Our Local Enterprise Partnership trumpets “growth, growth, we must have growth to prosper” and EDDC chose the highest growth figures to ensure its Local Plan got LOTS of housing. But they both seem to have forgotten something that their bible, the Daily Telegraph, now points out:
“Britain’s productivity crisis risks getting worse because the population is ageing steadily, leaving relatively fewer younger, more dynamic workers who typically innovate more.
Unless drastic action is taken to boost skills and creativity, or to increase the number of young workers, then growth will struggle to pick up, according to new economic research published in the journal of the National Institute of Economic and Social Research.
“The share of young workers impacts the innovation process positively and, as a result, a change in the demographic profile that skews the distribution of the population to the right [older], leads to a decline in innovation activity,” said the paper, written by Yunus Aksoy, Henrique Basso and Ron Smith. …
To avert a sustained slowdown they recommend that governments should look at ways to make the dwindling proportion of young people more productive.
“Unless there are drastic changes most OECD countries will need to devise new policies to foster medium-run economic growth in an environment with ageing population, perhaps by increasing investment in human capital,” the researchers believe.
Alternative options are also available, but some may be less politically palatable – for instance, encouraging greater flows of migrants of working age into the country.
“Demographics are not destiny and our conclusions assume that there will not be major changes in rates of immigration, labour force participation, fertility or longevity,” the economists said.”