Population Aging and Its Impact on Employment

Abstract

This part provides an analysis of the impact of population aging on the supply and demand of labour and employment. As a population ages, the size of the working-age population gradually decreases, which will then reduce labour supply and increase labour costs. Population aging will affect labour demand through various channels. The scarcity of labour and increase in costs will result in its replacement by capital and thus to a certain extent reduce the demand for labour. The impact of population aging on employment depends on relative changes in the supply and demand of labour. To adapt to these changes, we should deepen reform of the labour market, improve the utilization efficiency of labour, postpone the legal retirement age and explore the potential benefits of aging for society.