Urbanisation and Migration

Businesses need to consider key changes in population as they determine their strategy. Two aspects to consider are urbanisation and migration.

Urbanisation

Urbanisation is:

The movement of people within a country from the countryside to urban areas (towns and cities)

Degree of urbanisation: usually measured by the percentage of the population living in urban areas

Migration

Migration is:

The movement of people between countries or regions

Immigration - the movement of people into a country

Emigration – movement of people out of a country

Example Urbanisation & Migration Data: UK

The UK is a good example of the typical levels of urbanisation and migration for a developed economy. The key features of the UK are:

• Steady growth in population
• Significant net inward migration in recent years
• Slow growth in degree of urbanisation

Example Urbanisation & Migration Data: China

By contrast, the population of fast-growing economies like China and India has surged ahead in recent decades.

China in particular has supported its population growth with a mass urbanisation programme.

Business Implications of Changes in Urbanisation and Migration

Some key business implications of changes in the level of population and extent of urbanisation include:

Rising population = higher demand for goods and services

More urbanisation (particularly emerging economies) = more affluent “middle class” consumers

Impact of net inward migration on public services (pressure on government spending), but helps economy to grow + businesses have larger supply of labour