China Center Chart Dive: China's Long March toward a Diminishing Labor Supply

China is currently experiencing a pronounced demographic shift that will have a serious impact on MNCs in China. Over the past decade, it has transformed from a nation with an abundance of young people to one with an increasingly aged population. Its working-age population—those between the ages of 15 and 60—reached a turning point in 2012, and is now shrinking by several million people every year. This trend is driven both by a diminishing supply of new workforce entrants as well as an accelerated pensioner rate, as a growing number of Chinese workers reach retirement age. This long, continuous decline in the working-age population will accelerate significantly after 2020, and at its peak will shrink by over 10 million people each year. 

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