South Korea's Workforce is Aging Rapidly; Economically Active Population For The 50-Above Age Bracket Hits the 10.11 Million Mark
A recent government data showed Tuesday that South Korea's working population is rapidly aging, with many 50-year-olds still working or seeking employment.
Statistics Korea revealed that people aged 50 and above accounted to 10.11 million of the country's economically active population. The number is higher by 3.7 percent from last year. This is the first time that 50-year-olds and up exceeded the 10 million mark.
According to Korea Times on Wednesday, analysts believe the figures are a result of unwelcoming financial conditions and the tight need to meet household necessities, urging people to continue working despite old age.
"Baby boomers have to continue to work even after they're done supporting their children' university education," said Lee Jun-hyup of the Hyundai Research Institute. "Also, young jobseekers remain unemployed because of the economic slump."
On the contrary, the working population of those aged 39 and below decreased by 0.2 percent this year, cutting their number from 10.23 million to 10.07 million.
The numbers in total indicate an aging workforce for South Korea. Analyst believe the number of 50-somethings in the workforce would soon outnumber those who are in the 39-and-below age mark.
In 2005, South Korea's 50-somethings working population only stood at 6.28 million, giving them a 26.3 percent chunk of the country's economically active population.
An aging society presents several problems to South Korea , particularly as to how the market will respond to the shifting demographics, the Diplomat noted Mar. 22, 2015.
"The aging population is one of the most fundamental, structural shifts happening in Korea and affecting the growth prospects for the country," said Choi Won Sik, Senior Partner at McKinsey & Company in Seoul.
however, some economist also believe that South Korea's demographic shifts could result in a "sweet spot" in which the country will see a "sizable build-up of net financial wealth", CNBC reported Oct. 29, 2013.
Senior Economist at Nomura International Young Sun Kwon said, "From a current account perspective, aging is good. The aging population is positive for savings, that's why Korea has a current account surplus
