In the past 20 years, the employment of older workers (ages 55-59) in regular positions at large companies has increased about fivefold, while youth employment (ages 23-27) has actually decreased.
According to a report released on the 7th by the Korea Enterprises Federation (KEF), the employment of older workers in the regular position sector of large companies was recorded at 247,000 in 2024. This marks a 492.6% increase from 42,000 in 2004.
Youth employment was 193,000 last year. This is a decrease of 1.8% from 196,000 in 2004. Consequently, the proportion of older workers in regular positions at large companies rose from 2.9% to 9.3%, overtaking the youth share (13.7% to 7.3%).
The proportion of older workers was notably higher in large companies with labor unions. Employment of older workers in the regular position sector of large companies with labor unions increased by 777.0%, from 25,000 in 2004 to 216,000 in 2024, while youth employment decreased from 123,000 to 121,000, a reduction of 1.8%.
KEF noted that "the sharp rise in the employment of older workers in regular positions at large companies likely indicates intensified job competition between generations, raising barriers to the labor market for young people."
The entry barriers for regular positions at large companies are also reflected in the average length of service. The average length of service for regular positions at large companies has increased from 10.40 years in 2004 to 12.14 years in 2024, while the hiring rate (the share of new hires with less than one year of service) has dropped from 9.6% to 6.5%.
Meanwhile, the gap in working conditions between regular positions at large companies and small and medium-sized enterprises (SMEs) and non-regular employees has not significantly improved over the past 20 years. The monthly wage for SMEs and non-regular employees only slightly rose from 56.8% (1.43 million won) of large company regular positions in 2004 to 57.9% (2.88 million won) in 2024, and while the rates of social insurance enrollment and welfare benefits improved slightly, they remained in the 60-70% range.
Im Young-tae, head of the KEF's Employment and Social Policy Division, stated, "Large companies with a rigid labor market should increase flexibility, while small and medium-sized enterprises and non-regular positions, which are relatively flexible, should significantly strengthen social safety nets." He added, "We need to address the current dual structure of the labor market through tailored policies to enhance flexibility and stability."