Population Demographic Characteristics - Age Dependency Ratio

Why Is This Important?

The dependency ratio is an indicator of the amount of burden that non-working individuals in society place on the working-aged population. A high ratio means there are more non-working individuals compared to working-aged individuals. Working-aged individuals tend to pay much more in taxes. Seniors aged 65 or older and children younger than age 15 are likely to be socially and/or economically dependent on working-age population, and they may put additional demands on New Mexico families and health services. A rising dependency ratio is a concern in areas like New Mexico that are facing an aging population, since it becomes difficult for pension and tax-supported services to provide for a significantly older, non-working population.

Definition

Ratio of the combined dependent population aged 0-14 and aged 65 and older to the working population aged 15-64, expressed as the number of dependents per 100 people of working age. Higher values indicate a greater level of age-related dependency in the population.

Data Sources

• Centers for Disease Control and Prevention, National Center for Health Statistics, Bridged Race Population Estimates
  (https://www.cdc.gov/nchs/nvss/bridged_race/data_documentation.htm)
• New Mexico Population Estimates: University of New Mexico, Geospatial and Population Studies (GPS) Program.
  (http://gps.unm.edu/)

How the Measure is Calculated