Korea’s economically active 40s population at 21-year low

[Photo by Yonhap]

South Korea’s rapidly declining birthrate and aging population have pushed the economically active population in their 40s, a key pillar of the economy, to its lowest level in 21 years.

An analysis of Statistics Korea data by the Maeil Business Newspaper released on Thursday showed that the economically active population in their 40s was 6,347,000 in the second quarter of 2024. This was the lowest figure since 2003’s 6,186,000 and at this rate, the economically active population in their 40s is expected to fall to 6,230,000 this year. The share of the 40s in the total labor force is 21.4 percent, which is also the lowest figure since statistics were first compiled in 2000.

Meanwhile, the pace of aging has accelerated. The Ministry of the Interior and Safety announced on the same day that the number of people aged 65 and over topped 10 million for the first time to total 10,000,062, or 19.5 percent of the total registered population. The country is now on the verge of becoming a super-aged society, where more than 20 percent of the population is elderly.

The Organization for Economic Cooperation and Development (OECD) also warned of an impending demographic shock for the country. In its Economic Survey of Korea 2024 released on Thursday, the OECD assessed that “the combination of a shrinking and ageing population poses a formidable challenge to sustaining social insurance systems and maintaining living standards.”

To respond to the population decline, the OECD recommended in the report that Korea expand parental leave coverage to the entire workforce, relax strict visa requirements for skilled migrants, and consider phasing out company-specific mandatory retirement ages.