Government and business often classify people in this way to help them understand and serve a particular group of the population in a certain way. It also helps them to understand changes in the market and economy. Consumer studies are one common form of statistics that use demographics to interpret information.
Breaking people into these groups, or demographics allows businesses to see how well their product or service performs with any given group of consumers. This in turn affects every aspect of their business, including their advertising and marketing strategies, how they make their product or service available to their clients and more. Demographics allow businesses to measure, and stay ahead of their target audience.
One group that has received a great deal of media attention is the “baby boomers”. One of the more prevalent demographics those born between 1946 and 1964, are now reaching their 60s and Canadian business and government alike are studying them. Due to them being such a large group, numbering almost 10 million in Canada alone, the impact they have on business is substantial. Many businesses and even entire industries have found themselves changing their focus to accommodate the wishes of this influential group. For example, the health care industry has seen a dramatic rise in the number of hip and other joint replacements in recent years as the baby boomers have aged and begun experiencing joint problems. Unwilling to wait complacently or suffer in silence, the baby boomers have forced the health care industry to keep up, demanding reduced wait times and wider availability of this procedure.
The baby boomers have affected Canadian business and the economy in innumerable ways and will continue to do so for decades to come as one of the most influential demographics. When they entered the workforce, the massive increase in taxes collected from them allowed Canada to implement many social services such as health care and pension funds. As they age and retire, they will pay less in taxes and cost more for health care, but conversely will cost less in education and childcare benefits.
The effect of the baby boomers on the Canadian economy is just one example of how certain demographics can influence the entire economy. The study of demographics is essential if we are to stay ahead of the trends influenced by the sex, age, income level, education level, etc., of our population.