The total dependency load ratio is based on a combination of the youth population ratio with the senior population ratio. Then it is averaged to every 100 workers. The youth demographic dependency is based on the ratio of the youth population to the working population. The senior demographic dependency ratio is based on the senior population to the working-age population. The dependency load is based on age and not employment status. It does not take into account young people and seniors who are working. The ratio also does not account for people who are of a working age but are not in the labor force or who are unemployed.
The dependency load is used to reflect the population age structure. The demographics of the dependency load show that seniors who are 65 years or older, and children and youths younger than 20 years are most likely to be socially as well as economically dependent on working-age people. When demographic dependency ratios change, it indicates a change in the age composition of the population. The working-age population is who in theory provides the social and economic support.Learn more about Economics