Record job losses for workers in 40s highlight economic struggles

Record job losses for workers in 40s highlight economic struggles. November. 21, 2024 08:25. by 세종=소설희기자 facthee@donga.com.
In the second quarter of 2024, South Korea saw record declines in jobs for workers under 30 and those in their 40s, traditionally considered the "backbone of the economy." The slump, driven by a sluggish domestic economy and a slowdown in the construction industry, has intensified concerns about the country’s employment landscape. Meanwhile, the nation saw a surge in jobs for those aged 60 and older, outpacing the growth of all wage-earning jobs and exacerbating the trend of a workforce increasingly skewed toward older workers.

As of May, there were 20.83 million wage and salary jobs in South Korea, an increase of 254,000 year-on-year, according to Statistics Korea's “Wage and Salary Job Trends in Q2 2024” report on Tuesday. However, this represents the smallest year-on-year increase since the second quarter of 2020, when the COVID-19 pandemic caused widespread economic disruption.

By age group, jobs for workers under 30 fell by 134,000, the steepest decline since data collection began in 2017. Jobs for those in their 40s decreased by 56,000, another record drop. In contrast, the number of jobs for workers aged 60 and older grew by 261,000, surpassing the overall growth in wage-earning positions. Jobs for workers in their 50s and 30s also increased by 124,000 and 59,000, respectively.

The construction industry experienced the sharpest decline, shedding 31,000 jobs compared to a year earlier, as the sector grappled with an economic slowdown. Closely tied to construction, real estate jobs also dropped significantly by 8,000. Meanwhile, wholesale and retail trade, heavily reliant on domestic consumption, added only 5,000 jobs - a stark slowdown compared to the previous quarter’s increase of 15,000. Among workers aged 60 and older, job growth was concentrated in health care and social welfare, with an increase of 108,000, many of which are believed to be public sector roles.

“For those under the age of 30, job losses have been widespread, with transportation and warehousing being rare exceptions,” noted an official from Statistics Korea. “The downturn in the construction industry has particularly impacted workers in their 40s.”