Suryaa Now International Desk: China, the world's second largest economy with the largest population, is slipping into a serious demographic crisis. In the history of China... China, the world's second largest economy with the largest population, is slipping into a serious demographic crisis. The latest statistics revealed that the Old-Age Dependency Ratio has surpassed the Child Dependency Ratio, which has never been seen before in the history of China. The rapid increase in the number of elderly people relative to the working-age population, while the rapid decline in the birth rate, is raising serious concerns about China's economic and social future.
Modern lifestyles, high education and upbringing costs coupled with the impact of the strict one-child policy implemented over the past few decades are driving youth away from marriage and childbearing. Due to this, the number of new born children in the country is drastically decreasing every year, while the life expectancy is increasing due to the increase in medical facilities and the number of elderly people is increasing rapidly. This demographic disparity is placing an unexpected increase in the burden of supporting the elderly and pensions on young workers. This unprecedented demographic shift is putting severe pressure on China's employment sector, pension funds and healthcare systems. A shrinking youth workforce threatens to decelerate the growth rate of the economy in addition to reducing the availability of labor required by industries.
The Chinese government is facing serious challenges as it has to allocate huge funds for social security schemes to meet the needs of an aging population. In order to effectively deal with this population crisis, the Chinese government has been announcing many economic incentives including allowing couples to have three children, but the expected results are not coming. In view of the increased cost of living, the reluctance of the youth to bear children has become a major headache for the government. Social and economic analysts warn that if this situation continues, China may face a serious shortage of human resources in the near future.
