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Dependency ratio takes sharp upswing after 10 years of decline

• The dependency ratio is a measure showing the number of dependents, aged zero to 14 and over the age of 65, to the total population, aged 15 to 64.   A high ratio means those of working age, and the overall economy, face a greater burden in supporting the aging population[1].    Metro Vancouver, as of the 2016 census, has a dependency ratio of 0.44, meaning that for every 1 worker there are 0.44 people who are dependent on them.

• This upswing can in part be attributed to the first wave of Baby Boomers now reaching retirement age.   This will continue in the years to come, pushing the dependency ratio up and causing a greater strain on the local economy.

• The government will need to act on municipal, provincial and federal levels to address this problem.  One potential solution is to increase immigration levels, particularly those of the young skilled workers.

Source: JLL Research, Stats Canada, Investopedia

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