Interesting times – the challenges of China’s demographic deficit

Abstract

China’s recent economic growth and global expansion have been analysed and discussed from many different perspectives over the last decade. However, the positive aspects of its growth have concealed several crucial demographic and labour market characteristics which threaten to derail its future prosperity. Thus, whilst economic growth has stimulated labour demand, the future supply of skilled labour is seriously threatened by the confluence of four key factors – namely, a rapidly ageing workforce, declining fertility levels, the adverse impacts of the one-child policy, and a flawed education system. Consequently, this paper illustrates the implications of these challenges, analyses their antecedents and consequences, and provides a series of remedial recommendations for government, industry and future researchers.