A recent study has found that the rate of employee aging in Korea is gaining. However, the average age of the unemployed has decreased with growing youth unemployment. The study points out that industries that demand a young work force will face serious labor shortages, increasing the burden faced by such companies.
According to the report by Hyundai Research Institute (HRI), the average age of the employed in Korea increased to 41.1 years (as of 2015), up from the mid-30s in the early 2000s. Of particular note is that the average age has increased by 2.1 years over the past five, representing growth in the rate of aging over each of the two five-year periods in the 2000s, when age increased by 1.2~1.4 years.
Nevertheless, the average age of jobless people decreased to 37.7 years in 2016 from 38 years in 2015. The HRI attributes this decrease to growing youth unemployment, with the proportion of workers aged 15 to 29 years at 36.4% in 1995 (representing the largest age group), but only half of that by 2015 when it had decreased to only 18%.
The trends in average age of the employed and the unemployed reflect the mismatch between job openings and job seekers. Young people are only seeking jobs with optimum working conditions, while the rate of labor market participation among the middle aged and older women has increased.
The HRI has pointed out that “the aging of workers can pose a cost burden on companies as they must pay more for lower labor productivity. Reducing the average worker age requires dealing with youth unemployment.” The Institute also mentioned that companies need to focus on establishing worker-friendly work environments to improve the productivity of older workers.