Employment of S. Korean people in 40s drops amid aging population

South Korea’s demographic pyramid undergoes a significant change as the cohort born between 1968 and 1974, constituting a substantial chunk, transitions into their 50s, showcasing the most substantial population decrease in the 40s age bracket. Consequently, the number of employed individuals in their 40s has hit the lowest point in two decades as of November.

According to data released by Statistics Korea on Tuesday, last month’s population in the country’s 40s age group stood at 7,909,000, down 139,000 versus a year ago. This decline represents the most considerable drop in 4 years and 3 months since a decrease of 141,000 in August 2019. In the first 11 months of 2023, the number of people in their 40s fell by 120,000 compared to the same period a year ago. This was the second-largest decline across all age groups after a fall of 178,000 in the youth population aged 15-29. The population of those in their 30s fell by 76,000.

In contrast, the 50s age group increased by 9,000, while those aged 60 and above surged by 509,000, intensifying the pace of aging in South Korea.

The decline in the 40s population raises concerns as it coincides with a reduction in the most actively employed segment of the economy.

As of November 2023, the number of employed individuals in their 40s was 6,254,000, down 62,000 from a year earlier, the lowest level in 20 years for the same month since 6,172,000 in 2003.

The number of employed individuals in their 40s in November reached 6,947,000 in 2014 and 6,935,000 in 2015 before shrinking to the 6.2 million range in 2023.

In the first 11 months of 2023, the number of employed people in their 40s fell by 57,000 year-on-year, the second-largest decline after a decline of 100,000 in the youth population.

People in their 40s also lost the top spot in terms of job size to people in their 50s in 2022 after holding it for six years.

Out of the 26.45 million jobs created in 2022, the jobs occupied by those in their 50s were the most at 6.35 million, accounting for 24.0 percent. This marked the first time they surpassed the 40s since data compilation began in 2016. Those in their 40s held 6.31 million jobs, or 23.8 percent.

In terms of employment rates, which are less affected by demographic shifts, the employment rate for those in their 40s was 79.1 percent in November, up 0.6 percentage points year-on-year. This marks the 32nd consecutive month of growth since April 2021.

The demographic change has been predicted as the second baby boom generation born between 1968 and 1974 approaches their 50s.

The ‘National Fiscal Management Plan 2019-2023: Jobs Report,’ released in November 2019, stated that “the number of employed people will shrink significantly by the mid-2020s when most of the second baby boomers enter their 50s.”