Job Market Disparities Persist Across Age Groups in South Korea

Disparities in the labor market based on education and region have been observed across all age groups, from youth to seniors. The youth demographic shows a concentration of stable jobs in the metropolitan area and among highly educated individuals, while middle-aged workers experience a decline in job quality after retirement, and seniors face inadequate institutional protections.

The Korea Employment Information Service released a report on July 27, titled 'In-Depth Analysis of the Labor Market Using Employment Panels,' which utilized data from youth and aging employment panels to analyze labor market participation and job quality across different life stages.

According to the report, a clear trend of concentration in the metropolitan area was evident in the youth labor market. More than half of the surveyed youth resided in the metropolitan area, where stable jobs were also concentrated. Those with a college degree had a higher employment rate and a lower rate of inactivity, while those with a high school diploma or less had relatively higher rates of inactivity and unstable employment. Although employment increased with age, disparities based on education and region remained unresolved.

Overall, employment conditions for youth have improved. The proportion of employed youth in permanent positions rose from 64.9% in 2021 to 74.6% in 2023, while the share of temporary and daily workers decreased from 28.2% to 18.9% during the same period.

However, these changes were not uniform across all groups. The proportion of permanent positions was relatively high among those in the metropolitan area and those with a college degree, while unstable employment was concentrated among those in non-metropolitan areas and those with a high school diploma or less. Thus, education and region emerged as key factors dividing the labor market.

For middle-aged workers, the quality of employment significantly declined after leaving their primary jobs. Approximately 31% of respondents had already retired from their main jobs, and many of them re-entered the labor market through temporary, daily, or self-employed positions.

Re-employment opportunities were often short-term, non-regular, and low-paying. Men primarily transitioned to self-employment, while women tended to concentrate in low-skilled service sectors such as caregiving, sales, and cleaning. Disparities based on education and region persisted.

Social security levels also varied significantly by employment type. The enrollment rates for the National Pension among permanent workers were 73%, for employment insurance 72%, and for severance pay 83%. In contrast, the social insurance enrollment rate for temporary and daily workers remained below 30%. The Korea Employment Information Service diagnosed that re-employment positions often fall outside the protective framework of institutional support.

Seniors demonstrated a strong desire to remain in the labor market. An analysis of 747 individuals aged 59 to 92 who participated in the Aging Research Panel from 2014 to 2022 revealed that 68.3%, or 510 individuals, currently held jobs. Over 90% of wage workers, self-employed individuals, and unpaid family workers expressed a desire to continue working.

The Korea Employment Information Service interpreted that labor among seniors serves not only as a means of securing income but also as a way to maintain social relationships and identity. However, more than half of the employed seniors reported having no formal employment contracts, and the proportion of self-employed individuals without employees and unpaid family workers was also high, indicating that institutional protections remain weak.

Kim Min-jeong, head of the Employment Statistics Survey Team at the Korea Employment Information Service, stated, "Structural disparities based on education and region persist in labor market participation and job quality from youth to seniors. Tailored employment policies that address regional disparities for youth, improve re-employment quality for middle-aged workers, and expand social security for seniors are essential."