Number of economically active South Koreans stagnates

The employment to population ratio for Korean citizens of 15 years old and above. The year is written within the brackets.

Gov’t policies, slow recovery from 1997 financial crisis cited

Of South Koreans 15 years of age and older, the economically active population stagnated for a fourth consecutive year in 2006. According to a government report, this data highlights the fact that market conditions for job seekers have not truly improved since the nation was hit by a financial crisis in the late 1990s.

According to the report, issued by the National Statistical Office on February 7, employment to population ratio among those 15 and older stood at 59.7 percent last year, nearly unchanged from the year prior. The figure represents the percentage of those working, as compared with the entire population that is able to participate in the economy. It excludes soldiers and prisoners.

This rate peaked at 60.9 percent in 1997 but slipped to 56.4 percent in 1998 due to massive layoffs prompted by the financial crisis. Employment conditions improved until 2002 but deteriorated again in the following years. Since 2002, the economically active rate remained below the 60-percent mark. In advanced countries, the corresponding number ranges between 65-70 percent.

The rates for those between 15 and 20, between 55 and 64, and for the female population remain relatively low, the report said. The ratio for the 15-20 age group stood at 27.2 percent after dropping as low as 27.1 percent in 1998. The figure for the female population was 48.8 percent.

Experts attributed the worsening conditions to the lack of ability for companies to create jobs and the government’s failure to boost employment.

"Employment strategies by the participatory government have not been enough to turn around the deteriorating job market, driven by changing economic and demographic structures," an expert with the Korea Labor Institute said.

Son Min-jung, a researcher at Samsung Economic Research Institute, said, "The next five years will be a critical period in boosting employment conditions, as the productive population will remain limited in number after 2012 due to a low birth rate and an ‘aging’ society."

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