Baltic Sea Region Territorial Monitoring System

Economic dependency ratio

Indicator definition

The economic dependency rate measures the ratio of the non-employed people to people employed.

Indicator importance

Since in public pension systems working class is responsible for financing the pension systems, imbalances in the relation between workers and retired persons may lead to additional burdens to the workers when additional levies are raised to the pension systems.

Findings

Dependency rate as good as below 1.0 is rather exceptional in BSR, in Jylland, but also in some capital/highly urbanised regions – Länsi-Uusimaa, Murmansk oblast, St Petersburg, Põhja-Eesti, Kaliningrad oblast, Hamburg, Bremen, and in Jylland. Levels between 1.0 -2.0 prevail, in most parts of the Nordic countries, Russia, Belarus and the Baltic States. The worst dependency levels with a dependency rate of more than 2.0 occur in rural periphery of Poland, and in some rural regions of BSR Germany.

Switching to the overall European view shows that besides Poland, Hungary, Croatia and Macedonia are those countries with worst dependency levels. On the other end of the spectrum, Ireland, the Eastern parts of Austria, Luxembourg, North of Scotland, and some regions in Western Germany experience the best dependency rates. The largest parts of France, Spain, Czech Republic and the UK, but also Greece, yield on average de-pendency rates.