The Impact of Population Aging on Employment

Abstract

Under the background of the increasingly severe trend of population aging, its impact on China's labor market cannot be ignored. Based on China's population data and employment data from 2013 to 2022, this paper examines the specific impact of population aging on China's labor supply market and demand market through quantitative analysis and horizontal comparison. The results show that: in the labor supply market, population aging will reduce labor supply and increase labor cost, reduce labor participation rate and aging labor structure, and reduce labor quality and innovation ability; In the labor demand market, the trend of industry demand for the elderly is becoming very obvious due to the aging of the population, healthcare, health, leisure and financial services with a focus on pension management are experiencing significant growth, followed by increasing levels of technology and automation, and finally the growth of the service industry. In particular, those related to personal care and home services types of jobs saw growth. Accordingly, the Government should give full play to its macro-control function to ease the pressure of the aging population on the job market and promote the sustainable development of the labor market by encouraging the delay of retirement, increasing the birth rate, strengthening the health infrastructure and services, and the construction of the education system.