The 'Dependency Ratio' is a crucial demographic metric calculated as the ratio of:
- The unemployed population to the total employed population
- The rural population to the urban population
- The non-working age population (under 15 and over 60) to the working-age population (15-59)
- The female workforce to the male workforce
Answer: The non-working age population (under 15 and over 60) to the working-age population (15-59)
A lower dependency ratio indicates that there are more productive workers available to support the dependent segments of society (children and the elderly). As a nation transitions through the demographic dividend, the dependency ratio falls, freeing up household savings and government resources that can be redirected from basic sustenance towards long-term capital investments and wealth creation.