The future of workforce supply - 250,000 shortfall by 2048

22 Figure 23: The architecture and building field of study tends to see new entrants in the 15-39 age groups, from young people training to enter the workforce and migrants, and exits of people aged 40+, due to higher qualifications in another field of study, emigration from New Zealand, or death ....................................................................................................... [...] This was made possible to by two things: 6 Share of 15-64 year olds THE FUTUR E OF WOR KFOR CE SUPPL Y 2 5 0 ,0 0 0 SH O R TFALL B Y 2 0 4 8 • the working-age population grew by 36% (that is there were more working age people), and • more of the working age population was working (69% of the working age population vs 63% in 2002). [...] OLG models capture the impacts of both changes in fertility and longevity and allow the behaviour of each cohort or year-group to respond to the incentives the fall in fertility and longevity generate. [...] The key drivers of the behaviour we are interested in are determined by two critical relationships, the consumption decision, and the leisure decision households face.8 The modelled consumption decision is, Consumption decisions through time is traded off between the present and future. [...] The leisure decision is, The leisure decision is driven by the ratio between how much agent’s dislike working relative to the wages they receive scaled by their level of human capital (es) at each age.9 A representative firm then employs labour and capital to maximise profit typical in economic models.10 Given the population the model solves for the optimal decision and interaction between the pop.