South Korea forecasts a shortage of 900,000 workers in the next 8 years

On March 15, the Ministry of Employment and Labor (MOEL) and the Ministry of Economy and Finance (MOEF) of the Republic of Korea held the 15th Employment Task Force (TF) meeting between relevant ministries and discussed major policy tasks based on this analysis. At the meeting, the scale of labor shortage due to demographic changes was presented in detail.

In its report on Medium- and Long-Term Labor Supply and Demand Outlook (2022-2032), the Korea Employment Information Service (KEIS) said that by 2032, Korea needs to add up to 894,000 workers to the labor market to prevent a downturn in economic growth due to a shrinking workforce.

The report stressed that South Korea's deepening demographic challenges stem from rapid aging and a sharp decline in birthrates, which will have a direct impact on the labor market.

"As the industrial restructuring progresses, industries with increasing employment and industries with decreasing employment will become clearer," MOEL Vice Minister Lee Sung-hee said.

KEIS analyzed that as the need for physical care increases and digital transformation accelerates, the number of employed people will increase in service industries, including health and welfare, information and communication, and specialized science and technology industries.

However, the auto manufacturing, metalworking and textile industries, which are transitioning to green vehicles, including electric vehicles, were singled out as industries that will see job losses.

To cope with the declining working-age population, the Korean government will develop policies to promote employment for young people, women, middle-aged people and the elderly, said Lee Sung-hee: "We will expand flexible work programs and strengthen childcare support as well as enhance job transition support. In the short term, we will make efforts to place workers with appropriate skills in appropriate positions."

Vice Minister Lee Sung-hee pledged to support the issuance of work permits to foreign workers and help them settle in the country.
South Korea's working-age population has begun to decline after peaking in 2019. The government is struggling to find a solution to the labor shortage.

Minh Hoa (reported by VTV, VNA)

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