Increasing number of working seniors

According to the recently released results of the Supplemental Survey of the Elderly in the Economically Active Population Census by the National Statistical Office, six out of ten Koreans between the ages of 55 and 79 are either currently employed or actively seeking job opportunities. In May of this year, the labor force participation rate for the elderly aged 55 to 79 reached 60.2%, marking the third consecutive year of setting a record high. A notable trend observed is the significant rise in the number of elderly individuals over the age of 65 who are engaging in the workforce. In the previous year, the count of employed individuals in this age group surpassed 3,265,000, indicating a remarkable increase of over 50% since 2017. Over the span of five years, the average annual growth rate has hovered close to 9%.

The increase in the number of working seniors is inevitable as the baby boomer generation (born between 1955 and 1963) began to retire. However, they remain in the job market mainly due to money. In fact, among the entire elderly population, only 50.3% received a pension in the past year. Their average monthly pension, including the national pension, amounted to 750,000 won. Many of them need to work to cover living expenses and other financial needs.

It is pointed out that the financial struggles faced by the elderly can be observed in the rising number of employed women over the age of 65. Last month, there were 1,675,000 employed women in this age group, which is an increase of 144,000 compared to the previous year. In June, the number of employed individuals increased by 333,000, with 43% being senior women. An official from a government-run research institute mentioned, “The employment growth is notable in the lodging and restaurant industries, where wages tend to be relatively low, and temporary jobs are common.” This suggests that some employed women over 65 might be seeking employment without hesitation, even if the job quality is not optimal.

However, when examining the rising participation rate of the elderly, focusing solely on the cost of living overlooks a crucial aspect. Among individuals aged 55 to 79 who desire to continue working, 35.6% mentioned that they do so for the sheer ‘joy of work.’ When considering job preferences, a higher percentage (29.6%) emphasized the ‘amount of work and time of day’ as compared to 'wage level' (25.0%). These findings highlight that many older individuals seek to strike a work-life balance.

Regardless of the reasons, the inevitable rise in labor force participation among the elderly is becoming more pronounced. Moreover, the approach to employment varies significantly based on gender, age, and education level within this demographic. Last year, the government allocated a substantial budget of 31.72 trillion won for the job creation project through the supplementary budget. However, upon examining the organization and distribution of this 32 trillion won budget, there was no discernible systematic employment policy for the elderly. It becomes imperative for the government to critically evaluate its strategies and outline a clear plan to address the needs of those who choose to work beyond the age of 65.