Ageing Populations
- Ageing populations have multiple impacts:
- Increase costs on residential accommodation, social services, health care, and pensions
- Services such as schools, sports centres, etc. decline as they are not used by older residents
- Family budgets can increase if looking after an aged relative
- There is an increase in the dependency ratio because of a smaller working population
- A smaller workforce means less tax paid to the government leading to less money available to the younger population for education, transport, social amenities etc.
- Ageing populations can also present opportunities such as:
- Lower costs on policing as crime rates reduce
- New market/business opportunities
- In HICs, the elderly are an important market, known as the 'grey economy'
- Firms now cater to this market through holidays (SAGA), mobility aids, health care workers etc.
- Increased opportunities for volunteering and community activism as elderly people have experience
- Longer working lives and contribution to society
- More time can be spent with friends and family and providing care for family members
- In Japan and South Africa, there is a 'granny culture', where the elderly look after their grandchildren, allowing both parents to work
Japan's 'super-aged' population
- More than 1 in 10 people in Japan are now aged 80+, and there are approximately 80 000 centenarians (100+ years)
- This makes Japan the country with the world's oldest population
- By 2036, people 65+ years will represent 33% of the population
- Japan has a low birth rate and struggles to provide for its ageing population
- In 2022, almost half of Japanese firms relied on workers aged 70+
- Farmers are also ageing and Japan's farming population is shrinking and the agricultural sector faces a severe labour shortage
- A shrinking child population is forcing local governments around Japan to close its schools
- The decrease in the size of the youth population reduces competition among young people
Japan's policies
- The government has tried to boost its birth rates
- But, with the cost of living, and long working hours, there has been little success
- The pandemic only worsened the issues, leading to more deaths, and fewer marriages and births
- Japan created the 'Angel Plan' aimed to help couples raise their children by:
- Increasing policies and programmes for paid parental leave, childcare services and child allowances
- In 2019, free preschool education and day-care for children aged 3-5 was introduced
- In 2020, the government increased support by:
- Reduces the cost of fertility treatment
- Raised child allowances
- Expanded free higher education
- Introduced higher allowances for paternity leave - at present Japan has a generous paid parental leave of up to 24 months
- But so far, these policies have not improved Japan's low fertility rate of 1.36 births per woman
- Improve immigration
- Japan has a strict immigration policy
- Migrants are considered temporary 'guest workers' who will eventually return home
- Many Japanese firms resist hiring foreign workers
- In 2018, new legislation allowed foreign workers with vocational skills to stay in the country for up to 5 years, but could not bring their families
- If the foreign worker had advanced skills, then they were allowed to bring their families and live in the country indefinitely
- In June 2023, just 2.4% of the total Japanese population were foreign residents (3.2 million people)
- This also applies to refugees, where just 202 people were granted refugee status out of 3,772 people who applied in 2022
- Create an 'age-free' society
- Japan is looking at creating an 'age-free society' where people are not categorised by their age, but by their ability and motivation to work
- They are encouraging employers to:
- Keep their employees up to the age of 70 or longer
- Hire older people
- Extent their retirement age
- Increase opportunities for older people