"No One to Work"... South Korea's Core Labor Population Employment Rate Lowest in OECD

75.2%... 29th out of 36 OECD Countries
Japan at 85.9%, Germany at 84.3% with Higher Rates

Young job seekers are looking at the recruitment board. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Jin-ho] The decline in the core working-age population (ages 25-54) is accelerating due to low birth rates and aging. In particular, employment among this group has also been sluggish.

The Korea Economic Research Institute announced on the 3rd that, based on an analysis of OECD statistics and data from Statistics Korea, last year South Korea's employment rate for the core working-age population was 75.2%, ranking 29th out of 36 OECD countries.

Among major countries, the United States recorded 77.2%, slightly below the OECD average of 77.3%. In contrast, Japan (85.9%), Germany (84.3%), and France (81.9%) had higher employment rates, showing a significant gap compared to South Korea.

The Korea Economic Research Institute pointed out that the sluggish employment of the core working-age population is due to the high age at which young people in South Korea obtain their first job, the education and labor environment, and low female employment rates caused by career interruptions due to childcare.

The employment rate of high school graduate youth was also low, at 63.5%, ranking 32nd out of 34 countries. Because it is difficult for high school graduates to find jobs, the average time taken to secure their first job after graduation was 35 months for high school graduates. This is three times longer than the 11 months average for university graduates.

As a result, students are compelled to enter university to improve their employment prospects. According to a survey by Statistics Korea, 89% of elementary, middle, and high school students wished to pursue education beyond university, with the main reason being "to get a good job."

The Korea Economic Research Institute pointed out that in South Korea, many students attend university simply to find employment. It emphasized the need to strengthen vocational education and training for high school students to support those who wish to enter the labor market smoothly after graduation.

The employment rate of women in the core working-age population was also low at 64.1%, ranking 31st out of 38 OECD countries. Particularly, the employment rate for women aged 35-39 was 58.6%, which is 17.7 percentage points lower than the average employment rate of the G5 countries. This ranked 34th among 38 OECD countries, just above Turkey, Mexico, Costa Rica, and Colombia.

The main reason for the low female employment rate in South Korea is childcare. Among women in their 30s, 47.6% cited childcare as the reason for career interruption, accounting for nearly half. The Korea Economic Research Institute noted that countries with high female employment rates actively guarantee women's participation in the labor market by utilizing part-time work systems. For example, Germany's employment rate for women in their 30s was found to be 81.8%.

A representative from the Korea Economic Research Institute stated, "It is essential to increase the linkage between education and the labor market to shorten the age of employment and to enhance women's economic participation through the expansion of part-time work systems and work-family balance policies." They added, "In particular, women must be able to participate in economic activities while stably managing childcare."

Meanwhile, according to the Korea Economic Research Institute, the proportion of the core working-age population in South Korea's total population was 45.3% in 2020, the second highest among 38 OECD countries. However, it is expected to drop to 31.3% by 2047, the lowest among these countries. By 2060, it is projected to fall to 26.9%, the only country among the 38 to record a figure in the 20% range.

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