The measure represents the proportion of a population that is composed of individuals typically considered economically dependentthose under 15 years of age and those 65 years of age and oldercompared to the economically productive segment of the population, generally those between 15 and 64 years old. This ratio is often expressed as a percentage. For instance, a ratio of 50 indicates that there are 50 dependents for every 100 working-age individuals. This metric helps to illustrate the strain on the working population to support the young and elderly.
This calculation offers valuable insights into the potential economic challenges and opportunities a country or region may face. A high ratio can indicate a greater burden on the working population, potentially leading to higher taxes or reduced social services. Conversely, a low ratio may suggest a larger available workforce and greater economic productivity. Historically, shifts in birth rates, mortality rates, and migration patterns have significantly influenced this demographic indicator, leading to varied societal and governmental responses focused on workforce planning, healthcare provisions, and pension systems.