Dependency ratio

Dependency ratios are ratios of the numbers of dependents (youths aged 0–14 and/or elderly aged 65+) to the number of working-age adults (15–64). They serve as indicators of population age structures and social support requirements.

A lower dependency ratio means that there are more working-age adults to support dependents.

A lower ratio could allow for better pensions and better health care for citizens. A higher ratio indicates more financial stress on working people and possible political instability. While the strategies of increasing fertility and of allowing immigration especially of younger working age people have been formulas for lowering dependency ratios, future job reductions through automation may impact the effectiveness of those strategies.

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