A recent McKinsey report warns that future generations will face a demographic crisis due to declining birth rates and increasing life expectancy. The report states that younger people will inherit lower economic growth and shoulder the cost of caring for retirees, unless action is taken.
Experts such as Elon Musk and Jeremy Grantham have sounded the alarm on this issue, citing it as a major threat to humanity’s stability. They argue that population decline will lead to a youth shortage and an aging workforce, resulting in longer working hours, more years in the labor force, and increased productivity pressure.
To mitigate this problem, McKinsey suggests that workers would need to put in extra hours or work for longer periods. For example, a German worker would need to add 5.2 extra hours per week to maintain living standards at pre-1990s levels. This highlights the need for policymakers to address demographic changes and find solutions to ensure economic growth and stability.
The decline in birth rates is not unique to one country, with South Korea’s birth rate already at a record low of 0.7 children per woman. Japan’s population is also aging rapidly, with nearly 30% of citizens over 65. These trends pose significant challenges for future generations, who will need to adapt to an increasingly aging workforce and provide care for retirees.
Unless addressed, the consequences of declining birth rates and increasing life expectancy could be catastrophic, putting human civilization at risk.
Source: https://www.businessinsider.com/population-decline-birth-rates-demographics-workplace-hours-productivity-musk-grantham-2025-1