Declining Birthrate and Labor Population... "900,000 Needed by 2032"

Kim Byunghwan, the 1st Vice Minister of the Ministry of Economy and Finance, is speaking about recent employment trends at the Job Task Force meeting held on the 15th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Jo Yongjun jun21@

An analysis has emerged stating that South Korea needs to employ an additional 900,000 people over the next decade to achieve its economic growth rate targets. In particular, there is a forecast that the number of manufacturing workers will sharply decline, especially in the automobile industry. The government has decided to prepare measures to address labor shortages caused by low birth rates and an aging population.

On the 15th, the Korea Employment Information Service reported these findings in the 'Mid- to Long-term Labor Supply and Demand Outlook' at the 15th joint task force (TF) meeting on jobs held at the Government Seoul Office Complex. According to the report, South Korea must hire up to 894,000 more workers from 2022 to 2032 to meet its economic growth rate projections. Additionally, it was found that industries experiencing a decline in employment due to structural changes are becoming more distinct, and the impact of low birth rates and aging on labor supply is accelerating.

The decrease in the number of employed persons is expected to be particularly prominent in manufacturing. Especially in the automobile manufacturing sector, which is transitioning toward eco-friendly vehicles such as electric cars, employment is expected to continuously decline until 2032. On the other hand, service industries such as healthcare and welfare, information and communication, and professional scientific and technical services are identified as sectors that will drive employment growth in the future due to increased demand for care services and digital transformation.

The government stated that it will proactively prepare for job changes and develop related measures. Lee Seong-hee, Vice Minister of Employment and Labor, explained, "We are focusing on policies to promote labor market entry for potential workers such as youth, women, and middle-aged individuals in response to the labor force decline caused by demographic changes," adding, "In the short term, we will also make policy efforts to supply the necessary workforce to the right places at the right time."

The Ministry of Economy and Finance plans to announce improvement measures to enhance social mobility by the end of next month. Kim Byung-hwan, First Vice Minister of Economy and Finance, stated, "We are preparing measures to improve social mobility, a key pillar of a dynamic economy," and added, "We are identifying major policy tasks such as creating quality jobs, improving the labor market environment, and addressing educational disparities."