The World Bank has published a report projecting that South Asia’s working age population, currently 1.17 billion, will peak and begin shrinking in less than a decade. It recommends creating more productive jobs and strengthening health care, long-term care and pensions to manage population aging that is occurring faster and at lower income levels than in comparable emerging market and developing economies. By 2049, 14% of the region’s population will be aged 65 or older. Employment and social protection gaps limit the region’s ability to benefit from its current demographic profile and prepare for aging. Only 60% of the working age population is employed, and 88% of employed workers work informally, with lower earnings and less job security. Just 17% of the working age population contributes to a pension scheme, while only 10% of older people receive pension benefits. The recommendations pair measures to improve employment opportunities with stronger support for older people. Priorities include expanding access to finance for micro, small and midsize enterprises, streamlining regulations and removing barriers to women’s employment. Improvements in health, education and skills would support a more productive workforce. Stronger health care, long-term care and pension systems would help meet the needs of an aging population, alongside greater savings and investment to raise productivity.
World Bank projects South Asia’s working age population will peak in less than a decade
A World Bank report projects that South Asia’s working age population of 1.17 billion will peak and start declining in less than a decade, with people aged 65 or older accounting for 14% of the population by 2049. Low employment, widespread informal work and limited pension coverage constrain the region’s ability to prepare. The report recommends more productive jobs, better access to business finance and stronger health, care and pension systems.