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If a country's elderly population continues to increase, what long-term situation may develop in the labour market?

Answer and explanation

Correct answer: Relative shortage of working-age people

A growing elderly population can change the age structure of the labour force. If older people make up a larger share while younger generations become smaller, the proportion of people in working ages may decline. Over time, employers may find it harder to replace retiring workers, especially in sectors requiring particular skills or experience.

This does not mean every country will face an immediate shortage, because retirement ages, migration, technology, participation by older people, and female employment can change the outcome. Nevertheless, the demographic tendency described is a relative shortage of working-age people compared with dependants. Therefore, choice A is correct. The other choices are not automatic consequences of population ageing.

Related tags

Ageing PopulationLabour ShortageWorking Age DeclineElderly ShareAge StructurePopulation CompositionGeographyClass 12 Mcq

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