The Influence of Aging Population on Labor Cost -- An Analysis from The Perspective of Labor Demand

Globally, the phenomenon of population aging has become a significant trend. This article starts from the view of labor demand and sorts out the impact mechanism of aging population on labor costs. This article summarizes previous research from three aspects: labor productivity, consumption structure and technological advancement, and explores the impact of population aging. Research has found that aging will reduce business productivity due to the degradation of physical functions and the inability of older people to adapt to new technologies. Secondly, aging has also had a significant impact on social consumption structure, especially increasing the level of consumption in medical care. However, this trend has also resulted in a substantial increase in government medical expenditures, which may have a suppressive effect on the overall national income and consumption level of society in the future. Finally, populating aging has also hindered technological progress to a certain extent and slowed down the speed of technological innovation and development. This article provides a reference at the subdivision level for exploring how populating aging influence the cost of labor on the labor demand side.