CRI听力:Working-age Population Decline Challenges China's Growth

Latest figures show, the number of people in their working-age decreased by over 3 million in 2012, accounting for some 69 percent of China's total population.

Ma Jiantang, director of State Statistical Bureau, warns this is a serious issue.

"It is the first time the country has recorded an absolute drop in the working-age population over a considerable period of time. We need to pay serious attention to this. "

Dr. Xiang Songzuo, a Chief Economist with Agricultural Bank of China, says the drop also reflects heavily on the available labour force.

"Because of the rising production costs, our export industries are becoming less competitive. Further, the decline in working-age people also manifests itself on labor forces migrate from rural areas to cities and industrial centers, this leads to the rise of produce prices. And lastly, as our society is aging, it's going to be a bigger burden on the government to provide social security programs."

The working-age population, which covers ages between 15 and 59, is expected to decrease steadily and gradually over a long period, or at least before 2030.
Dr. Xiang Songzuo says even though the ageing population count is lower than some of the most aged countries, something needs to be done about the situation nonetheless.

"First, companies should restructure itself to increase competitiveness. Second, certain adjustments are needed for China's family planning policy. If we let the current one-child policy to be in place for another 20 years, it will take its toll on the momentum of the economy. Thirdly, our government should start the consideration to extend the retirement age as the population lives longer."

It's also believed the current European debt crisis and economic problems facing the US as well as Japan could also be connected to the ageing population, with 60 percent of government revenue allocated to social welfare in the countries.

Other economists suggest the fading of China's demographic dividend will require the government to boost the quality of human resources rather than pin hopes on urbanization for future growth.

For CRI, I'm Shen Chengcheng.