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Korea's job market shows growth but favors older workers over the youth population

Published: 19 Oct. 2025, 16:57 Updated: 19 Oct. 2025, 19:42

Job seekers aged 60 and older look at a job posting board during the 17th Senior Job Fair held at Hwaseong Haenggung Square in Paldal District, Suwon, Gyeonggi, on March 28. [NEWS1]

Korea's employment is growing on paper, but a deeper look at statistics reveals a market closed off to the younger population and disproportionate growth of industries that fail to buoy a struggling economy.

Korea recorded a year-on-year employment gain of 312,000 in September, the largest in 19 months, but nearly all of that growth came from workers aged 60 and older, while the number of jobs held by those under 60 declined by 69,000.

Sung, a 65-year-old retiree from a mid-sized firm, recently returned to work as a part-time caregiver. After two years of retirement, Sung felt restless and decided to earn a new certification earlier this year and found work in the care sector.

“I don’t have much to worry about financially thanks to my pension, but after working my whole life, I felt stuck just staying at home,” Sung said. “Now, not only am I earning again, I was able to give my grandchildren generous pocket money for Chuseok. That felt meaningful.”

Sung is part of a growing segment of older Koreans helping to prop up the country’s employment figures. The number of employed people in September rose by 312,000 from a year earlier, marking the largest increase in 19 months, according to the Ministry of Data and Statistics on Saturday. But employment among people under the age of 60 declined by 69,000 during the same period.

Workers in their 60s and older accounted for the bulk of job growth, with 381,000 more employed than a year ago. The only other group to see an increase was those in their 30s, with 133,000 jobs added.

Employment fell among younger and middle-aged groups, with youth employment — defined as ages 15 to 29 — declining by 146,000. Employment fell by 45,000 among workers in their 40s and by 11,000 among those in their 50s.

Job seekers review company recruitment information during a job fair in Gumi, North Gyeongsang on July 16. [YONHAP]

The trend points to a structural shift in Korea’s labor market, where older workers are filling roles, while opportunities for younger workers remain limited.

Job growth by sector also reveals a skewed picture. Employment in the health and social welfare services sector grew by 304,000, nearly matching the overall national gain. That means nearly all net new jobs came from a single category, which includes care-related services.

“This reflects growing demand for medical and care services due to demographic changes,” a Ministry of Data and Statistics official said. “Many publicly supported senior jobs are carried out through institutions such as social welfare centers, so they are categorized within the health and welfare sector.”

Other industries recorded declines. The manufacturing sector lost 61,000 jobs over the past year. The agriculture, forestry and fisheries sector shed 146,000 jobs, while construction fell by 84,000 and information and communications by 13,000.

On the other hand, retail jobs increased by 28,000 and hospitality jobs by 26,000, aided in part by the government's consumer coupon programs, designed to boost consumer spending in key service sectors such as restaurants. But their growth was modest compared to health and welfare and did little to offset overall losses in private-sector employment.

The photo shows a view of the holiday event section at Shinsegae Department Store in central Seoul on Sept. 30. [YONHAP]

“We’re seeing signs that Korea’s economic fundamentals are deteriorating, with this year’s projected growth stuck below 1 percent,” said Cho Dong-geun, professor emeritus of economics at Myongji University, who said the figures point to deeper economic weaknesses.

“The fact that employment is growing almost exclusively through welfare-driven jobs for seniors is clear evidence of that. The Lee Jae Myung administration continues to focus on regulatory tightening. It should pivot toward growth-focused policies that can create meaningful employment, particularly for younger workers.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHO HYUN-SUK [[email protected]]