What does the term 'dependency ratio' refer to?

The term 'dependency ratio' refers to the number of individuals who are not in the labor force (typically the young and the elderly) compared to those who are within the working-age population. This ratio is significant because it provides insight into the economic burden placed on the working population by dependents.

A higher dependency ratio indicates that there are relatively more individuals relying on the support of the working population, which can have implications for economic productivity, social services, and health care systems. Understanding this ratio helps policymakers and planners anticipate future needs for workforce development, health care, and social services, considering aging populations and demographic shifts.

The other choices do not accurately capture the meaning of dependency ratio. For instance, while the number of children in education might contribute to societal understanding of youth engagement, it does not encompass the broader definition of dependency. Similarly, the percentage of unemployed individuals and the ratio of patients to healthcare providers focus on specific aspects of economics and health systems, but neither relates to the way dependencies are measured in relation to working-age individuals.