Aging population is one of the most significant and challenging issues in most developed countries. In Australia, during 1994 to 2014, the percentage of people aged 65 years and over increased from 11.8% to 14.7%, and the percentage of those aged 85 and over nearly doubled from 1.0% to 1.9% (Australian Bureau of Statistics, 2014). On the contrary, the total number of people aged under 15 years fell 2.8% from 21.6% to 18.8% (Australian Bureau of Statistics, 2014). As the decrease of fertility and mortality rates, it is also projected that by 2044-2045, around 25% Australians will be aged 65 or more (Australia Government Productivity Commission, 2005). These indicate that Australia’s population is considerably aging. An aging population will
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According to Australian Bureau of Statistics, during 2011 to 2012, the overall labour force participation rates between the 20-24 age group and the 45-54 age group were roughly stable (around 85%-75%) while it declines dramatically from the 55-64 age group with 75% to 60% for males and females respectively (Figure1). In addition, it is predicted that by 2044-45, the aggregate labour force participation rates will fall by approximate 7 percent (Australia Government Productivity Commission, 2005). This indicates that the proportion of citizens who are employed or actively seeking one is lower in elder Australians. For this reason, the more people shift to older age bracket, the lower labour supply …show more content…
Historically, the average weekly hours worked in elder labours is lower than in younger labours (Australia Government the Treasury, 2015). As the increasing percentage of older workers in labour market, it is projected that the average hours worked will decrease from 34 hours in 1997 to 32 hours in 2047 (Figure 2, Australia Government the Treasury, 2015). Working population and labour productivity both can determine economic growth. The lower labour participation rates indicate the fewer working population as well as the lower average weekly hours worked leads to the lower labour productivity. Therefore, with the increase of aging population, Australia’s economy is expected to experience lower growth (Savic, 2013). In terms of financial burden of the government, it is generally though that older citizens have higher demand of social services such as health care and aged care. In Australia, health care consists of pharmaceutical benefits scheme, hospital costs and Medicare costs, while aged care services funded by governments include residential service and community service. In fact, compared with the young, the elderly received health care significantly more (Figure 3, Australia Government Productivity Commission, 2005). For instance, Australian government’s health expenditure on aged 65-69
According to Australian Bureau of Statistics, during 2011 to 2012, the overall labour force participation rates between the 20-24 age group and the 45-54 age group were roughly stable (around 85%-75%) while it declines dramatically from the 55-64 age group with 75% to 60% for males and females respectively (Figure1). In addition, it is predicted that by 2044-45, the aggregate labour force participation rates will fall by approximate 7 percent (Australia Government Productivity Commission, 2005). This indicates that the proportion of citizens who are employed or actively seeking one is lower in elder Australians. For this reason, the more people shift to older age bracket, the lower labour supply …show more content…
Historically, the average weekly hours worked in elder labours is lower than in younger labours (Australia Government the Treasury, 2015). As the increasing percentage of older workers in labour market, it is projected that the average hours worked will decrease from 34 hours in 1997 to 32 hours in 2047 (Figure 2, Australia Government the Treasury, 2015). Working population and labour productivity both can determine economic growth. The lower labour participation rates indicate the fewer working population as well as the lower average weekly hours worked leads to the lower labour productivity. Therefore, with the increase of aging population, Australia’s economy is expected to experience lower growth (Savic, 2013). In terms of financial burden of the government, it is generally though that older citizens have higher demand of social services such as health care and aged care. In Australia, health care consists of pharmaceutical benefits scheme, hospital costs and Medicare costs, while aged care services funded by governments include residential service and community service. In fact, compared with the young, the elderly received health care significantly more (Figure 3, Australia Government Productivity Commission, 2005). For instance, Australian government’s health expenditure on aged 65-69