The jobs – and ageing faces – behind South Korea’s record low unemployment numbers

A woman appears at recruiting information for the duration of a task truthful in Seoul, South Korea, April 12, 2017. REUTERS/Kim Hong-Ji

SEOUL, March 23 (Reuters) – At age 69, Kim Jung-mi retains a few work: she spends three hours getting a two-year old dwelling from kindergarten every single weekday for $9 for each hour, then washes vegetables at a retail outlet that sells kimchi. Occasionally, she walks her neighbour’s canine.

That variety of gig do the job among the elderly individuals has helped South Korea to log a document-placing run of reduced unemployment via February, at 2.7%, with practically half of the task boosts driven by individuals 60 and older. read more

Though the drift to lower-compensated, section-time operate is a global phenomenon, it has place South Korea at the top rated of OECD’s scale measuring the momentary employment charge for folks 65 and older: 69% of that age group is working someplace, significantly larger than 38.1% in Japan and 13.2% for the peer group regular.

The heavy concentration of position raises in the aged population shows the fragile mother nature of the domestic financial state, industry experts say. examine additional

“I know I’m underpaid as opposed to some of younger people today in the region, but the place else would I go if I do not choose this option?” Kim explained, introducing that she is satisfied with her present-day employment after other roles these types of as remaining a cleaner.

None of Kim’s work opportunities comes with any social protection positive aspects or the potential for meaningful wage improves. These types of work do tiny to strengthen the country’s non-public intake, as several in Kim’s age group are doing work to hardly escape poverty.

It also highlights a steady trouble in Asia’s fourth-largest economic climate, wherever the United Nations estimates that the share of elderly individuals will become the most significant of any place by 2050.

The country’s elderly experience the maximum danger of turning into suicidal, and the relative poverty fee for 65-yr-olds and above in Korea is the greatest in the OECD. About 45% of that age team is residing on less than 50% of the median disposable earnings.

Wages are barely expanding. Nominal wage expansion for South Korea’s salaried staff was 1.7% past calendar year right after a .3% gain in 2020, information from Data Korea shows.

Yoon Jee-ho, a Citi economist centered in Seoul, claims the higher poverty level exposes structural weak point.

“Korea’s people today aged previously mentioned 65 are inclined to have a bigger revenue poverty rate compared to other significant economies, partly because of to inadequate coverage of the present pension method as properly as not more than enough personal financial savings,” Yoon said.

The demographic squeeze is not exceptional.

In Japan, senior citizens have grow to be an progressively vital part of the country’s labour pool, as about 13% of the workforce are 65 or older, up from 9% in 2012. Extra than three-quarters are part-timers filling roles these kinds of as cleaners, taxi motorists and store clerks.

James Cho, CEO of Korean mobile system “Pleasehelp,” which connects work seekers to errand get the job done, says several folks on the cusp of retirement are just as busy as all those who are in their 20s and 30s it conditions of career looking.

“There is no age boundary as prolonged as a person can use a smart cellphone, the elderly can also make cash,” Cho explained, adding that there were all sorts of gigs, which includes catching cockroaches, staging a fight, and delivery orders.

Conservative President-elect Yoon Suk-yeol, who promised to provide secure, personal sector-led position progress, is inheriting an financial state that expanded at the speediest rate in 11 yrs in 2021, with minimum wage at 42% bigger that of 5 a long time in the past. go through far more

The fast-growing proportion of the elderly inhabitants poses a increasing risk to general public funds, as far more individuals will need social welfare at a time when tax earnings is established to decline along with a shrinking workforce.

“Retirement? I’m not certain if I can ever do that I will most likely be performing as prolonged as I can,” Kim reported.

(This tale was corrected to say unemployment, not work in headline)

Reporting by Cynthia Kim Added reporting by Joori Roh. Enhancing by Gerry Doyle

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