I don’t think that a day goes by without me hearing, or seeing, the word Millennials. Sometimes it feels like it is everywhere. Whilst the level of exposure seems to be reaching a crescendo I fist started writing about the generation in 2010 and have written a number of articles since:
The term Millennials refers to a generation which is, itself, loosely defined by demography. Some terms transcend their first meaning and that is what has recently happened to Millennials. It only really applies to the population in western countries and to people with a birth year in the mid-1990s through to the early 2000s, but seems to have become a term for anyone of the younger generations globally.
The Millennial generation is most regularly contrasted with the Baby Boomers who were born in the period after the Second World War through to 1964. The Baby Boomer generation was a huge cohort following the low birth rate during the wartime period of the early to mid-1900’s. This resulted in much younger average ages in the western countries and a huge explosion in the workforce which then facilitated significant economic growth. Those Baby Boomers are now moving into retirement and starting to become dependent on the generations younger than them, generations with much smaller cohorts.
The title of this post isn’t mine, it’s the name of a recent programme broadcast on BBC Radio 4 which looks at the shifts in population such as that of the Baby Boomer generation, but also the impact of the One Child policy in China and the slow down of population growth across Africa. The programme gives a really great view of the impact of these population shifts within and between the generations, with a particular UK perspective. If you are a member of the Baby Boomer generation, Generation-X or the Millennial generation you should listen to this programme.
How is population change transforming our world? Think of a python swallowing a pig: a big bulge makes its way slowly down the snake from the head end to the other end. That’s a bit like what’s happened to the UK demographically. The baby boom generation – which has changed Britain politically, culturally and economically – is now retiring. That means a large bulge of pensioners with big implications for the generations that come behind them.
Personally I sit in Generation-X, between the Baby Boomers and the Millennials. As a I look to my parents generation I see the promises that were made to them regarding their retirement and understand their desire to see those promises delivered. Likewise I look at my children and see the financial and social burdens that those promises are resulting in. It’s a huge demographic challenge that has been masked by a significant volume of immigration, in the UK at least. But that immigration has, itself, created other cultural challenges which the Baby Boomers have found particularly difficult to handle. Recent elections in the UK and the US have demonstrated these challenges.
One of the factors that has been on a bit of a roller-coaster ride in the last 50 years has been the UK dependency ratio, this is the ratio between those working and those being supported by those working. This seems to be a pretty good indicator of the burden I described above:
The higher the ratio the higher the burden on those working, the lower the ratio, the lower the burden. The last few years have seen a significant shift upwards.
This is the year of the 70th birthday, the year when more people in the UK celebrate their 70th birthday than ever before. It won’t be long before we are celebrating their 80th birthday, I wonder what our dependency ratio will be when that happens? I wonder how long it will be before the percentage of the population aged over 65 will pass 20%?
Numbers give us insight, how we respond to those insights is what defines the future. My concern is that we are currently making decisions that will impact our future, but without the insights.
This isn’t just a UK challenge though, at a global level it looks like the dependency ratio has reached the low point and is expected to start rising driven by a growth in China:
Data from the World Bank, this site is a great place to get insights.