Demographic Aging and the Reconfiguration of Global Labor Markets: Toward a Theory of Workforce Scarcity
Keywords:
demographic aging, workforce scarcity, labor market reconfiguration, demographic economics, labor supply dynamics, global labor marketsAbstract
Population aging is reshaping the structure of global labor markets, yet existing research often examines its economic consequences through fragmented perspectives focused on productivity decline, fiscal pressure, or labor supply contraction. This article advances an integrative conceptual framework that explains how demographic aging triggers a structural reconfiguration of labor markets through the emergence of workforce scarcity. Drawing on demographic economics, labor market theory, and organizational adaptation literature, the study synthesizes prior research to develop a multi-level explanation of how shrinking working-age populations transform the dynamics of labor allocation, firm strategy, and institutional arrangements. The proposed framework conceptualizes workforce scarcity not merely as a demographic outcome but as a structural condition that reorganizes labor demand, skill formation, technological substitution, and cross-border labor mobility. By integrating insights across demographic and economic research streams, the article develops a theory of workforce scarcity that clarifies the mechanisms through which aging societies reshape labor market equilibrium. The framework contributes to the literature by offering a coherent theoretical foundation for understanding how demographic aging reorganizes labor market structures and firm behavior in advanced and emerging economies.
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