Demographic change and population ageing: implications for labour supply and economic growth in a city State - South Australia

Abstract

South Australia is a city-State with the oldest demographic age structure of all the States and Territories in Australia. Its population is ageing at a faster rate than the nation as a whole. The older age structure and rapid ageing process implies a more substantial policy challenge for Adelaide and South Australia. The paper explores the effects of demographic change and population ageing on labour force participation rates and economic growth for South Australia and the nation as a whole. Through detailed examination of the evolution of the age structure, this paper aims to identify the nature and direction of the changes of labour supply that are likely to flow from population ageing. Secondly, the implications of demographic change and associated changes in labour supply for economic growth are also explored.