Workers Over 60 Surpass Youth for First Time in 'Generational Reversal'

The number of regular workers aged 60 and over in South Korea has surpassed that of young workers for the first time. As of May this year, there were 2.2 million regular workers aged 60 and over, which is 76,000 more than the 2.124 million regular workers aged 15-29. This is the first time that the number of regular workers aged 60 and over has exceeded that of young workers, based on May figures since comparable statistics have been available from 2014.

The number of young regular workers (aged 15-29) has decreased for four consecutive years since recording 2.558 million in May 2022. Over the past four years up to May, the number of young regular workers fell by 17.0%, nearly double the 9.0% decrease in the youth population during the same period. In contrast, regular workers aged 60 and over have shown an upward trend. While the population aged 60 and over increased by 15.1% in the past four years, the number of regular workers in this age group grew by 42.8%, 2.8 times the population growth rate.

The proportion of regular workers aged 60 and over among the total employed population rose from 14.5% in 2014 to 30.5% this year, breaking the 30% mark for the first time. This trend is a result of the combined effects of slowing youth employment and an expanding influx of older workers into the labor market. Factors such as companies' increased focus on hiring experienced workers, a prolonged downturn in manufacturing, and a reduction in entry-level jobs in the IT sector due to the expansion of AI have worsened employment conditions for young people. Last month, youth regular employment in the IT sector decreased by 58,000 compared to the same month last year, and by 33,000 in the manufacturing sector.

For the older demographic, increased life expectancy and the necessity of securing retirement income have led to a greater demand for continued economic activity, resulting in more individuals staying in or re-entering the labor market. Demand for older regular workers has expanded, particularly in the health and social welfare services sector, which saw an increase of 55,000 individuals last month.

The government is preparing youth employment measures, continuing discussions on existing initiatives and exploring new ones. The plan is to hold weekly meetings to monitor employment status for the time being.