Employment Numbers Increased? Jobs for People in Their 40s Decrease While Short-Term Work Rises

Statistics Korea Announces 'October Employment Trends'... Number of Employed in September Increased by 680,000 Compared to Last Year
Short-term Workers Working Less Than 36 Hours a Week Increased by 3,459,000

Gong Mi-suk, Director of the Social Statistics Bureau at Statistics Korea, is announcing the 'October 2022 Employment Trends' on the morning of the 9th at the Government Sejong Complex in Sejong City. Photo by Yonhap News

[Asia Economy Culture Young Intern Reporter] Amid growing concerns about job market instability due to the economic downturn, the number of employed people in their 40s, known as the "economic backbone," is decreasing. The government attributes this to the decline in the population of people in their 40s. However, there are also calls for employment support for this age group comparable to that provided to youth and the elderly.

According to the "October Employment Trends" released by Statistics Korea on the 9th, the number of employed people last month was 28,418,000, an increase of 677,000 compared to a year earlier. The number of employed people has been on an upward trend for 20 consecutive months since last March.

Employment increased across all age groups with 20s up by 28,000, 30s by 61,000, and 50s by 147,000, but the number of employed people in their 40s decreased by 11,000. The decline was observed only in the 40s age group, and this trend has continued for four months.

The number of employed people in their 40s turned to a decrease after an increase of 2,000 in June, with -1,000 in July, -8,000 in August, -17,000 in September, and -11,000 in October, showing continuous decline. The employment rate increase was only 0.7%, less than half of that for people in their 20s (2.0%) and 30s (2.1%).

Gong Mi-sook, Director of the Social Statistics Bureau at Statistics Korea, explained, "The continuous decrease only in the 40s is largely due to population factors," adding, "Because of the population effect, the employment rate is high, but the number of employed people continues to decline." However, some argue this is less convincing since the populations of those in their 20s and 30s are also decreasing.

The deterioration in the quality of employment, such as short-term work, was also pointed out as a problem. Last month, the number of full-time employees working 36 hours or more per week decreased by 2,794,000, but the number of short-term employees working less than 36 hours increased by 3,459,000 compared to a year ago, marking a record high for October.

Additionally, about 70% of new employed people are elderly aged 60 or older. Looking at the number of employed people by age last month, those aged 60 and above increased by 460,000. However, considering that a significant portion of the elderly are in regular or temporary positions, this is interpreted as an increase in low-paying and unstable employment rather than quality jobs.

There are analyses that the outlook for the job market is bleak. Recently, high inflation and high interest rates have continued, and exports have contracted, leading to a slowdown in the increase of employed people. The increase in employed people exceeded 1 million in January and February this year, showing an unusual boom, but last month it was limited to 677,000.

The Ministry of Economy and Finance stated, "Due to economic uncertainties and demographic changes, the increase in the number of employed people is expected to slow down next year," adding, "We will strengthen proactive labor market policies such as workforce development, vocational training, and employment service innovation, support the labor supply promotion of potential workers including youth, women, and the elderly, and continue to expand the foundation for private job creation through strengthening export competitiveness, deregulation, and support for venture and startup activation."