Demographic Transition and Regional Employment

Thanks to the strictly implemented one-child policy, China effected a demographic transition within a short period of time compared to most developed countries. This period of demographic transition is characterized by a steep drop in fertility, rapid decline in the proportion of youth, slowdown of working-age population growth, and a rapid increase in the proportion of elderly over time. When the pace of the decline in the proportion of youth exceeded that of the increase in the proportion of elderly, China began to enjoy a sufficient labor supply, a result of productive population structure. But as the demographic transition continues, the growth in the working-age population slackens, whereas the aging of the population speeds up. These changes raise key challenges to China.