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Natural increase refers to the growth of a population occurring when the birth rate exceeds the death rate. This concept is significant in demographics as it signifies a population's ability to grow independently of migration trends, meaning that the number of births is greater than the number of deaths, leading to an overall increase in the population size.

This growth is measured over a specific timeframe, typically a year, and is a critical indicator of population dynamics. High birth rates generally arise from factors such as improved healthcare, increased fertility rates, and cultural norms favoring larger families. Conversely, a declining death rate may result from advancements in medicine, better living standards, or improved nutrition, which enhance life expectancy.

Other options do not accurately describe this specific population growth phenomenon. While population density deals with the concentration of individuals within a specific area, and migration trends refer to movements into or out of a population, they do not capture the essence of natural population growth driven by birth and death rates. Employment growth relates to increases in job availability and is not directly connected to the fundamental aspects of population change in terms of birth and death statistics.