Nearly 10 million people in the country will reach the legal retirement age (60 years) by 2034. This group, which makes up about 20% of the total population, will need to leave the workforce sequentially. Some may be pushed into early retirement due to worsened company management. It is analyzed that the shrinking workforce will result in a drop of 0.38 percentage points (P) in the annual economic growth rate. In response, the government plans to support the reemployment of 150,000 early retirees in their 50s over the next three years, starting this year.
◇Support for middle-aged individuals struggling to reenter the workforce due to lack of practical experience
The Ministry of Employment and Labor held a meeting on the 13th to begin the implementation of the 'Middle-Aged Career Support Program.' Attending the meeting were Minister Kim Moon-soo, representatives from four corporations interested in participating in the program, and four middle-aged individuals.
The Middle-Aged Career Support Program targets middle-aged individuals in their 50s seeking reemployment after retirement. Specifically, it is aimed at those who have acquired qualifications or received vocational training for career transition post-retirement. For example, this includes individuals who were working in office positions and are obtaining certifications to reenter the skilled trades.
Minister Kim stated, “Half of the main jobs of people in their 50s are office and sales positions, and 70% of them are switching to other occupations,” adding, “Even if they invest time and expense into training and certification to find jobs, many struggle to reenter the workforce due to insufficient field experience.”
In this regard, the government plans to assist the reemployment of middle-aged individuals through the Middle-Aged Career Support Program. The program aims to support those who had to leave their jobs involuntarily due to workplace suspensions, closures, voluntary retirements, or layoffs, in finding new employment.
Individuals or corporations wishing to participate in the Middle-Aged Career Support Program can apply through six employment centers, including in Seoul, Incheon, Daegu, Busan, Gwangju, and Daejeon (Chungcheong), as well as through the Middle-Aged Tomorrow Center. The Ministry of Employment and Labor will select 910 middle-aged individuals for pilot operation this year, with plans to expand participation from next year.
◇Declining workforce, falling economic growth rate... “0.38%P drop annually until 2034”
The reason the government supports the reemployment of middle-aged individuals in their 50s is that the workforce is continuously declining. This could lead to a decrease in the economic growth rate.
The second baby boomer generation (born between 1964 and 1974), the largest single generation in the country, entered the legal retirement age last year. Over the next 11 years, 9.54 million individuals, accounting for 18.6% of the total population (as of 2024), will sequentially retire. Previously, the first baby boomer generation (born between 1955 and 1963) completed its entry into retirement age with 7.05 million individuals last year.
According to a report by the Bank of Korea, the annual economic growth rate is expected to drop by 0.38%P until the completion of the second baby boomer generation's retirement in 2034. This is larger than the 0.33%P decrease (estimated) due to the retirement of the first baby boomer generation, which had already reduced the workforce. However, if government supports for workers wishing to continue working after retirement continue, the decline is expected to decrease to 0.22%P.
Minister Kim noted, “About 10 million workers in their 50s are expected to retire, but they still maintain their health and abilities,” adding, “We will provide tailored vocational training and reemployment support to 150,000 individuals over the next three years.”