Senior employment in Korea hits record high in Sept.

A citizen is getting counseling at the Employment Center for Middle-aged and Seniors in Seoul on the 22nd. (Yonhap)

South Korea saw a record number of senior employment in September while economic participation among young people dwindled, data showed on Tuesday.

According to data from Statistics Korea, the number of employed people aged 60 and older hit a record high of 6.75 million in September, up 272,000 from a year earlier.

Working senior citizens were also more willing to take on non-regular jobs.

According to separate data from Statistics Korea, those aged 60 and over accounted for 33.2 percent of all non-regular workers in August, ranking overwhelmingly first.

On the other hand, the number of Koreans aged between 15 and 29 who responded that they were “just resting” increased by 69,000 year-on-year to 442,000 in the survey conducted in September.

Over the past five years, the number of employed people aged 60 and older increased by 43 percent while the number of employed people in their 20s has decreased by 4.7 percent.

This reversal in employment trends raises concerns about generational conflicts and potential gaps in economic activity for certain future generations.

Experts warn that extending the retirement age to 60 in a situation where more young people lack the will or experience to work could further reduce youth employment.

“The mandatory retirement age of 60, which has been in effect since 2016, has led to a 6 percent decrease in full-time jobs for young people aged 23-27,” said Kim Dae-il, a professor of economics at Seoul National University, in a paper published last year.

There are also warnings that if retirement extension is mandated by law, companies unable to bear the increased labor costs may resort to large-scale layoffs.

There is also skepticism that extending the retirement age could further drive down potential economic growth.

“To boost the potential growth rate, it is necessary to expand the workforce with high productivity,” said Seok Byoung-hoon, a professor of economics at Ewha Womans University.

The professor questioned whether the retirement age extenders who receive high salaries can deliver productivity commensurate with their wages.

The Economic, Social, and Labor Council, a presidential social dialogue body, in the meantime, is scheduled to hold a closed-door meeting on Thursday to discuss the extension of the retirement age and the restructuring of the wage system.

“If the retirement age is extended while maintaining the seniority-based wage system, it could accelerate the decline of youth jobs,” said an official from the council.