A report from the OECD organization indicates that the birth rate in industrialized countries is currently at an all-time low. This decline in birth rates poses a threat to public finances and sustainability. The average number of children per woman has more than halved from 3.3 children in 1960 to 1.5 in 2022, with most OECD countries falling below the ideal birth rate of 2.2 children per woman, with the exception of Israel.
The decrease in birth rates, combined with an aging population, poses a significant risk to public finances and could lead to the closure of schools in various parts of Europe, Japan, and South Korea. To address this issue, the OECD suggests that countries should support gender equality and a more equal division of labor, as well as provide financial support for families with children.
Despite efforts by some countries like Hungary to increase birth rates through family benefits and tax breaks, many countries are still struggling with low birth rates. The trend towards individual freedom and alternative lifestyle arrangements is shaping the population structure in what the OECD calls the “second demographic transition.” Childlessness is also on the rise in many countries, with the average age of first-time mothers increasing.
In conclusion, declining birth rates in industrialized countries are a cause for concern and pose a threat to economic growth and public finances. Countries must act now to address this issue by implementing policies that support family formation and child-rearing to ensure a sustainable population for the future.
