Working-Age Population: Definition, Importance, and Example

What is the working-age population?

The working-age population is the count of people within a predetermined age range who are considered able and likely to work. Common ranges used by researchers and governments are 15–64 or 18–64, though specific boundaries vary by country and legal framework. This measure estimates the pool of potential workers in an economy but does not indicate who is actually employed.

Key points

• It measures potential workers by age, not employment status.
• Typical age ranges are late teens through retirement age (e.g., 15–64 or 18–64), but definitions vary.
• The working-age population differs from the working population (those who are actually employed) and from the labor force (those working or actively seeking work).
• Some individuals outside the age range work (e.g., early teenagers or older retirees), and some within it do not work due to disability, caregiving, education, or other reasons.

How it’s used

Governments, economists, and businesses use the working-age population to:
* Estimate labor supply and potential workforce size.
* Forecast needs for jobs, training, and public services.
* Assess economic growth potential and tax-base sustainability.
* Guide decisions on immigration, retirement policy, and workforce planning.

Demographic and economic impacts

Shifts in the working-age population affect economic prospects:
* Aging population — When the share of older residents grows and fewer young people enter the workforce, labor shortages can arise, increasing pressure on wages, public pensions, and healthcare systems.
* Youth bulge — A surge in young adults entering the working-age group can heighten competition for jobs and requires job creation and training.
* Imbalanced dependency ratios — Regions with many people outside working age (children and retirees) rely on a smaller working-age group to produce income and support public services, which can strain public finances.

Ideally, an economy benefits from a steady flow of people entering and exiting the working-age population and a balanced ratio between those of working age and dependents.

Real-world example

In one high-profile case, a proposed large factory committed to thousands of new jobs. Critics argued the local area lacked enough working-age residents to fill so many positions quickly, illustrating how a limited or declining working-age population can deter investment or lead companies to scale back expansion plans.

Working-age population vs. related measures

• Working-age population: People within the age range likely able to work.
• Working population (employed): People actually employed, regardless of age.
• Labor force participation rate: Percent of the working-age population who are employed or actively seeking work.

Frequently asked questions

Q: What age range counts as working age?
A: There is no universal range—commonly used ones are 15–64 and 18–64. Countries may set different ranges based on legal working age and retirement norms.

Q: Does the working-age population equal the labor force?
A: No. The working-age population includes everyone in the age range, while the labor force counts only those who are employed or actively looking for work.

Q: Why does an aging working-age population matter?
A: Fewer workers can create labor shortages, raise the cost of labor, and reduce the number of taxpayers supporting pensions and public services, increasing fiscal pressure.

Conclusion

The working-age population is a key demographic indicator used to assess an economy’s potential labor supply and long-term fiscal health. Understanding its size, composition, and trends helps policymakers and businesses plan for workforce needs, public services, and economic development.