to the proportion of the non-working population.
