The popularity of Gen X in the labor market

The job market may finally look up for Generation X. Recruit exhibitions for mid-career workers and companies specifically looking for those in their 40s and 50s are increasing. According to the Korean Peninsula Population Institute for Future’s 2024 Population Report, the working population aged between 15 and 64 tallied at 36.57 million last year is projected to dwindle by nearly 10 million to 27.17 million in 2044. The loss of that many in the workforce can undermine not only labor standards, but also the stability of business organizations. The country also bears a heavy blow from the reduced manpower and its impact on pensions and other social benefits.

Turning to seasoned workers with skills, organizational experience and devotion can be a practical choice for employers in the face of rigidity in the labor market. A survey showed that 76.5 percent of small and mid-sized companies are willing to recruit mid-career workers. Cesco, a leader in the pest control market, benefited from its job openings exclusive to the people in their 40s and 50s. In SK ecoplant’s payroll, 27 percent of employees are aged 50 or older. KT and Hyundai Elevator re-hire employees near retirement to share their expertise with younger workers. The government should be rewarding these employees either through financial or systematic incentives.

Retraining for older job-seekers is urgent to resolve the mismatch in the labor market. The Ministry of Employment and Labor estimates that the workforce could be short by 900,000 workers in 2032. Those who wish to work do not know where to look for jobs. There are programs aimed at addressing the mismatch between jobs and job-seekers, but those programs are mostly run by local governments. If a job candidate’s credentials do not meet job requirements, employers should be able to provide retraining programs.

The labor environment remains biased against older workers with the age of 45 being a de facto limit and anyone working until 56 being sneered as thieves. Employers whose human resource management hinges on seniority would want to replace older workers with younger recruits to save labor costs. But the young these days tend to quit their jobs easily, causing only losses for employers. Employers should transform their seniority-based pay system to a performance-based one to help prevent a possible collision between their recruitment of experienced workers and job opportunities for young people.

Mid-career employees should put down their pride. They should not pass the opportunity of starting anew as a new recruit and working under younger people out of their pride, and instead happily embrace the beginning of the second chapter in their career life.