The rapid growth in the old age population is having a startling impact on productivity, health costs and workforce across the globe. What could be done to prevent the impending catastrophe?

In the developed countries, the dominant issue for the next generation will be the rapid growth in the old age population and the shrinking younger generation. Today, the world population is showing a considerable increase in the absolute and relative numbers of the older people. It is estimated that by 2020, the world's population will consist of more than 1,000 million people aged 60 years and above. This is going to have an upsetting impact on productivity, health costs, social security and the workforce. Paul Alapat, Visiting Professor of International Finance, IIM, Bangalore says, "The impact of these demographics would be on factor productivity, with overall labor productivity pushed down." He further states, "With the aging of the population, public pension and other social welfare schemes will be severely tested."

Population trends around the world aren't too pleasing. The developed countries in Europe, Asia and the US are already affected by the decline in the younger generation and now it's the turn of the developing countries. As per a research carried out by the National Institute for Working Life, Sweden, the population growth rate in Europe is very low (0.3%) due to migration and low fertility rates. The death rate of the people aged 70 and above has also declined because of improved medical technology and healthier life styles. This simply means a lot more elderly people above 60 years of age and fewer younger people. As per statisticians, the population of the young people (up to 19 years old) in Europe will decrease by almost 11% and those of working age between 20 and 59 will decrease by 6.5%. In the next 20 years or so, there is a need for the European companies to adapt their organizations, their working hours and their theories of management to the older workforce.

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