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Demographic change

Demographic change means the transformation of a population’s age pyramid. In Germany, the concept describes the population decline and the increased percentage of older people. With a decreased birth rate and a higher life expectancy, the general population in Germany would decrease without migration. Besides the birth and death rate, demographic change is influenced by emigration and immigration. Germany is one of the world’s countries with the oldest population. This influences the social security systems such as the pension system. With less younger people working and paying into the pension funds and more older people depending on these services, there is a discrepancy in the providers and receivers of social security. Furthermore, the decreased percentage of young people leads to shortage in the labour market.