Bank of Korea: "Employment slowdown persists among core labor population aged 30-50... Insufficient qualitative improvement"

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea has diagnosed that the novel coronavirus infection (COVID-19) may make employment recovery more difficult for the core working population aged 30 to 50.

According to the 'BOK Issue Note' released by the Bank of Korea on the 18th, the recent slowdown in employment among the core working population aged 30 to 50 has continued, leading to an assessment that the qualitative improvement of the employment situation is insufficient. During 2018-2019, the employment growth rate of the core working-age group aged 30 to 50 was -0.7%, which was lower than the population growth rate (-0.6%) of that age group. Among them, the employment growth rate for those in their 40s was -2.1%, significantly lagging behind the population growth rate (-1.4%).

The Bank of Korea stated, "The slowdown in employment among the core working population negatively affects the economy by weakening growth potential and increasing the burden of elderly support," adding, "In particular, the recent spread of COVID-19 may further hinder the employment recovery of this group, as it coincides with the trend of declining employment among the core working population."

According to the Bank of Korea, while the overall economic activity participation rate maintains an upward trend, the economic activity participation rate of the core working population has turned downward since 2018 due to sluggish male economic activity. The causes include ▲decreased job-seeking probability ▲industrial and occupational structural changes due to automation ▲mismatch between education, skills, and jobs.

A Bank of Korea official suggested, "It is urgent to increase the economic activity participation rate to recover employment among the core working population," and recommended, "Expanding the social safety net to prevent the core working population from exiting the labor market, and promoting smooth job transitions and labor market re-entry through vocational training, etc."

Furthermore, the official emphasized, "Especially considering the possibility that the recent spread of COVID-19 may further shrink employment and economic activity among the core working population, policies to support employment retention and enhance their economic activity should be prepared to cushion the employment shock."

This content was produced with the assistance of AI translation services.