Korea's Population Continues to Decline... Yet Job Shortages Persist?

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] In the fourth quarter of last year, wage worker jobs reached an all-time high since statistics began in 2018, increasing by more than 370,000 compared to the previous year. However, most of these jobs were concentrated among the elderly, and jobs to resolve youth unemployment remain insufficient. Creating quality jobs has emerged as a key challenge for the new government.

According to the 'Fourth Quarter Wage Worker Job Trends' recently released by Statistics Korea, the total number of wage worker jobs in the fourth quarter of last year was 19,965,000, the highest since statistics began in the first quarter of 2018.

Manufacturing jobs numbered 4,205,000, an increase of 62,000 (1.5%) compared to the same period last year. Jobs in wholesale and retail trade and construction also increased by 62,000 (3.0%) and 26,000 (1.4%) respectively, totaling 2,142,000 and 1,894,000.

Additionally, healthcare jobs increased by 38,000 and social welfare service jobs by 100,000, resulting in a total increase of 138,000 jobs in the health and social welfare sectors. Information and communication jobs, including publishing and information services, increased by 71,000.

However, most of the jobs added in the fourth quarter of last year were concentrated among the elderly. Jobs for those in their 50s increased by 143,000, and jobs for those aged 60 and over increased by 205,000. In contrast, jobs for people in their 30s decreased by 5,000 (-0.1%).

The public widely recognizes that job creation and overcoming low birth rates are urgent for improving the structure of the economy.

In a survey conducted by the Korea Chamber of Commerce and Industry of 300 citizens on 'Public Perception of Structural Problems in the Korean Economy,' when asked about the 'most urgent structural problems to solve,' respondents most frequently cited 'youth unemployment and job issues' (83.7%) and 'low birth rate and aging population' (81.7%).

Especially when asked how much progress has been made in solving Korea's structural economic problems, 87.7% of respondents said the situation is 'stagnant' or 'worsening.' Only 12.3% responded that it is 'improving.'

Regarding reasons for the slow progress in problem-solving, the public more frequently cited 'lack of proper solutions such as insufficient policy details' (54.8%) and 'inadequate conditions to support policy implementation' (36.1%) rather than 'difficult challenges to solve' (9.1%).

A Korea Chamber of Commerce and Industry official said, "Previous governments have introduced various measures to address economic issues such as employment, population, and education, but public perception remains low," adding, "Effective measures are urgently needed to address new challenges such as strategic industry competition, carbon neutrality, the US-China hegemony conflict, and regional extinction risks, which continue to accumulate."

The new government is placing its hopes on private sector job creation. Unlike the Moon Jae-in administration, which addressed elderly employment through public job creation, public sector jobs are expected to be significantly reduced.

Employment and Labor Minister Lee Jung-sik stated in his inaugural speech, "We will foster new industries to create private sector jobs, strengthen recruitment support and training services tailored to each company through various corporate support systems, and build a more robust employment safety net to ensure no one is left behind amid industrial structural transformation, supporting smooth labor market mobility."

On the 17th, Minister Lee visited the Korea Employers Federation and said, "The government will actively support so that everyone who wants to work can easily find a job," and urged, "I hope you fulfill your social roles from a balanced and rational perspective as responsible economic actors."

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