S.K.’s working population will begin to decline after 2009: report
South Korea’s so-called practical working population, defined as those between 25-54, is expected to decrease beginning in 2010, spelling a labor shortage and detrimental effects on the national economy, experts said. Some have suggested combating the problem by extending the retirement age; if it is moved to 59, an estimated 3 million will be added to the workforce by 2010. According to data announced by the National Statistical Office (NSO) on December 20, those between the ages of 15 and 64, the "working population," will likely increase every year from about 35 million this year, hitting 36 million in 2016. However, those aged 25-54, the "practical working population" considering the ages of full employment and retirement, will begin to fall in 2009 after increasing to 24.16 million, from this year’s 23.74 million. This year, those between 25-54 account for 49.2 percent of the total population, and the figure is expected to rise to 49.6 percent in 2009 but begin to fall the next year. The practical working population is likely to fall before reaching a 50-percent share of the total. In the middle and long term, the number of those aged 25-54 will drop to 23.11 million (46.9 percent) in 2015, 22.17 million (45.0 percent) in 2020 and 19.20 million (39.5 percent) in 2030, according to the NSO.Korea’s average retirement age stands at around 55, except for teachers, who generally retire later. This is the average of two different figures: according to a survey performed by the Ministry of Labor, the average retirement age is 56.8, but the Korea Labor Institute’s figure is 54.1. If the retirement age is extended by 5-10 years, the nation will be able to secure about 3-5 million workers more by 2010, experts said. Kim Dong-bae, a researcher at the Korea Labor Institute, said, "Japan has already been coping with a low birthrate and an aging society by extending its retirement age to 65. We should take the same measures in preparation for a reduction in the working population." Prior to this, he said, industry should make efforts to observe the current legal retirement age, as many workers retire earlier. Please direct questions or comments to [englishhani@hani.co.kr]
