Collapsing Economic Backbone... "Employment Rate of 3040 Age Group Ranks 30th Among 38 OECD Countries"

Hankyung Research Institute Analyzes Employment Numbers and Employment Rate Using Statistics Korea Data

Data provided by Korea Economic Research Institute

[Asia Economy Reporter Kim Heung-soon] A survey has revealed that the number of employed persons and the employment rate among the 30-49 age group (referred to as the 3040 generation), which plays a 'backbone' role in our economy, are declining. The employment rate of the 3040 generation ranked 30th out of 38 OECD countries, indicating the need for job policies targeting this demographic.

The Korea Economic Research Institute (KERI), under the Federation of Korean Industries, announced on the 13th that an analysis of Statistics Korea data showed the number of employed persons in the 3040 age group has decreased by an average of 1.5% annually since 2015. The employment rate has also dropped by 0.7 percentage points over the past five years.

When compared with OECD countries, South Korea's 3040 employment rate (76.2%) ranked 30th out of 38 countries. Compared to the G5 countries, Germany recorded 85.8%, Japan 85.1%, the United Kingdom 85.1%, France 81.9%, and the United States 76.6%, all higher than South Korea.

While South Korea's employment rate decreased by 0.7 percentage points from 2015 to 2020, Germany (84.9 → 85.8%), Japan (82.4 → 85.1%), the UK (83.0 → 85.1%), and France (80.8 → 81.9%) all saw improvements in their 3040 employment rates during the same period.

However, the United States experienced a sharp decline in employment rate in 2020 due to the COVID-19 pandemic (from 80.7% in 2019 to 76.6% in 2020). KERI explained, "This appears to be because the U.S. responded to the COVID-19 crisis with unemployment benefits and other unemployment measures rather than employment retention policies."

Significant Impact of COVID-19 on 3040
Jobs in Accommodation and Food Services, with Many Self-Employed, Hit Hard

By industry, the sector with the largest decrease in 3040 employed persons from 2019 to 2020 was accommodation and food services, which declined by 76,516 people. This was followed by education services (-71,102), wholesale and retail trade (-53,743), and manufacturing (-50,406). The industry with the largest increase was business facility management, business support, and rental services, which grew by 30,076. Next were transportation and warehousing (21,904) and public administration, defense, and social security administration (13,425).

As of 2020, industries with a high proportion of 3040 employed persons include manufacturing (19.6%), wholesale and retail trade (14.1%), education services (8.3%), health and social welfare services (7.5%), construction (7.1%), and accommodation and food services (5.8%).

Examining the average annual change rate of employed persons over the past five years in industries with a high employment share, all except health and social welfare services showed declines. In particular, accommodation and food services and wholesale and retail trade, which have many self-employed workers, saw decreases of 3.3% and 2.8%, respectively. Manufacturing, classified as providing quality jobs, also declined by 2.7%. KERI noted, "Jobs in these major industries are trending downward, indicating the need for revitalization measures in related sectors."

Data provided by Korea Economic Research Institute

Sharp Increase in 3040 Job Seekers Giving Up
Main Reason: "No Jobs Available"

The number of 3040 job seekers who have given up looking for work increased from 129,258 in 2015 to 171,358 in 2020. The primary reason cited by these job seekers last year was "I looked before but there were no jobs available" (35.2%). This was followed by "I thought there would be no jobs matching my desired wage level and working conditions" (31.8%).

KERI argued that to bring 3040 job seekers back into the labor market, the overall number of jobs must increase through economic revitalization. While job policies targeting vulnerable groups such as youth and the elderly are important, specialized vocational education and training for the relatively neglected 3040 unemployed should also be strengthened.

Choo Kwang-ho, Director of Economic Policy at KERI, emphasized, "It is crucial to create a business-friendly environment to increase manufacturing jobs, where the 3040 generation is most employed."

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