90% of Korean cities, counties to see fall in economically active population
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The economically active population includes individuals aged 15 and older who are willing and able to work.
According to the paper, which will be presented at the Korean Association of Public Policy on Friday, the number of economically active people is projected to decrease in 209 out of 229 cities and counties across the country in 2042, compared to 2022.
This amounts to about 90 percent of the country’s local governments.
This anticipated decline raises concerns about shocks to regional labor markets.
In particular, Hwaseong in Gyeonggi Province, home to Samsung Electronics Co’s Hwaseong Campus and Dongtan New Town, which has seen continuous population growth from 1995 to 2023 thanks to quality jobs and excellent living conditions, is expected to see a 25 percent reduction in its economically active population by 2042 compared to 2022.
Similarly, Icheon in Gyeonggi Province, home to SK hynix Inc., is expected to witness its economically active population decrease by 15 to 25 percent by 2042 compared to 2022.
“Even if jobs lead to population growth in certain areas, the number of economically active people is bound to decline if an aging population progresses with older individuals not working,” Lee explained.
“Workforce policies tailored to specific regions and industries will be essential in responding to population changes,” he added.
The government has been introducing measures to address the causes of the declining economically active population, including low birth rates and the concentration of people in the Seoul metropolitan area.
In a related development, the Presidential Committee on Aging Society and Population Policy announced during a meeting on Wednesday that the government will expand the leave period for women employees who experience miscarriage or stillbirth in early pregnancy (within 11 weeks) from five to 10 days to ensure an adequate recovery time.
A new paid leave of three days for partners in cases of miscarriage or stillbirth will also be introduced.
For female employees commuting between Seoul and the Gyeonggi region, the government plans to create reserved seating for pregnant women on regional buses and to install parking spaces designated for families with young children and pregnant women.
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