Answer:
The consequences of a shrinking workforce population include:
Political:
Decision-making domination by the older adults
Government by the aged (gerontocracy), who may be more concerned with their today than with the future.
More conservative political thoughts and practices
Social:
Lack of adequate welfare system
Negative impact on education and innovation
Decline in socio-cultural activities
Stressed family life
Reduced labor market
Pressure on the healthcare facilities and social insurance
Economic:
Reduced workforce
Decline in labor productivity
Higher labor costs
Contraction of businesses
Lack of international competitiveness
Deteriorating fiscal balance
Explanation:
A shrinking workforce population is filled by more aged adults than children and youth. This situation increases the dependency ratio. It constrains the healthcare system and increases the need for governments to pay out more in benefits to the less-productive class without commensurate support from the workforce population.
