Population Decline: Aging Population and Low Fertility

As a result of declining fertility rates and lengthened life expectancy, the population of the world will inevitably age in the future.  Because this trend is already present in many of the European nations, we can look at demographic shifts in Europe and project similar patterns onto other regions of the world for a plausible view of their future. 

The significance of the aging population of Europe only becomes clear with historical context.  At the end of the Second World War, the nations of Europe built up enormous social welfare systems.  Many of these programs, specifically benefits for the elderly, were put into place with the assumption that the population would continue to grow so that the young people who put money in would always outnumber the old people who took money out.  For the greater part of the century, they were right; population growth kept the system running smoothly.  

In the nineties, however, the populations of major European countries began to experience a declining birthrate.  The reasons for this are still hotly debated.  As a result, many countries in Europe have begun to import young immigrants to make up for the youth deficit.  However, since the Eurocrisis and the subsequent downturn of the European economy, the continent has become a less attractive place for skilled immigrants.  The shortage of skilled labor is enough to pose major challenges to the economy itself, which in turn will further lower the birthrate and discourage the migration of skilled labor.