Declining birth rates in developed countries create economic risks for future generations, according to a new report from the Organisation for Economic Cooperation and Development.

Deaths could outpace births in the coming decade, according to the intergovernmental organization of 38 countries that collaborate on policies to promote sustainable economic growth.

What You Need To Know

  • Declining birth rates create an economic risk for future generations, according to a new report from the Organisation for Economic Cooperation and Development

  • Deaths could outpace births in the coming decade

  • Women in OECD member countries gave birth to 1.5 children in 2022 — a drop of more than half from 1960 when the fertility rate was 3.3 children per woman

  • The replacement level to keep populations constant is 2.1 children per woman

Women in OECD member countries gave birth to 1.5 children in 2022 — a drop of more than 50% since 1960, when the fertility rate was 3.3 children per woman. The replacement level to keep populations constant is 2.1 children per woman. The fertility rate is lowest in Korea at 0.7 children.

In April, the Centers for Disease Control reported the U.S. fertility rate decreased 3% last year to a historic low of 1.62.

The percentage of women without a child has doubled in Estonia, Italy, Japan, Lithuania, Poland, Portugal and Spain over the course of two generations, the report found.

“While OECD countries are using a range of policy options to support families, the economic cost and long-term financial uncertainty of having children continue to significantly influence people’s decision to become parents,” OECD Employment, Labour and social Affairs Director Stefano Scarpetta said in a statement.

To encourage families to have children requires “comprehensive and reliable support,” he said, including affordable housing and policies that make it easier to balance work and family responsibilities.

Housing costs have increased dramatically over the past decade, making it more difficult for young people to form long-term relationships and create families. The report found that more young people in the 20s and 30s are living with their parents for financial reasons. 

The OECD said the decline in births should inspire countries to create policies that address a “low-fertility future,” including “a proactive approach to migration and integration and facilitating access to employment for under-repressented groups.”

The number of people aged 65 and older compared to people of working age is expected to double by 2060. A smaller working population could lead to aging societies that put more pressure on governments to pay more for pension and health services.