The higher the dependency ratio, the smaller the proportion of the active labor force relative to the inactive.
The dependency ratio is the number of dependents (people who are too young or too old to work) compared to the number of people who are of working age and potentially able to work. A high dependency ratio means that there are more dependents relative to the working-age population, which can create economic challenges for a country or region.
When the dependency ratio is high, it means there are fewer people of working age to support those who are too young or too old to work. This can lead to higher levels of unemployment and lower levels of economic output. In turn, this can reduce the overall economic prosperity of a country or region.
In summary, the higher the dependency ratio, the smaller the proportion of the active labor force relative to the inactive. This can create economic challenges and reduce overall economic prosperity.