Impact Of Population Aging Issues Of Labor Supply

At present, the western developed countries are puzzled by the problem of population aging, the aging population in developed countries is not only an economic problem but also a social problem, its obstructive effect on the economic and social development is already a plain truth. From1978to2010, China has achieved average annual GDP growth rate of9%, one of the most important reason is the obvious advantages of low-cost labor. Due to the implementation of Family Planning Policy in the1970s, the population growth rate of China has notably reduced. China’s working-age population declines from a peak of940million to939million in2011and936million in2012, the working-age population has reached the historical turning point, and the pattern of labor supply begins to change. The diminishing working-age population weakens the low-cost labor advantage, which is important to our economic growth."getting old before getting rich" is drawing closer, which offers a serious challenge to the transformation of the pattern of economic development.This research starts from the labor supply perspective to study how an aging population influences the transformation of the pattern of economic development in our country. Analysis of the population pyramids indicates that an aging population makes the age structure of population and workforce aging gradually, at the same time, the labor force participation rate in our country has a tendency of further reduction, which directly affects the quantity of labor force in the future. An ageing population will also restrict the improvement of labor productivity, prompt China to increase expenditure on health care and pension security, increase the government financial pressure, and reduce the households’ investment in education. All of these aspects bring great negative influence to the economic development of our country. In light of the experience of foreign counterparts, we can take measures to work out the problems brought by population aging, which includes adjusting the current population policy, adopting flexible family planning policy to gradually reverse the ageing trend; Adjusting the current retirement system in our country, raising the retirement age properly and encouraging the elderly to join in work to relieve the pressure of the decreasing labor force; Increasing investment in education to improve the productivity in our country, promoting social and technological progress and economic development, which can fundamentally solve the problem of population ageing.