[News in Numbers] The Age Group with the Highest Employment Rate is '60 and Over' Seniors

Last month, it was revealed that one out of every four employed persons was aged 60 or older. Not only in employment but also in entrepreneurship, the increase of those aged 60 and above is prominent, and voices calling for extended retirement age and continued employment are expected to grow.

According to Statistics Korea, the number of employed persons aged 60 or older reached a record high of 6.749 million in September this year. For the first time since related statistics began in 1982, it surpassed the number of employed persons in their 50s (6.72 million).

Looking at the proportion of total employed persons, the share of those aged 60 or older is also at an all-time high. By age group, those aged 60 or older accounted for 23.4%, the highest proportion. This was followed by those in their 50s at 23.3%, 40s at 21.5%, 30s at 19.0%, 20s at 12.4%, and 15-19 years old at 0.5%.

Back in July 1982, when these statistics were first compiled, the proportion of employed persons aged 60 or older was 6.0%, about one-quarter of those in their 20s (26.8%). The share of employed persons in their 50s was 13.9%, more than twice that of those in their 60s.

This trend appeared not only in employment but also in entrepreneurship. In July this year, the number of startup companies (excluding real estate businesses) was 95,000, a 1.5% increase compared to the same month last year, while the number of startups with founders aged 60 or older was 13,000, up 14.6%. The proportion was also high. During the same period, startups founded by those aged 60 or older accounted for 14.0% of all startups, marking a record high for that month. On a monthly basis, it ranks second highest after March (14.1%).

As employment and entrepreneurship among the elderly increase, there are calls for a social consensus on continued employment. It is explained that in the aging era, alternatives must be devised to continuously utilize the job and entrepreneurial experience and expertise of those aged 60 and above. Especially, since the working-age population (15-64 years) is expected to decrease by about 21%, from 36.74 million in 2022 to 29.03 million in 2040, measures to address labor shortages through retirement age extension are required. Currently, the legally guaranteed retirement age is up to 60. However, recent surveys show that the appropriate retirement age is considered to be about five years higher.

According to a survey conducted by Saramin on the 21st targeting 461 companies regarding perceptions of retirement age extension, the average appropriate retirement age was 65.7 years. Responses indicating 65 years as appropriate accounted for 57.9%, more than half, followed by 70 years or older (13%), 63 years (7.6%), 69 years (6.3%), 68 years (4.3%), and 64 years (3%).

Some voices suggest raising the standard age for defining elderly people itself. Lee Jung-geun, chairman of Booyoung Group and newly inaugurated as the 19th president of the Korea Senior Citizens Association, said he would propose to the government to raise the elderly age standard from the current 65 to 75 years. He advocates gradually raising it by one year annually to properly manage the number of elderly people. Chairman Lee also stated, "If the government introduces a retirement age extension system, in the first year of extension (65 years), workers should receive 40% of the peak retirement wage, and even at 75 years, 10 years later, about 20% should be paid to extend the productive retention period by 10 years."