If Jeongnyeon: The Star is Born is extended by one year, the retirement of about 50,000 regular older workers is expected to be deferred. Accordingly, some say complementary policies are needed to prevent a decline in youth jobs.
According to the labor force microdata from the National Data Office on the 9th, the number of regular wage workers born in 1964 was 291,000 in 2023 (at age 59), but fell by 54,000 to 237,000 last year (at age 60).
A similar pattern appeared when comparing the point at which those born from 1960 to 1964 move from age 59 to 60. Regular wage workers decreased by an average of 56,000, and the decline rate reached 20.1%. This is analyzed as a result of a large number of regular workers retiring en masse in line with the statutory retirement age (60).
If Jeongnyeon: The Star is Born is raised by one year to 61, it is estimated that about 56,000 older regular workers would remain employed for one more year.
Experts said extending the retirement age could lead to a reduction in youth jobs and emphasized the need for a flexible approach.
According to the report released by the Bank of Korea in Apr. titled "Super-aged society and measures for continued employment of older workers," when the number of older workers increases by one, the number of young workers falls by 0.4 to 1.5. The effect of reduced youth employment from extending the retirement age was found to be greater at large companies, which are especially preferred by young people.
Han Yosep of the Korea Development Institute (KDI) said, "As generative artificial intelligence negatively affects youth employment, adding the shock of extending the retirement age will inevitably heighten concerns about youth unemployment," and noted, "Structural measures such as easing seniority-based wage systems are needed."