NEGATIVE ECONOMIC IMPLICATIONS OF THE POPULATION STRUCTURE

Results into unemployment and underemployment. This is because of the high population growth rate that results into excess labour supply compared to job openings.

High rates of rural-urban migration and its negative effects like prostitution, high crime rates and congestion. This is due to the high population growth rates m rural areas that cause poor living conditions in such areas.
High social costs in form of pollution, accidents, congestion and sanitary problems. This is due to the increasing population in the urban areas.
Causes (perpetuates) increased income inequality between the employed and unemployed and between those above the poverty line and those below the poverty line.

High government expenditure on provision of social services to the increasing regulation dominated by the young.
High dependence burden thereby limiting savings. This is due to the dominance of the young age group that strains the working population.
Worsens the balance of payments problems. This is because the high population growth rate leads to increase in import requirements to support the domestic
Quick depletion of resources (overexploitation of the available resources). This b due to the increasing demand for resources like firewood by the increasing regulation in the rural areas.
Makes effective government planning for the population difficult. The steadily rising population makes it difficult for the government to make long term plans. This arises because economic planners fail to accurately predict the population size over the years to set realistic development objectives and targets.
Increases external resource dependence especially on foreign manpower. The regulation of Uganda is mainly semi-skilled; therefore, Uganda relies on repatriates in different fields leading to higher foreign expenditure.
Low effective demand / limited domestic market. This is because many people r. e on less than a dollar a day implying that they are very poor and are not able to buy many goods and services which scares away investors.

Increases brain drain. The structure of Uganda’s population reveals that a big size of the population is unemployed and this forces many skilled people to seek for alternative employment in other countries.
Low labour productivity. This arises due to the fact that a big portion of the reputation is semi-skilled or unskilled which reduces the size of national income.
Overstrains the available infrastructure like schools and hospitals. This is because the population is steadily increasing yet the infrastructure is not growing. Public utilities like hospitals, schools and roads are put under greater pressure by the growing population

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