Demographic Influences (Cambridge (CIE) A Level Business): Revision Note

Local demographic change

• Demographics refers to the number of people and the mix of ages, genders, backgrounds and locations in a population

• Local populations grow, shrink or change their composition when push factors drive people away or pull factors attract them

Examples of push and pull factors

• Jobs and income opportunities

  • New factories, technology hubs or tourist resorts attract workers

  • Factory closures or farm decline push them out

• Housing supply and cost

  • Towns offering affordable, good-quality homes for families or retirees can grow quickly

  • High prices or poor housing can cause population decline

• Transport links and digital connectivity

  • A new motorway junction, rail station or high-speed broadband makes commuting or remote work easier, encouraging inward migration

• Education and training

  • Universities, colleges or specialist schools attract students and staff

  • Parents may move to a different area to access better state schools

• Quality of life

  • Clean air, green space, low crime, cultural venues and leisure facilities act as strong pull factors

  • Environmental hazards or congestion do the opposite

• Government and planning policy

  • Enterprise zones, tax incentives and urban regeneration grants can revive an area, whereas planning restrictions can limit growth

• Birth and death rates

  • Districts with many young families may see natural increase, while areas with older populations may shrink over time

National demographic change

• The population structure of a country can change for a variety of reasons

  • Birth rate

    • Influenced by living costs, childcare availability, women’s education and career choices, access to family planning services and cultural views on family size

  • Death rate

    • Better healthcare, sanitation and nutrition lower mortality

    • Epidemics, conflict or poor medical access raise it

  • Economic booms and slumps

    • Growth attracts workers and encourages larger families; recessions can delay parenthood and trigger emigration

  • Government policies

    • Tax incentives for larger families, limits on family size, visa rules, pension ages and healthcare funding all shape population trends

International demographic change

• Global population growth is decelerating

  • The United Nations projects a rise from about 8 billion today to roughly 9.5–10 billion by 2055, after which it is likely to level off

• A sharply ageing world

  • Almost every region will see a higher share of people over 65 as fertility falls and life expectancy lengthens

  • This will shrink the working-age population in many economies

• Regional shift towards Africa and South Asia

  • More than half of all new births to 2055 are expected in just eight countries, led by Nigeria, India and Pakistan

  • Populations in Europe, Japan and China either stagnate or decline, shifting the centre of labour supply and consumer demand southwards and eastwards

Migration

• Migration is the movement of people from one place to another with the intention of living or working there for at least a significant period of time

• It can be internal (within the same country) or international (crossing borders) and may be temporary or permanent

Why Canada encourages international migration

The impact of demographic change on business decisions

• As age profiles, family sizes and migration patterns shift, firms must rethink what they sell, where they open, and whom they hire