How can increasing female labour force participation mitigate ageing population impact?

Question

Accepted Answer

Increasing female labour force participation can partially offset the reduced labour supply caused by an ageing population.

Boosting the rate at which women participate in the workforce can help alleviate the downward pressure on labour that arises as the population ages. In 2017, the female labour force participation rate was recorded at 54.5 per cent, indicating a significant pool of potential workers. By drawing more women into the workforce, the overall labour supply can be maintained or increased, thereby counteracting the shrinking workforce that typically accompanies an ageing demographic.
Policies to Accelerate Women's Workforce Entry

To effectively increase female labour force participation, a range of supportive policies should be intensified. These measures include the implementation of flexible working arrangements, which can help women balance work and family responsibilities. Furthermore, the provision of quality childcare facilities is crucial for enabling mothers to return to or remain in employment. Additionally, skills training and entrepreneurship programmes tailored for women can equip them with the necessary tools to enter or advance in the labour market.
The Economic Context of Population Ageing

Malaysia is projected to become an ageing nation, with the number of individuals aged 65 and above expected to rise significantly. This demographic shift presents challenges for economic growth, primarily due to a potential decline in the size of the working-age population. The Economic Outlook 2019 report highlights that this ageing trend can lead to a reduced labour supply, which, in turn, can exert downward pressure on economic output if not adequately addressed.
Broader Strategies for Labour Force Adaptation

Beyond increasing female participation, other strategies can help manage the impact of an ageing population on the labour market. These include offering gradual retirement and re-employment opportunities for older workers, which can ensure continued economic contributions through EPF contributions and tax revenue. Efforts to enhance productivity through technological innovation and the adoption of robotics are also vital. Creating an environment that supports lifelong learning and skills upgrading across all age groups is also recommended to keep the population productive.

Reading history

Hide →

This history is cleared when the page is closed.

How can increasing female labour force participation mitigate ageing population impact?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends