In the beginning of last century, the world population was 1.65 billion while the current population reached 7 billion in 2012 (United Nations, Web). Among this 7 billion people, 810 million are older person. According to the United Nations, person of the age 60 is considered as older person, but many developed countries categorize person of the age 65 as older person. In The Study of Population published in 1959 by Philip Hauser and Otis Dudley Duncan, “aging population” was not appeared in it. At that time, the world did not pay much attention to the aging issue as the world population was still young. But it is a big issue to the world as the number of older person exceed the number of younger person now.
The aging population has become a major concern all over the world. The rising life expectancy, declining birth rates and fertility control are some major factors related to the aging population and causing the rising of dependency ratio, increasing government spending on health care and pension, increasing the tax pay by current tax payers, shortage of working population and reducing capital flow in the money market. Among the problems, shortage of labor in the market is a serious concern to the government as labor is a key factor for the economic growth of a country. In order to solve the problems of the aging population, many government and scholars suggest some solutions to it. They propose to alter the immiagration policy, raising the retirement age, encourage participation rate for older person and female workers and increase the birth rate.
Immigration is a direct and fastest way to replace the shortage of worker in the market. Many countries in the world has experienced the aging population problem, different countries have different ways to solve it. Canada is importing the young labor force all over the world to replace the labor supply due to the lost cause by aging. The immigratants help to replace the position that the Canadians do not to work on. Also, “the Conference Board of Canada has found that immigration has a positive impact on innovation at many levels; it asserts that immigrants represent a high proportion of those who are recognized for achievements in research and the arts, that they improve innovation in Canadian businesses and that they expand Canada’s trade relations” (Elegersma, Simeone, Roy-Cesar, Theckedath 8). The immigrants, besides filling up the emply spot causes by shortage of labor in the market, they bring the new life in Canadian trading sector.
The birth rate keeps declining after the baby boom period reach the end of early 1960s and the prolonged life expectancy have caused the shortage of labor force in our market today. Many people who were borned during the baby boom period has reached the retiring age, this could create a gap in the labor market as there are not enough supply of labor force locally. This could slow dow the economy activity. Life expectancy in certain selected...