Number of middle-aged 'boomerang kids' rising

Economy

Published: 16 Nov. 2023, 09:16

Number of middle-aged 'boomerang kids' rising

Job seekers receive counselling at a job fair for middle-aged and older people held in Yeondeungpo District, western Seoul, on Oct. 19. [YONHAP]

The so-called boomerang kids — adults living with their parents for financial reasons — are not confined to 20-somethings or 30-somethings in Korea.

People in their 40s and 50s who are not currently engaged in employment, education or training (NEET) and are living at their parents’ home are increasing in number, but are overlooked and pushed aside in favor of youth who are in similar situations when it comes to government support.

“Though causes for middle-aged seclusion are interlaced and complex, it has a lot to do with economic conditions and working experience. There are many cases where, as the job search drags on, people fall into despair and become isolated as their social relationships narrow,” said Park Dae-ryeong, director of the Yiahdang Counseling Center.

“People who were in their 20s when the 1997 financial crisis hit are now in their 40s and 50s. Add to this the economic slowdown after Covid-19, which leads to the current trend of increase in middle-aged recluses seeking counseling,” Park added.

Park described one client who is in his late 40s and was a university student when the IMF crisis hit. As employment became scarce, he spent years preparing for civil service exams while working the odd part-time job. His exam scores didn't make the cut, however, and he quit working — and became what the government would classify as a NEET — after he entered his 40s. The client now lives with his parents, who are in their 70s, Park said. He mainly stays in his room, playing video games or watching YouTube, venturing out only for convenience store runs.

Middle-aged NEETs living with parents

There were 270,000 NEETs in their 40s in September this year, which is up 38.5 percent compared to 5 years prior in September 2018, according to economic activity analysis that Statistics Korea released Monday. People who are removed from the workforce for specified reasons, such as childbirth or child rearing, are not included in those numbers.

The rate of increase for middle-aged NEETs who live in their parents’ homes is even steeper. There were 56,000 NEETs in their 40s living in their parents' homes in September of 2018, a number that jumped to 31,000 this year.

Numbers for the 30s and 50s demographics are trending upward as well. The number of 50-something NEETs residing in their parents’ homes increased from 18,000 to 32,000 people during the same time period, growing 77.8 percent; the 30-something population saw a 50.5 percent spike from 97,000 to 146,000.

Some analysts have attributed the growth in middle-aged NEETs to repeated unsuccessful attempts at employment and a lack of desirable jobs. There is technically no shortage of available positions, but as the gap between small and mid-sized companies and large corporations, in terms of wages and working conditions, grows, job-seekers have trouble finding jobs that they actually want.

The most commonly cited reason by boomerang adults in their 40s for not seeking employment is that “there are no jobs at the desired wage and working condition level,” according to Statistics Korea. There are comparatively more opportunities for youths and older people, but pickings are slim for middle-aged people with no experience. The longer people in their 40s and 50s remain unemployed, the harder it is for them to return to the workforce.

Parents' financial means have also risen. It was impossible for previous generations to depend financially on their parents, but today's older demographics are more likely to have significant assets and pensions. The poverty rate for those born between 1940 and 1944 was 51.3 percent in 2021, compared to 27.8 percent between 1950 and 1945, according to a report recently published by the Korea Development Institute

The increase in unemployment for the middle-age demographic, the backbone of the economy, is in itself an economic cost. There were 221,000 unfilled jobs due to labor shortage as of August, according to the Ministry of Employment and Labor. The pressure on the older demographic, who cannot continue to work or receive higher wages to take care of their children could lead to a further decrease in consumption.

The situation in Korea is similar to those of Japan and China.

“Currently, people in their 40s can afford to live at their parents’ house without doing any outside activities because, in many cases, the parents have the financial means,” said Yoon Dong-yeol, business professor at Konkuk University. “If you look at Japan’s middle-aged hikikomori cases, there are a lot of instances where people were isolated from society because of being bullied at work or being unable to adjust to the organizational structure. It seems Korea is similar in that regard,” he said.

“In the current situation, where unfilled jobs are increasing due to a decreasing working population, measures that call back middle-aged workers, not just youths, should be implemented,” he added.

Middle-aged hikikomori, or people who live in their parents' homes and are socially withdrawn, are acknowledged nationwide in Japan. The term was introduced in 2003 to describe reclusive young people.

The expression “full-time children” — referring to unemployed people who live with their parents and do household chores in exchange for living expenses — was also recently coined in China.

But while Korea's population of middle-aged NEETs is growing, more research is needed on the exact numbers. The Office for Government Policy Coordination and the Seoul Metropolitan Government conducted its first survey on isolated and secluded youth just last year — and even that was limited to youths between the ages of 15 and 39. Japan, by contrast, has been surveying middle-aged hikikomori since 2019.

The Finance Ministry said Wednesday that the government will reserve 1 trillion won ($766.52 million) for the implementation of extensive programs to assist the rising NEET youth population.

“Despite the improvement in the overall employment situation, some young people still have difficulty finding jobs that they want and stay out of the labor market. The government will extend tailored support that best meets their needs,” said Finance Minister Choo Kyung-ho.

BY JEONG JIN-HO,KIM JU-YEON [kim.juyeon2@joongang.co.kr]