Educated working seniors may be the key to labor shortage issue

In the upcoming year, the population of individuals aged 65 or older in Korea is anticipated to surpass 10 million for the first time. Conversely, with a declining youth demographic, our economy faces the impending challenge of labor shortages. Therefore, there is an urgent need to enhance the economic engagement of productive seniors with valuable education and good health.

In the previous year, the count of individuals aged 65 or older who were employed and held a college degree or higher reached 1.222 million, reflecting a remarkable 5.4-fold surge compared to figures from 2018. Over the course of four years, the average annual growth rate exceeded 50%. In contrast, the number of elderly employees with lower educational qualifications stands at 1,985,000, still exceeding the count of highly educated individuals but declining by 100,000 over the same four-year period. It is worth noting that as people born in the 1960s, who experienced their formative years in the 1980s when college enrollment rates were on the rise, become a significant part of the elderly demographic, the acceleration in the increase of highly educated seniors is anticipated.

The pressing issue is that a significant portion of the surging population of highly educated seniors is constrained within low-quality employment positions. In the past year, approximately 23.6% of these highly educated individuals were engaged in menial labor roles, while 11.7% were occupied in production-related work. Notably, slightly more than half of this group worked more than 36 hours per week, indicating that they are often trapped in jobs that merely provide for subsistence and fail to leverage their extensive educational background and lifetime of expertise. Notably, the government’s plan to generate 1.03 million “tax jobs” for the upcoming year predominantly encompasses welfare-oriented positions, which may not align with the expectations of these highly educated seniors.

Japan, a nation that has already grappled with the ramifications of an aging population, is addressing this issue by extending employment opportunities for older individuals. Companies must provide job openings for seniors up to the age of 65. Elderly individuals, even if their income is reduced, appreciate the chance to remain in the workforce while maintaining their careers. Companies facing labor shortages also find this approach amenable. On the contrary, in Korea, the government and political circles are apprehensive due to the persistence of a rigid wage structure. They fear that if discussions about prolonged employment become substantial, it might spark strong opposition from labor unions pushing for extending the statutory retirement age to 60.

The wealth of experience and knowledge possessed by highly educated seniors in their 50s and 60s, who have steadfastly contributed to their workplaces during Korea’s rapid growth era, stands as invaluable assets to our society. If we can harness the capabilities of those who remain enthusiastic about extending their careers, it holds the potential to be a game-changer in addressing pressing issues such as labor shortages resulting from a declining birth rate and potential pension shortfalls. We must initiate a societal discourse on expanding employment prospects for these capable seniors before it becomes too late.