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Population Dilemmas in Europe

Population Dilemmas in Europe. The Geographic Setting. One of the smallest continents in size 1/8 th of the population lives there Population Density is shrinking Why? Oldest population Lowest birthrate. Births, Deaths and Migration. Total Fertility Rate in Italy = 1

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Population Dilemmas in Europe

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  1. Population Dilemmas in Europe

  2. The Geographic Setting • One of the smallest continents in size • 1/8th of the population lives there • Population Density is shrinking • Why? • Oldest population • Lowest birthrate

  3. Births, Deaths and Migration • Total Fertility Rate in Italy = 1 • To stop shrinking needs to raise to replacement rate • Longer Life expectancies • Changing trend in migration: now more migrants to Europe, but still not enough

  4. Dependency Ratio • Compares the number of people too young (under 16) or too old (over 64) to work with those in the working- age population • High dependency ratio = more people to support • Low dependency ratio = less people to support • Where is Europe?

  5. Population Change in Europe • From slow to fast to no growth • Remember the Demographic Transition Model?

  6. Dilemma One: A Shrinking Population • Between 2005 and 2050, Italy is expected to shrink from 58 million to about 50 million • Causes: • Women wanting to pursue education and careers • Women are waiting to have children • Family planning • High cost of living • Child care

  7. Effects: • Declining enrollment in schools results in unemployment and loss of business • Labor shortages, relocating businesses • Smaller militaries

  8. Responses: • “birth bonuses” and benefits such as reduced rent and lower taxes • Lowering the cost of children • Providing quality childcare • Paid leave for parents • Flexible work hours

  9. Dilemma Two: An Aging Population • “Old Continent” • By 2050 average age in Spain will be 50, making it the oldest in the world • Causes: • Rise in life expectancy • Drop in the birthrate • Baby Boom

  10. Effects: • Government Pensions • Government Health care • Only works when a country has a low dependency ratio • Higher taxes

  11. Responses: • Cut the amount of money each work receives in pensions • Raise the retirement age • Bonuses to those who delay retirement • Prevention is better than treatment • Home care instead of nursing homes

  12. Dilemma Three: A Declining Workforce • Causes: • More people retire than enter the workforce • Will increase as baby boomers retire • Dependence Ratio in 2000 was 87 dependents to 100 workers, in 2030 it is estimated to be 100 workers for 121 dependents

  13. Effects: • More Jobs for young workers • Decline in highly skilled workers • Businesses may move • Less revenue from taxes

  14. Responses: • Keep older workers working • Encourage women to join and stay in the workforce • Move jobs to other parts of the world • Encourage immigration

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