Working-Age Population

Published Oct 26, 2023

Definition of Working-Age Population

The working-age population refers to the portion of the population that is considered to be of working age and is typically defined as individuals between the ages of 15 and 64 years old. It represents the group of individuals who are available to participate in the labor force and contribute to economic activity.

Example

For example, let’s consider a country with a total population of 50 million people. To determine the working-age population, we exclude individuals who are under 15 years old (children) and those who are 65 years old or older (retirees). If we assume that approximately 20% of the population falls into these age groups, then the working-age population would be around 40 million people.

Within this working-age population, there will be individuals who are employed, unemployed, or not participating in the labor force. The labor force participation rate measures the proportion of the working-age population that is either employed or actively seeking employment.

Why Working-Age Population Matters

The working-age population is a crucial factor in determining a country’s potential for economic growth and development. A large working-age population suggests a larger pool of potential workers, which can support economic activity and productivity.

Governments and policymakers consider the working-age population when formulating labor market policies, social welfare programs, and economic strategies. Understanding the size and composition of the working-age population helps in forecasting labor market trends, addressing issues such as unemployment, skills shortages, and ensuring economic stability.

Moreover, changes in the working-age population, such as shifts in demographic patterns or fluctuations in birth rates, can have long-term implications for retirement systems, healthcare, and overall economic sustainability.