The Philippines has more to offer other than its relatively low labor cost, high English proficiency, affinity to Western culture, large pool of workers, and business-friendly environment.
Apparently, its longer list of advantages also includes its young labor force and population, as confirmed in a study by Moody's Investors Service. In the survey, the Philippines ranked among 23 countries, out of 112 nations, that will not have to face the aging population problem, at least not in the near future. Its young population for the next couple of decades can boost the country's economy, with a larger supply of manpower for various industry sectors.
Advantages of having a young labor force and population
If at least 7 percent of its population is aged 65 and up, the country has an aging population, which may present some problems because of its limited work force. According to the study, the rapid pace of aging can adversely affect the economy for the next 20 years, as this may lead to slow economic growth in various regions. The Philippines, however, will be exempt from this until 2030. Based on the report, people aged 65 and up will make up just 4.1 percent of the Philippines' population by 2015. By 2020, they will compose 4.9 percent of the population and 5.6 percent by 2025. These numbers will rise to 6.3 percent by 2030.
The country's young population will definitely have a positive impact on the economy. Compared to nations with rapidly aging populations, the Philippines will have a more stable pool of workers and much larger labor force, which can help in the growth of various industries. This, in turn, will make the country a more ideal investment and business destination. This will cement its status as a global service center with its thriving service export sector and outsourcing industry, among other trades. In terms of policies, it can afford to make gradual changes and adjustments over a longer period, making it easier to adapt to these reforms.
Results of the survey
• Out of 112 surveyed countries, 68 nations will have an aging population starting next year.
• Japan, Germany, and Italy are ranked in the "super-aged" category, with their elderly representing over 20 percent of their total population.
• Greece and Finland will be in the "super-aged" category next year.
• Bulgaria, Croatia, Malta, France, Portugal, Sweden, Slovenia, and the Netherlands will be among the 13 nations that will have a "super-aged" population by 2020.
• In developing nations, the forecast ratio is 4 working adults for every person aged over 65, as opposed to 2 working adults for every person aged above 65 in developing countries.
• Brazil, Russia, Turkey, Argentina, China, and Thailand are among the emerging markets that are already "aging." The rate at which they "age" is relatively faster compared to other developed economies.