Business – 6.1 External influences – Social and demographic | e-Consult
6.1 External influences – Social and demographic (1 questions)
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The declining growth rate suggests a slowing increase in the working‑age population, which can lead to several labour‑market effects:
- Potential skill shortages: Fewer new entrants may mean that sectors reliant on young, technically skilled workers (e.g., IT, engineering) could experience gaps, driving up wages and increasing recruitment costs.
- Higher dependency ratio: As the proportion of retirees grows relative to workers, the tax base may contract, putting pressure on public pension schemes and possibly prompting employers to raise retirement ages.
- Increased competition for talent: Companies may intensify efforts to retain existing staff, invest in training, or attract foreign workers, influencing immigration policy and corporate HR strategies.