Employment rate for 60-somethings climbs, narrowing gap with those in their 20s

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Employment rate for 60-somethings climbs, narrowing gap with those in their 20s

Published: 11 Jun. 2025, 07:00

Audio report: written by reporters, read by AI

A senior citizen looks at notices at a job fair held on May 27 in southern Seoul. [NEWS1]

The employment rate for people in their 60s has continued to climb, reaching into the 60-percent range and narrowing its gap with those in their 20s.

According to the national statistics portal operated by Statistics Korea, the employment rate for people in their 60s — those aged 60 to 69 — stood at 60.0 percent in April this year, up 1.1 percentage points from a year earlier. It was the highest April figure ever recorded.

It also marked the third time the rate has reached the 60-percent range across all months, following last October with 60.0 percent and November with 60.1 percent. Since monthly data collection began in January 2018, when the rate was 51.2 percent, the figure has steadily increased.

The primary reason is financial necessity. With insufficient retirement income support, such as pensions, and increasing life expectancy, many older adults choose to work instead of retiring. According to a report published in November last year by the Korea Institute for Health and Social Affairs, most people aged 65 and older — or 84.8 percent — work to cover living expenses or provide themselves with spending money. There are also nonfinancial motivations: maintaining health, cited by 6.2 percent; using one’s abilities, 3.6 percent; passing time, 3.1 percent; and social interaction, 2.0 percent.

“The rise in the employment rate among those in their 60s last year was centered on the health sector, which includes care service jobs, and the social welfare services industry, which is linked to the government’s direct job creation programs,” said Song Jun-haeng, head of employment statistics at Statistics Korea.

Jobseekers look at notices at a job fair held on June 5 in Coex, southern Seoul. [YONHAP]

In contrast, the employment rate for people in their 20s fell by 0.9 percentage points in April compared to the same period last year, reaching 60.3 percent. The monthly rate for this age group has been trending downward, posting year-on-year declines for eight consecutive months from September last year through April this year. The gap between the two age groups has now narrowed to just 0.3 percentage points.

The leading cause for the decline among people in their 20s is the shrinking population due to the low birthrate, combined with a steeper decline in the number of employed individuals in that age group. This is attributed to the slowing economic growth rate, which has led to fewer new jobs.

Additionally, the increasingly advanced structure of the economy has weakened companies’ job-creating capabilities. Companies are also increasingly inclined to hire experienced workers instead of training new employees to reduce training costs.

Another factor is rising expectations among people in their 20s. As young people spend more time preparing for the jobs they want, the employment rate falls. As of May last year, the average time it took for people aged 15 to 29 to land their first job after graduation was 11.5 months — the longest period on record.

Jobseekers look at notices at a job fair for people with disabilities held on May 27 in Incheon. [YONHAP]

Kim Yu-seon, chair of the Korea Labor and Society Institute, suggested that the employment rate for people in their 60s may even overtake those in their 20s soon.

The upward trend extends even to older age groups. In April, the employment rate for people aged 70 and older hit 33.0 percent — the highest of any month on record. The rate for those aged 75 and older was 27.5 percent, also an all-time high.

“The government needs to focus not only on employment among older adults but also on raising the employment rate for people in their 20s,” said Kim, pointing out that low employment among the younger generation delays marriage and childbirth, which exacerbates the country’s low birthrate and further drags down economic growth.

Concerns are also being raised about President Lee Jae-myung’s campaign pledges to extend the retirement age from 60 to 65 and introduce a four-and-a-half-day workweek.

A jobseeker sits down for a consultation session at a job fair held in Busan on May 27. [JOONGANG ILBO]

“Such policies could increase labor costs for businesses and possibly further discourage new hiring, placing downward pressure on employment for people in their 20s,” said Yoon Dong-yeol, a business professor at Konkuk University.

Experts also emphasized the need for structural investment in industries capable of generating high-quality new jobs, such as those driven by artificial intelligence.

“To prevent these side effects, the government must implement complementary policies that ease the burden on companies, such as increasing labor flexibility," said Oh Gye-taik, a senior researcher at the Korea Labor Institute.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM MIN-JOONG [[email protected]]