11.4.1—Population growth and structure

Population growth changes the potential labour force and the number of consumers. Age structure, dependency ratios, migration, fertility and life expectancy determine when the effect appears and which services are needed.

A larger working-age population can raise potential output if jobs, skills and capital keep pace. A larger dependent population can raise spending on health, education or pensions and change saving patterns.

A young population may require immediate school investment and later add workers; an ageing population may have high health needs while shrinking the active labour share.

Population growth is not automatically economic growth, and a larger population can reduce income per person if output grows more slowly.