By Dipesh Ghimire
South Korea’s Employment Rises Amid Shifting Demographics and Aging Workforce Participation
South Korea is witnessing a steady rise in employment, a trend experts link to the country’s shifting demographic structure and expanding opportunities for older adults in the labor market. Analysts say the pattern reflects both economic stability and a growing tendency among senior citizens to remain active in the workforce.
According to official data, employment among individuals aged 15 and above increased by 0.8 percent year-on-year, reaching 29.046 million. Notably, people aged 60 and above accounted for the bulk of this growth, adding 333,000 new jobs. In contrast, employment declined among younger workers—falling by 177,000 in the 15–29 age bracket—and also slightly among individuals in their 40s.
Sector-wise, the strongest gains were recorded in health and social services, which added 281,000 jobs, followed by business management with 63,000 jobs, and sports and entertainment with 61,000. The construction and manufacturing sectors also saw notable increases of 131,000 jobs each, signaling recovery in traditional industries despite demographic pressures.
While the number of regular and irregular employees has grown, the report shows a decline in daily wage earners and single-person self-employed workers. This shift, economists note, suggests a gradual move toward more structured forms of employment as the workforce reorganizes around long-term economic needs.
The overall employment rate for people aged 15 and above inched up by 0.2 percentage points to 63.4 percent. By OECD standards, the employment rate for the 15–64 age group climbed to 70.2 percent, reflecting the resilience of South Korea’s labor market even amid demographic headwinds.
South Korea’s unemployment rate remained steady at 2.2 percent, though the total number of unemployed individuals rose slightly by 5,000, reaching 661,000. The economically inactive population decreased marginally, signaling a gradual re-entry of individuals into the labor force—particularly among older age groups.
Economists interpret these trends as an early preview of how aging societies will reshape global labor markets in the coming decades. South Korea, they say, is emerging as a case study in how rising elderly participation may offset the shrinking younger workforce, at least in the short term.
