South Korea Sees Seniors Outworking Youth
Aging Workforce Climbs as Job Opportunities for Young Adults Dwindle
A surprising trend is reshaping South Korea’s labor market: people in their 60s are increasingly employed, even surpassing those in their 20s, as economic headwinds and demographic shifts create a challenging landscape for young job seekers.
Record Employment Among Older Adults
The employment rate for individuals aged 60 to 69 reached 60.0 percent in April, a record high and a 1.1 percentage point increase year-over-year, according to national statistics. This marks the third time the rate has entered the 60-percent range, following figures from October and November of last year. Since data collection began in 2018, the rate has consistently risen from 51.2 percent.
Financial necessity is a primary driver of this trend. Many older adults are compelled to continue working due to inadequate retirement income and increasing longevity. A recent report indicated that 84.8 percent of individuals aged 65 and older work to cover living expenses or supplement their income. Beyond finances, some cite maintaining health (6.2 percent), utilizing skills (3.6 percent), combating boredom (3.1 percent), and fostering social connections (2.0 percent) as motivations.
“The rise in the employment rate among those in their 60s last year was centered on the health sector, which includes care service jobs, and the social welfare services industry, which is linked to the government’s direct job creation programs.”
—Song Jun-haeng, Head of Employment Statistics at Statistics Korea
Youth Employment Declines
Conversely, the employment rate for those in their 20s decreased by 0.9 percentage points in April, falling to 60.3 percent. This marks the eighth consecutive month of year-on-year declines for this age group, narrowing the gap with those in their 60s to just 0.3 percentage points. The shrinking population due to low birthrates, coupled with slower economic growth and reduced job creation, are key factors.
Companies are increasingly favoring experienced hires to minimize training costs, and young people are taking longer to secure employment after graduation. As of last May, the average job search period for those aged 15 to 29 reached a record 11.5 months. According to a recent report by the OECD, South Korea’s youth unemployment rate (12.3% in April 2024) is higher than the OECD average of 7.7% (OECD Data).
Future Concerns and Policy Debates
Kim Yu-seon, chair of the Korea Labor and Society Institute, suggests the employment rate for those in their 60s could soon surpass that of those in their 20s. Employment rates are also rising for even older demographics, with those aged 70 and over reaching 33.0 percent in April, and those 75 and over at 27.5 percent—both all-time highs.
Experts caution that proposed policies, such as extending the retirement age to 65 and implementing a four-and-a-half-day workweek, could negatively impact youth employment by increasing labor costs and discouraging new hiring. Yoon Dong-yeol, a business professor at Konkuk University, warns these measures could further pressure employment opportunities for younger generations.
Investment in industries driven by innovation, such as artificial intelligence, and policies promoting labor flexibility are crucial to mitigate these risks and create high-quality jobs for all age groups, according to Oh Gye-taik, a senior researcher at the Korea Labor Institute.
