Variations in these demographic components affect the labour force, dependency ratios and demand for public services. The following points summarise the main impacts:
High birth rates increase the youth‑dependency ratio, creating pressure on education and health services but can provide a future labour surplus (demographic dividend) if jobs become available.
Low birth rates raise the elderly‑dependency ratio, increasing pension and healthcare costs and potentially leading to labour shortages.
High death rates reduce the effective labour force and can signal poor health infrastructure, limiting productivity.
Positive net migration can supplement a shrinking labour force, bring skills, and stimulate demand, but may also create integration challenges.
Negative net migration often reflects limited domestic opportunities and can exacerbate brain‑drain, slowing technological adoption.
Suggested Diagram
Suggested diagram: Population pyramid comparing a high‑fertility country (wide base) with a low‑fertility country (narrow base, larger elderly cohort).
Exam Practice Questions
Define birth rate, death rate and net migration. Explain how each is measured.
Using the table above, calculate the approximate annual population growth rate for Japan.
Discuss two reasons why a country might experience a falling birth rate as it develops.
Explain how high net migration can affect the dependency ratio in a receiving country.
Evaluate the potential long‑term economic consequences for a country with a rapidly ageing population.
Key Summary Points
Birth, death and migration rates are expressed per 1,000 population per year.
Developed countries tend to have low birth rates and low death rates; developing countries often have high birth rates and higher death rates.
Net migration can either offset or accentuate natural population change.
Understanding these variations helps economists predict labour‑market trends and plan appropriate economic policies.